HMRC limited company tax debt problems in Northern Ireland
For most insolvent companies in Northern Ireland, they will have HMRC debts in some form or other. While HMRC debts may be common, this does not mean that the situation can be ignored.
HMRC has the power to quickly close down a business if they believe it is insolvent. This is why it can be particularly worrying for sole traders and company directors with arrears of corporation tax, National Insurance, or VAT.
The experts at Northern Ireland Debt Solutions can offer actionable help and advice if your business is insolvent and owes money to HMRC. Depending on the scale of the problems you are facing and the level of support your company requires, we can communicate with HMRC on your behalf, and help you deal with your current and past obligations.
We understand how HMRC operates, their systems, procedures, and priorities, and can guide you accordingly to make sure your business stands the best chance of survival.
HMRC enforcement of company tax debt
HMRC are known to act quickly in the recovery of tax debt, and have extensive powers in this respect. They may begin by passing the collection of your debt to an agency, or apply heavy financial penalties in light of your arrears.
Providing you can put forward a valid case, HMRC are open to affordable repayment plans which can help you deal with your tax arrears in a way that suits both parties. Negotiating with HMRC can be daunting, however, and you may feel that professional input would serve you well in this respect. If this is the case, we can liaise with HMRC on your behalf and work towards a mutually-agreeable repayment plan.
HMRC Time to Pay arrangement (TTP) in Northern Ireland
A Time to Pay arrangement with HMRC is essentially an instalment plan to repay your tax or National Insurance arrears over an extended period of time, usually 3-6 months. It’s vital that your new payment is affordable, however, as if a single repayment is missed, HMRC are likely to seek a winding up order from the court to close your business down.
Formal insolvency due to HMRC tax debts
If HMRC are unwilling to offer you extra time to pay your tax arrears, we can offer the professional advice and support you need to discover your options.
You may be able to trade your way out of difficulty by entering a Company Voluntary Arrangement (CVA), which acts a formal payment plan between your company and your its creditors – including HMRC.
Alternatively, a Creditors’ Voluntary Liquidation (CVL) may be appropriate if you believe your company is past the point of rescue and you would like to bring its affairs to an orderly end. A CVL will take care of all outstanding debts of the company, including those owed to HMRC.
Northern Ireland Debt Solutions can help your business deal with tax arrears, and offer a free same-day consultation in complete confidence. Call our expert team for professional advice and guidance on dealing with HMRC.
