Leonard Curtis supports UK manufacturer with future growth thanks to multidisciplinary approach. Initially referred to Phil Morton at the Leonard Curtis Loughborough office, the client successfully avoided insolvency after Phil identified the opportunity for a more strategic alternative.
The company, a bespoke furniture manufacturer, was facing significant cashflow challenges. These issues stemmed from a decline in demand for premium products and several bad debts, within a difficult economic climate. As a result, working capital was strained, and the company accrued a £305,000 liability with HMRC, putting its ability to meet tax obligations at serious risk.
A HMRC Field Force Officer was assigned to the case and initially demanded a large upfront payment. With the business unable to meet these immediate demands, the risk of enforcement action was high.
Upon engagement, our team assessed the risks and discussed a potential Time to Pay (TTP) arrangement during an initial consultation with the client. Given the nature of the case and the stance of HMRC, the client was advised that a 24-month term was likely the maximum term achievable.
Recognising the need for a more collaborative environment, our strong professional rapport with HMRC teams allowed us to reframe negotiations and present a credible, forward-looking proposal with our client’s best interest in mind. Our team worked closely with the company's directors to structure a plan that reflected current capabilities and future plans for recovery.
As a result of strategic negotiation, we successfully secured a 42-month TTP arrangement for the £305,000 debt. This agreement allowed the company to avoid insolvency and stabilise its operations. Importantly, 23 jobs were preserved, and the business is now pursuing a growth strategy. It has established new partnerships and is looking to target new markets with newly developed product models. This strategic diversification is projected to increase annual turnover by £500,000, which will help ease future cashflow pressures.
This case illustrates our capability to navigate complex financial challenges, safeguard employment, and position businesses for long-term recovery. Our practical approach and trusted relationships delivered a sustainable solution for a valued UK manufacturer.
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