Corporation Tax - Late payment, they came knocking at door, URGENT HELP REQUIRED!!!!

[Tim2007]

I'm not in position to pay my company's Corporation Tax in full. I've been communicating with Collector regularly to give me more time which they did. I paid some amount which irks them and they came knocking at door threatened to send Army in next 7 days (Read Distraint).

 

No matter what they are going to do i can't pay in full, I can only pay in installments at regular intervals, which obviously, HMRC will not accept.

 

What are my options with Distraints and Court?

 

Can I make them agree for installments?

 

Any help?

[baileyboy]

They will seize your company assets and auction off. Strip the meat off your bones, then come back for the skin. Best advice is pay up anyway you can. Borrow money from somewhere if no other option is available. Sorry, but you don't tangle with this lot.

[GuidoT]

My experience tells me that you should be able to negotiate something with them in the way of instalments, be upfront with them - they do not want to destroy your business because that way (unless you have considerable assets within it) they get nothing.

 

HMRC recently lost there preferential status when companies are liquidated, they are now left in the que with the rest of the other creditors.

 

Do not deal with them direct, your accountant (I presume you have one) should deal with them. Most accountants will have experience of negotiating instalments with the revenue.

 

There are 2 good reasons why you should not deal with HMRC direct:

1. They can ask you questions direct and catch you out and give you no time to consider an answer or seek advice

2. The tax laws in this county are heavily weighted in favour of revenue, therefore you need someone in the know (an accountant) to even up the balance. The revenue will handle matters differently when dealing with a lay person over accountant, i.e. the revenue know accountants know more than lay persons

 

I am sure any revenue employees here will disagree, but this my personal view and experience.

[anyoldnamewilldo]

My experience is a combination of BB and Guidot. Depends on what youv'e got. If youre still trading and making money they'll skin you alive unless of course youv'e got anything in writing about the arrangement you made and most importantly you stuck to it and the late payment was a first and preferably with a reason.. If youve got nought then they'll take what you offer as long as it appears to be the best you can do. I was very lucky I phoned and got a Revenue employee with a sense of realism and sorted it then and there. Not much heart in the revenue though,takes a special type of person! Personally I would make sure that I knew exactly what my accountant said on my behalf,if there was a meeting I would go with him. Its no good worrying afterwards about whether you could have handled it better!Good luck I really feel for you.

[Tim2007]

Thanks all for reply.

I've already paid about 1/4th of owed money. Paid some with this current letter and also asked for monthly installment payment.

 

I'm trading and in business.

 

Arranging the fund is always going on but obviously it will take some time. Informed in letter the same.

 

I'm thinking of worst case scenario.

[Tim2007]

Accountant is incompetent so I'm on my own. they say they are the best accountant in the industry for me they are just bunch of incompetent mor..s

[joneshousehold]

Always be very careful about what your accountant is saying on your behalf. If yours is incompetent try and get another, preferably a personal recommendation. I'm afraid qualifications and membership of societies are no guarantee of competence.