Financial Consultancy With Large HMRC Debts

The Challenge

A small financial consultancy, incorporated in 2007, was facing a mounting debt crisis with HMRC. While the company was profitable and keeping up with its VAT obligations, it began to accumulate significant corporation tax arrears from 2009/2010. The company defaulted on a 12-month payment plan after just 8 months, leaving a remaining debt of approximately £30,000, with another £26,000 about to become due. HMRC’s growing impatience prompted the sole director to seek professional advice, as he realised the company could not realistically pay off the arrears while meeting its current financial obligations.

The Solution

The director proactively decided that the company could not be rescued and opted for a formal insolvency process: Creditors’ Voluntary Liquidation. This decision was made to ensure the creditors’ position would not worsen and to address the company’s financial distress in an orderly manner. The director appointed RMT KSA to manage the process, which involved liaising with the company’s creditors and preparing a final statement of affairs.

The Results

The company was formally placed into voluntary liquidation on July 2, 2013, by licensed insolvency practitioners, Eric Walls and Wayne Harrison, appointed as joint liquidators.