HMRC Debts

Understanding your financial obligations is a crucial part of running a business and that is especially true when it comes to HMRC.

Nobody aims to get behind on their bills and the dreaded brown letters often bring what can be percieved as ‘bad news’. Knowing how to see past the legal jargon and understand what is being communicated to you often needs some expert advice.

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How do we help you deal with HMRC debt?

Time To Pay Arrangements

We will help to set up Time To Pay Arrangements. A Time to Pay (TTP) arrangement offers the option to settle your HMRC debt through manageable installments, alleviating immediate financial strain. Obtaining a TTP agreement hinges on being able to persuade HMRC of the company’s ability to uphold the suggested payment schedule.

Negotiating Penalties

We will try and negotiate a decrease in penalties or interest charges linked to your HMRC debt. This usually entails showing that the company had a valid reason for the delayed payment or that exceptional circumstances were at play, which we can help identify.

Business Viability

We will have a deep dive into your business and understand if your business is viable in its current form. It may be that your best course of action is a recovery process that enables you to start your business again.

Debt Collection Agencies

HMRC may enlist third-party debt collection agencies to reclaim outstanding debts. This procedure may entail multiple communications, and these agencies are empowered to pursue specific legal measures for debt retrieval.

Enforcement Action

HMRC can initiate enforcement action, including ‘taking control of goods’ to cover the outstanding debt. They can list company assets and sell them at auction. This action can be distressing and disruptive to normal business operations.

Legal Proceedings

In more serious cases, HMRC can instigate legal proceedings against a company. This could lead to a winding-up order and subsequent compulsory liquidation of the company. It’s important to note that in such circumstances, the conduct of directors will be scrutinised, and they could face disqualification, personal liability, or even criminal charges.

Just remember, when dealing with HMRC: Ignorance is not a valid form of defence.

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Yes – HMRC can absolutely chase a dissolved company. They have six years from the date of dissolution and twenty years if they believe and fraud or negligence has taken place.

Yes, you can. However, should your conduct as a director be called into question for the company you were a director of, you could be banned at a later stage.

No it will not. Being the director of a limited company limits the liability to the company. That is providing you have acted as any reasonable person would whilst running the business and not signed up to any personal guarantees or have an overdrawn directors loan account.

HMRC Debts

How do we help you deal with HMRC debt?

Ways in which HMRC try and collect their debts

Frequently Asked Questions