It’s more than easy to get behind on VAT installments, PAYE, or corporation tax to HMRC.
It usually takes a few years for this arrears to catch up, but when they do that niggling feeling in the back of your mind will progress to something a lot more serious. Perhaps you’ve received a threatening letter from a creditor, or even more seriously a Winding up Petition letter on the doormat. If that’s the case, you should realise you’re in a very serious predicament and these threats cannot be ignored.
It’s time to talk with an advisor who can inform you about the possible avenues available to you and the responsible steps to take. ‘HMRC threats, in particular’ commented Mike Smith, of Jameson Smith & Co, ‘represent one of the most serious predicaments a company director can find themselves in. Our advice would always be for directors to take immediate action in these circumstances.’
Taking Control of Escalating Circumstances
There are many debt advice or debt resolution firms out there that you can turn to when you are in the throes of a financial crisis. As a business owner or a managing director you may have had issues managing the company’s financial situation, making the right purchasing decisions, and choosing who you should pay first when faced with a lack of positive cash flow. These are not decisions that are easy to make and no one wants to have to face the harsh reality of admitting that they are responsible for driving the company that they manage to the brink of financial disaster. Taking back control is key when it comes to debt resolution and debt advice firms can advise you based on you own specific needs.
Debt Resolution Options for Limited Companies
Rest assured, there are options available even when things seem to be spinning out of control. A debt advice firm or debt resolution company will assess your company’s financial picture and based on that assessment give you viable solutions to your financial issues. They can also work with your creditors and negotiate deals with them to reduce your total debt load and set up realistic repayment plans so that you can get your company back on track. Getting more into debt by taking out a bank loan at a ridiculous interest rate is not something that makes sense for all companies struggling with debt. Additionally, if you don’t have money in the bank, the banks won’t lend you anything anyway. Makes so much sense, right? There are a few options when it comes to the debt resolution process and it all depends on just how bad your company’s situation is. If you are in a position where you have drifted into the red and you have just started feeling the negative effects of a negative cash flow you may be a candidate for company rescue options. If on the other hand your company is in serious trouble, with a total inability to pay its business and tax obligations in addition to having creditors putting in legal actions against you and your company you may be beyond rescue. The last resort for any company at this juncture is bankruptcy or company liquidation. Whatever your situation the only way to know for sure is to commission the assistance of professionals. Good Luck!