HMRC as a Creditor

Keeping your tax up-to-date

It is essential that a business keeps its tax affairs up to date. All disclosures should be made accurately and on time. Failure to comply with HMRC expectations and guidance can result in penalties and interest being applied. In some cases, those amounts can be extensive – and expensive. It’s far better to have a working relationship with HMRC, as a key creditor.

Struggling to meet your tax commitment

However, we recognise that some businesses struggle to manage their relationship with HMRC. Errors, (no matter how genuine), can have a significant impact, especially if they arise unexpectedly. If you built up arrears on your tax account, time to pay may be a solution.  HMRC will not generally allow time to pay historic debts beyond a few months, and current obligations must usually be met on time. Any long-term arrangement or settlement may only be feasible alongside an independent review (IBR) or within a formal debt process.

How we can help

Dunedin Advisory have extensive experience of negotiating with HMRC and are a recognised firm on their panel of IPs (insolvency practitioners). Should you require help negotiating with HMRC, we can assist you in formulating a proposed settlement or achieving a realistic debt management plan.

Speak with us before you speak to HMRC: early consultation with us can offer you several advantages. For example, you may be able to:

  • obtain a moratorium (breathing space) to prevent HMRC raising action for recovery.  This will allow your business time to prepare and propose a repayment plan or source alternative funding to settle the debt
  • Negotiate a settlement amount
  • Sell part of your business or surplus assets to raise additional funds and preserve continuity of trade
  • Consider whether formal insolvency is appropriate
  • Safeguard part of your business
  • Create a restructuring plan to enable your business to continue
  • Work out a plan which relieves historic debt

We will help you assess your situation, explore your options, provide you with advice and develop a solution for you. To arrange a free, no obligation consultation click here or call 01592 630085.