Many companies each day receive warning letters from HM Revenue & Customs for unpaid taxes. The letters range from a reminder that tax is outstanding to more demanding and formal letters demanding payment of outstanding taxes within seven days. This letter is known as the seven day warning letter. It normally states that if the taxes are not paid within seven days that HM Revenue & Customs will start legal proceedings which may result in a winding up petition being issued against the Company and if the Directors take no action the Company may end up in Compulsory Liquidation.
Once HM Revenue & Customs issues a winding up petition it will state on the face of the Court document the date of the hearing in Court, which is normally between 6-8 weeks later, where a Judge will decide whether the Company should be placed into Compulsory Liquidation.
Once the petition has been issued and before the Court hearing, details of the petition are advertised in The London Gazette and on this day it normally causes the Company to cease trading as the Company’s bankers freeze the Company’s bank accounts and customers learn of the pending action and may stop placing orders in fear that they may not be fulfilled.
If a Director is receiving warning letters from HM Revenue & Customs then don’t delay and take urgent advice NOW. In many cases it does not need to be the end of the road when a Director receives such letter. Directors are often surprised at the options that are still available to them even at this stage. Contact us to arrange an urgent FREE OF CHARGE advice meeting.
Some myths that Directors have at this stage:
“HM Revenue & Customs have been very supportive and I have used up all the goodwill with HM Revenue & Customs and I have left them very little option other than to issue a winding up petition”
“My bankers have declined any further borrowings and this leaves no alternative to raise any finance”
“Even if I can pay HM Revenue & Customs, I have other creditors and employees that I would be unable to pay”
“I am unable to recover from the Company’s credit rating substantially reducing as a result of the winding up petition being in the public domain”
“One of our key suppliers has put us on stop and we are unable to trade without the support of this key supplier”
“One of our key suppliers has enforced Retention of Title and collected all their goods and the letter from HM Revenue & Customs is the final nail in the coffin”
In all these scenarios we have found solutions which has allowed the business doors to remain open and for the business to move forward. Liquidation does NOT have to be inevitable. RPG Business Recovery are experts in providing good sound advice when it is needed the most.
Remember – only Licensed Insolvency Practitioners can assist you with formal insolvency appointments (this is a legal requirement) and are best placed to provide insolvency/debt advice. Licensed Insolvency Practitioners are highly regulated and have professional indemnity insurance. Unfortunately, there are a number of unregulated “debt advisors” advertising on the web that demand payment for their costs and then have to refer you to a Licensed Insolvency Practitioner for any formal insolvency who may also require payment and you could effectively end up paying twice unnecessarily. In our experience, many debt advisors provide poor or wrong advice and in some cases encourage Directors to break the law.
RPG Business Recovery is part of Royce Peeling Green Limited (a firm of Chartered Accountants) and was established over 100 years ago (established in 1911). RPG have offices in Manchester, London and North Wales. All Insolvency Practitioners at RPG Business Recovery are authorised and licensed by The Institute of Chartered Accountants in England and Wales.
At RPG Business Recovery we highly recommend that Directors should always take advice as early as possible as this gives us the greater chance of being able to save your business and avoid a business closure. Please feel free to contact us for a FREE no obligation advice meeting or if you prefer you are welcome to contact our Licensed Insolvency Practitioners directly. Our Insolvency Practitioners are Alan and James. You are welcome to contact either Alan (Mobile 07580 885750 or email firstname.lastname@example.org) or James (Mobile 07717 001087 or email email@example.com) directly.