Owner managers face rent and tax arrears in January
5/1/2009
Many businesses will face increased pressures on their cashflow in January with quarterly VAT payments falling due, coinciding with their rent payment warns Stephen Fern, Director at LC Corporate Strategies, the turnaround arm of national corporate recovery firm Leonard Curtis.
"With the expectation of reduced sales in December due to the economic climate and Christmas shut down of many businesses and industries, there will be a greater stress put on a company's cashflow," says Fern
Fern is urging owner managers and directors to pro-actively raise any issues with payment to HM Revenue and Customs (HMRC) and their landlords early. He continues; "Creditors are more likely to be understanding of payment problems if you approach them at the earliest sign of trouble. For instance, HMRC now operates a Business Payment Support Service, to assist those companies with short-term cash flow problems and a relatively low value of arrears by spreading their payments over a period sustainable by the Company. Similarly, a landlord would rather retain a tenant than have an empty property, particularly at the moment, which may allow some flexibility in payment."
LC Corporate Strategies works closely with HMRC and businesses struggling with significant VAT and PAYE arrears, assessing a company's viability and presenting achievable forecasts with a proposed payment plan included to secure a time-to-pay arrangement.
Fern concludes: "The most important thing for owner managers to remember is to take action early. The current climate means customers, suppliers and trade insurers are far more sensitive to any problems; far better to take control of the situation so you have time to fix it, than risk someone else taking control away from you and presenting you with a winding up petition."
For further information on turnaround techniques and advice on HMRC arrears visit www.corporatestrategiesplc.com
