www.company-debt.co.uk

[Michael14]

Hi there, I wondered if you could gice any advice

My business has an HMRC bill that it is not in a position to pay. Where can I go to get financial help?

[Steven Jackson]

Hi Michael14 and welcome

One of the first things you should consider is the HMRC time to pay scheme. This would suspend the required revenue payment for 3-6 months.

[Derek Cooper]

Hello Michael14

If you have a debt with HMRC or any other creditor, I suggest that you speak to a company insolvency expert as soon as possible. As Steve has suggested the government's time to pay scheme is one option. However, this is only designed to help to overcome a period of reduced cash flow. The debt will still eventually need to be paid.

If you believe that you have a more underlying cash flow and debt problem, then perhaps a better way to tackle it would be to consider a company voluntary arrangement (CVA) which would actually allow the business to write off debt entirely (including that owed to HMRC).

[Graham Wilson]

Hi Michael14

I agree with Derek. You need to think carefully whether the problem is just temporary or whether your business is actually viable with its current levels of debt. If you feel that the company is viable but is being dragged down by its debt (HMRC or otherwise) then simply postponing payments is just putting off the problem. A company voluntary arrangement or even pre pack would enable you to reschedule and write off significant parts of the company debt once and for all which would then allow you to trade profitably in the future.