28th April 2016
If a client is under pressure from a bank, HMRC or other key creditors due to cashflow issues, or struggling after a recent adverse event such as the loss of a customer or lacking a strong management team, Leonard Curtis Lifecycle can provide expert assistance to help them on your behalf, including negotiating Time to Pay (TTP) arrangements.
1. Take control of the situation – Early communication with HMRC is key; it ensures that businesses with tax arrears are able to remain in control. Negotiating a TTP arrangement over a period of time which is feasible for the business prevents further adverse impact, such as seizing of assets in lieu of arrears or a Winding-Up petition being issued.
2. Prevent disruption to trading – Once a Winding-Up petition has been publicly advertised it can cause a series of negative knock on effects. Major suppliers may put crucial trade accounts on ‘stop’, causing disruption to the day to day trade of the business, whilst financial arrangements maybe suspended leaving businesses unable to fulfil their current order book. An early TTP arrangement provides businesses with the critical breathing space, without losing the confidence of key stakeholders, enabling the business to carry on trading through a difficult period.
3. Develop a strategy – Acting under the constant risk and pressure of imminent legal action from HMRC, a business owner can often make decisions to obtain a quick fix. Communication with HMRC is key to ensure action is delayed in order to allow a strategy to be developed to focus on the long-term turnaround of the business.
How can Corporate Strategies help?
With a 95% current success rate, we have a strong reputation with HMRC and have assisted a number of companies in both complex and distressed situations. By ensuring that HMRC get the appropriate information, presented in the right way and in a timely manner, we can significantly improve their willingness to support the terms offered.
Whilst helping to secure the ‘TTP,’ Corporate Strategies is able to offer a wealth of additional support and advice which can help avoid the failure of a business and develop various strategies to overcome the challenges faced. We work with a team of experts who are able to assist with raising additional finance, unlocking monies tied up in bad debts or planning vital restructuring and reorganisation.
To find out more about the debt advisory support we offer our Lifecycle members, click here.
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