Case studies
Case study: Navigating HMRC complexity to secure a long-term lifeline for a haulage business
Background
A North East based haulage business had been operating under sustained pressure from a series of macro-economic challenges. The significant and rapid increases in fuel prices, driven by instability in the Middle East, had a direct and material impact on the company’s cost base. At the same time, the business incurred over £20,000 in legal fees to resolve a complex legislative dispute, tying up cash reserves at a critical time. The simultaneous departure of two key members of staff created further instability, reducing productivity while driving up recruitment and overtime costs in equal measure.
With cash flow under considerable strain, the company had previously attempted to manage its HMRC position by agreeing its own Time to Pay arrangement (TTP). However, the first payment was missed and an outstanding VAT balance accrued, leaving the business in a more difficult position than before. The combination of a failed TTP, ongoing liabilities and an unpredictable trading environment meant the directors needed specialist support to find a workable path forward and protect the five jobs that depended on the business continuing to trade.
Our Approach
The client was introduced by their accountant to Restructuring and Insolvency Director, Phil Morton, who engaged the Business Advisory team. Business Advisory Analyst Ben Powell took the matter forward and, given the history of a failed arrangement and the outstanding VAT balance, re-engaged HMRC with a careful and well-prepared approach. Leonard Curtis acted swiftly, contacting HMRC early to understand the company’s current position and liability in full. Critically, the team secured an extension to the deadline for HMRC to continue its enforcement action, creating the time needed to properly assess affordability and draft a credible proposal.
Throughout the process, Leonard Curtis maintained consistent and transparent communication with HMRC, keeping them updated at every stage. This proactive approach helped to build confidence with HMRC that the business was engaging seriously and that any arrangement put forward would be both realistic and sustainable.
The outcome was a formal Time to Pay arrangement covering the full £230,000 liability, structured over 81 months through to January 2033. For a business that had already seen one arrangement collapse, securing a repayment plan of this length is a significant result and a reflection of the thorough groundwork put in ahead of the negotiations. Five jobs were protected and the business was given the runway it needed to stabilise and move forward.
The director’s response on hearing the outcome said it all: “the best birthday present” and “you have been a life saver.”
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Leonard Curtis is a trading style of Reach Commercial Finance Limited, registered at Riverside House, Irwell Street, Manchester, M3 5EN. Company Register number is 09056450. Reach Commercial Finance Limited is authorised and regulated by the Financial Conduct Authority, FRN: 753686. Reach Commercial Finance Limited is an authorised credit broker and not a lender. We work with an unrestricted number of lenders to find a potentially suitable arrangement for your consideration. ICO registration ZA069234 and you can check via www.ico.org.uk. We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency we work with the following commission models: fixed fee, fixed rate of commission, percentage of the amount you borrow and rate for risk (this is based on the risk profile of the business). Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey. Privacy notice.
Leonard Curtis Legal Limited is a limited company, registered in England and Wales with registered number 09820186. Registered office: Riverside House, Irwell Street, Manchester M3 5EN. Leonard Curtis Legal Limited is registered with the Solicitors Regulation Authority with number 626004.