Background:
- East Midlands based pub
- Faced mounting VAT and PAYE arrears and risk of enforcement action
Referred to the Leonard Curtis business advisory team by their accountant, the client had fallen behind on VAT and PAYE payments. The business owner had tried to negotiate with HMRC to agree a Time to Pay (TTP), but their only option was a six month arrangement, which was unviable given the business’s cashflow constraints.
We worked closely with the director to develop a realistic repayment plan to meet HMRC’s criteria and negotiate a longer-term arrangement. While drafting our proposals, a Field Force Officer visited the client with a view to either demanding payment or to commence the Taking Control of Goods process, whereby assets are seized and sold at auction. Recognising the urgency, we immediately engaged with HMRC and successfully diverted the case to one of our preferred teams.
Outcome:
A 50-month arrangement was secured, with the total liability addressed of approximately £135k. This agreement included both the existing arrears and the latest PAYE and VAT liabilities, an unexpected but beneficial outcome for the client, as it delayed any payment to HMRC until the arrangement’s start date the following month. The structure provided immediate cashflow relief and allowed the business to continue trading without the pressure of aggressive repayment demands.
By replacing an unworkable six-month plan with a sustainable 50-month arrangement, we removed the threat of enforcement action and gave the client the stability to manage their obligations in a controlled way.
Early advice can often prevent serious liabilities and keep more options open. Our team is here to help navigate challenges and identify practical solutions, enabling you and your business to move forward with purpose.
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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 a 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.