Last year HMRC increased the number of winding up petitions filed by them by 13%. In 2014 HMRC filed 3,074 applications compared to 3,484 in 2015. HMRC took these actions in order to recover unpaid tax.
HMRC are under ever increasing pressure to recover outstanding tax but at the same time, the increase in petitions highlights the difficulties businesses and SMEs encounter in managing their daily cashflow.
We are in close contact with funders who will provide short term funding to meet VAT and tax bills that can stifle company cash flow. If there are underlying issues which require a deeper review, Poppleton & Appleby work closely with a variety of creditors including HMRC, who will consider a Company Voluntary Arrangement (‘CVA’) or, if a sole trader, an Individual Voluntary Arrangement (‘IVA’) as a way in which to resolve historical unpaid debts.
It is imperative, however, that when faced with cashflow difficulties, that directors and individuals seek financial advice at the earliest opportunity, seeking assistance from either their accountants or a recognised firm of insolvency practitioners such as Poppleton & Appleby, who should be willing to meet to discuss the options available free of charge.