HM Revenue & Customs (HMRC) are the most common business creditor and, for many directors, it can be intimidating having to deal with them. If your company is unable to file its returns / make payment by the VAT or PAYE deadline, we may be able to assist in negotiating with HMRC. Alternative options for dealing with HMRC include refinancing, invoice factoring or, alternatively, insolvency rescue options, such as Administration or a Company Voluntary Arrangement. These are all options that we can assist you with.
Acting early will provide more options and you should never ignore payment issues. HMRC are extremely active in recovering taxes and will instigate enforcement measures such as bailiffs and issuing winding up petitions in instances where their correspondence is ignored. Failure to pay Crown debt as it falls due is a clear sign of insolvency which can lead to accusations of Director misconduct.
Accelerated Payment Notice (APN)
Individuals and Companies throughout the UK have, since 2014, been preparing themselves for demands to repay tax avoided, using tax schemes. Even if the scheme utilised appeared to be legitimate, HMRC are investigating more and more tax advantageous schemes and determining them to be ‘tax avoidance.’
What does an APN mean for me?
The notice determines an amount of tax which you must pay ahead of final determination. Payment is required within 90 days and there is no appeal process.
A demand of this nature is undoubtedly going to affect cashflow and it is probable that the notice will render a company / sole trader, insolvent.
Continuing to trade whilst insolvent may call into question your conduct as a Director / individual and so immediate advice should be sought. Do not ignore a notice of this nature as it can lead to a Direct Payment Notice, Bailiffs or a Winding up Petition.
What should I do if I have received a Follower notice and/or APN?
You should act immediately. If you have received a Follower Notice and/or an APN or believe that you may have participated in a tax avoidance scheme and require guidance or advice contact us now for a free, confidential and professional consultation with a Licensed Insolvency Practitioner. HMRC will seek to recover funds and may consider taking action against you personally if it can be proven that you benefited as an individual from the avoidance.
Time to Pay Arrangements (TTP)
A recognised way of dealing with arrears due to HMRC is a Time to Pay Arrangement, whereby the deadline for payment is extended to permit payment by way of instalments.
A TTP can be set up directly with HMRC by contacting the Business Payment Support Service (BPSS) on 0300 200 3835. More information on this can be found at https://www.gov.uk/government/organisations/hm-revenue-customs/contact/business-payment-support-service.
Alternatively, if you find dealing with HMRC daunting we have many years experience and can act on your behalf. To discuss a TTP with us please call us on 0800 0724 558 or email us at info@debtsolutionshub.co.uk. If you have had a TTP arrangement refused by HMRC then we may be able to assist with refinancing, invoice factoring or rescue options such as a Company Voluntary Arrangement or Administration. We will always endeavour to find an option.
Notice of Requirement (NOR)
HMRC have for some time been issuing Companies and in some instances, sole traders, with a NOR also known as a security or a VAT bond. The security can be requested to cover for future liabilities including PAYE and National Insurance. A NOR will be issued in instances where HMRC believe that you will not pay your tax or duty on time. The notice will demand a cash payment from your business and those funds will be retained by HMRC for a period of 12-24 months, pending normal scheduled payments being made. Late / missed payments will be deducted from the security and the duration over which funds are held may be extended.
Missing payments with HMRC is a clear sign of not being able to pay liabilities as they fall due. A requirement to place additional funds with HMRC as security is going to affect cashflow of an already struggling Company / sole trader and so if you have received a NOR, or are regularly incurring surcharges and penalties for late returns / payments, you should consider the financial position of your business carefully.
For a free, confidential and no obligations discussion with a qualified Insolvency Practitioner
Please contact us on 0800 0724 558 or email us at info@debtsolutionshub.co.uk.
Additional guidance on NOR’s can be found at https://www.gov.uk/guidance/tax-deposits-and-bonds-employers-and-traders.
Direct Payment Notice (DPN)
What is a DPN?
Recent changes to legislation allow HMRC to recover monies due to them, directly from your Bank or Building Society. Guidance issued by HMRC suggests that a direct recovery of debt will only take place in circumstances where you
- Have repeatedly refused to pay what you owe;
- Have had a face-to-face visit from them to discuss the debt; and
- Would have at least £5,000 in your account(s) after the payment has been taken.
If HMRC intend to recover the debt directly they will:
- Write to advise of their plan;
- Explain what the process involves; and
- Advise how to contact them if you have queries.
If the debt cannot be taken in one debit, HMRC will take instalment payments directly from your Bank or Building Society if it appears that there are sufficient funds to do so.
HMRC can implement direct recovery for any debt in excess of £1,000.
Contact us on 0800 0724 558 now for free advice and support in relation to any issues that you may be experiencing with your HMRC debt.
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