Business in trouble

[John Millingto]

Hi

I’m looking for some advice

My business is in serious financial trouble. I owe 28k in PAYE and corporation tax. The HMRC have given me a time to pay arrangement but it looks like I’m going to default because we are really struggling.

I’m overdrawn on my directors loan account by about 20k. Will the HMRC come after me for the money owed.

Thanks.

 

[TGCC]

John,

HMRC absolutely will follow up with you to settle what you owe. You need to contact them right away - in fact the moment it becomes apparent that you may experience difficulty either maintaining a payment agreement or paying what will come due - you should reach out to them.

Please do not hide from HMRC. I got in difficulty for the sum of £60k owed to HMRC in a prior firm (pick your partners well...) and through a series of conversations some was written down, the remainder put on a payment plan. They are reasonable if you show engagement, but the moment it looks like you're 'evading' them they'll take the gloves off.

Find the person referred to on letters you will have received and contact them without delay.

Regards,

Mark.

 

[Paul Kelly ICHYB]

Sorry to hear about your issues.

You haven't mentioned how well your business is doing or asked how to get out of trouble?

As mentioned, keep speaking to HMRC.

It might also be a good idea to speak to an insolvency practitioner.

 

[Lisa Thomas]

Hi John

Sorry to hear your company is struggling right now.

As Paul has suggested, you really need to speak to an IP to explore options. That does not necessarily mean it's game over but the earlier you take advice, the more options that will be open to you/the company.

 

[Frank Wessely]

Hi John

Yes HMRC will pursue the debt but it appears to be a company debt so you are not personally liable.

I also see that you owe the company £20k on your director’s loan account. That’s a separate issue.

There is not sufficient detail to provide any guidance nor is it apparent what you want to achieve from the current situation.

Feel free to give me a call or send me an email if you would like to discuss further.

Thanks.