We’re sure you’re already aware that HMRC and other creditors are becoming more aggressive in their debt collecting techniques.
Below are the various methods HMRC are employing that may affect your client’s business. If your clients are worried about any current actions being taken by HMRC then contact us immediately.
Distraint is known as the preferred debt collection technique of HMRC as no court action is required to pursue. When HMRC levy a distraint they are able to seize goods for them to auction off. The alternative course of action is to allow you to enter into a walking possession agreement, so that you can continue to use the goods whilst the debt is being paid off. However, HMRC still retain all the rights of the distraint, where the goods cannot be sold without their permission.
A Personal Liability Notice for National Insurance may be issued when there has been an underpayment of contributions and HMRC consider failure to pay is attributable to the fraud or neglect of the directors. Your clients can be made liable for all National Insurance payments due to HMRC.
A Director Disqualification can occur if your client’s company goes into an insolvency procedure with a significant debt outstanding to HMRC. This might occur if your clients have not been making payments to HMRC and are effectively using the money owed to finance ongoing trade.
PAYE Security Bond is NEW LEGLISLATION which HMRC are trying to implement. The PAYE security is likely to be very similar to the request for a security bond for VAT. Should a bond for PAYE or VAT be requested then this may have adverse consequences on your client’s future cashflow. Immediate advice should be taken on how to deal with this.
For any of your clients who you feel may be facing serious commercial problems due to these regulations, contact us for a free, confidential, no obligation review whereby if necessary we can guide your client on;- Business Restructuring, Pre Pack Administration, an orderly Liquidation, Company Voluntary Arrangement (CVA) or any other process deemed necessary.
Hodgsons – Expert advice of the highest quality