Business Recovery and Insolvency Practitioners

NEWS: HUGE RISE IN RELIANCE ON VAT AND PAYE INSTALMENTS

Added: 25/07/2008

Installment Payments

It is our understanding that because of the well publicized credit crunch, coupled with the downturn in business, a large number of companies have now taken the unusual steps of spreading out their PAYE, NI and VAT liabilities so as to try and avoid the threat of going under.

Observers believe that one of the major tests of their resilience will fall at the end of July when quarterly VAT accounts are to be discharged.

Obviously time to pay agreements do relieve pressure on companies cashflows, but it is normal practice for the H M Revenue & Customs to add interest.

Payment Plan to H M Revenue & Customs

We are all aware of the unprecedented economic conditions that show no signs of letting up, and our experience has taught us that the H M Revenue & Customs prefer to be kept appraised of matters and they will in justifiable circumstances agree to a payment plan, however, this should always be supported with cashflows and having agreed to a proposed payment plan they will expect complete compliance with the scheme and therefore it is important that when making the offer of payment that this is a realistic proposal.

The H M Revenue & Customs are not obliged to give companies extensions on paying their accounts, but on the other hand, our experience shows that they do not wish to see companies enter into a mode of insolvency if a scheme can be agreed.

Assistance With Your Proposal

If you need any assistance with putting forward proposals without the need to enter into a mode of insolvency, then please do not hesitate to contact one of our Partners.

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