Well, VAT is not going away. Your sales see you gather the VAT from your buyer, so why is it that so many UK companies find it hard to pay on time?
The easy answer is that cashflow is not this straightforward, never will be and never has been.
The best advice about VAT arrears is to speak to HMRC and seek a time to pay plan. HMRC will generally give you some grace. However, don’t abuse this and don’t think HMRC will give you an arrangement every time.
Also, don’t default on any arrangement, it will only end in teers. HMRC have the power to seize goods, property and instruct bankruptcy proceeding.
This is the good bit, so hold on to your seats…
If we could offer a solution which looks like;
- Payment of VAT or VAT arrears direct to HMRC
- A structured repayment on a weekly basis over a 3 or 6 month term
- Poor credit is not an issue
- CCJs are not an issue
If you take this as an alternative to seeking a time to pay arrangement then the advantages start to become clear. If you have also had a previous arrangement or are worried about defaulting on an existing arrangement, then the benefits start to become obvious.
How Can This Be Done?
Lime Consultancy have a bespoke arrangement where we can get these deals sanctioned within short timescales. Add to this that we use our expertise to get things properly structured then the whole scheme becomes beneficial.
Don’t worry about how it can be done, we can do that.
If you have, or know, a business with VAT concerns then please get in touch and let us do the rest.
If you have any comments then please add them above, or contact us via the website.
By David Farmer