Help on the best way to solve our issue.

[Inapickle22]

Hi all,

I thought it may be worth a shout on here for some advice of you good people.

We have a business, that until recently had been doing well, we turn over 1.2m and I took my eye off the ball a little and my pa/accounts has racked up a HMRC debt which she has set a time to pay on unbeknown to me.


We are going to struggle to make payments as we have a big vat quarter bill to contend with too.

After a lengthy meeting with the accountant, we decided a Recovery loan may be a good option to help us out of the short term cash flow issue. I was lead to believe the Rls was only going to need a personal Gurantee for the non gov funded part, but I'm told this isn't correct by funding circle when I called earlier today. We have approx 70K OF HMRC debt, and soon to grow with the Vat due of 22k

I have been looking at the option of a pre pack, but I don't have the liquid money to put much up for the buy back of the assets.

I really don't want to put a 150k loan on a personal guarantee as I don't feel comfortable with that over my head.

We also have half a Cbils left to the tune of 110k so I'm thinking a way to wrap things up and still be able to trade is a good option if I had the cash available for a buy back.

We don't have many other creditors owed, maybe 30k which we could cover and then a few items in asset finance.

Its making me ill all the worry, and not knowing what is best to do.

I've worked so hard to build the business and stupidly didn't have my eye on the accounts like I should have as my PA has always sorted this as it's not my strength in business but it's just ran away with her.

The time to pay is 14k a month for 5 months, but I'm not sure if they will extend if I asked. I also don't want to kick the can up the street and be back here in a few months but with some PG's if we head into the overdraft.

Hope this all makes sense.

 

[Lee Green]

I would suggest arranging an initial call with an insolvency practitioner, such as myself or any of the others on here, which will be free and help you to understand all of your options.

Once you fully understand the options you can still then try and renegotiate with HMRC.

It is possible to purchase the assets back from the IP on deferred consideration. However, the IP would need to demonstrate that your offer was the best outcome for creditors.

 

[Inapickle22]

I would suggest arranging an initial call with an insolvency practitioner, such as myself or any of the others on here, which will be free and help you to understand all of your options.

Once you fully understand the options you can still then try and renegotiate with HMRC.

It is possible to purchase the assets back from the IP on deferred consideration. However, the IP would need to demonstrate that your offer was the best outcome for creditors.

Thanks Lee.

It would be great for a chat if you have a chance at any point.

 

[Frank Wessely]

Hi @Inapickle22

I appreciate that this is overwhelming however, the important thing is now to take a step back, take appropriate advice and make objective decisions which provide a clear path forward.

There are many moving parts to this. HMRC may reconsider the TTP arrangement but will need a lot of convincing. I am currently working with several clients in a similar position.

An initial consultation will help you regain that focus and comes without charge or obligation. A first step is to produce an up to date Balance Sheet with a credible cashflow and budget for the business to form the basis of discussions.

My contact details are below if you would like to call at any time or email.

Thanks.

 

[Mark T Jones]

I'd agree that you really need to be talking to one of the IPs on here.

Have you sat down and done detailed cashflow projections? Upto and including 'worst case'?

As someone in the business of lending, I'd strongly suggest that more debt really isn't going to be the answer here, your reluctance to offer a PG suggests that you feel the same.

Hopefully within you can find a way through, either with this company or a new version.

 

[Paul Kelly ICHYB]

Where has the money gone, especially the VAT?

 

[Lisa Thomas]

Happy to throw my hat in the ring, but can see you have offers to chat from Lee and Frank so of course speak to them first.

Good luck.