Paying the VAT bill ...05th August 2008
I found it interesting to read in the accountancy press recently, that there has been quite an increase in "time to pay" deals with the VAT man!
Many businesses often find that the quarterly VAT bill creates quite a spike in their cash flow, but the suggestion is in these difficult times that with tight cash flows this can be a bridge too far.
The article suggested that HM Revenue and Customs were open to making arrangements to pay by instalments, but will charge interest. It is certainly our experience that they will allow this if a proper approach is made, but with VAT they rarely let it roll over to the next quarter. Which in effect means you have three months to get up to date.
The trick is not to bury your head in the sand but plan forward and approach HMRC in good time and with a well thought through proposal. We have significant experience of dealing with these situations as do our colleagues at KSA, who run the fabulous web resource companyrescue.co.uk where you can find further information.
Doing a time to pay deal like this is though only a very short-term fix. In planning and thinking your position through you need to consider if perhaps your problems are deeper - in which case there could be better and more appropriate solutions.
At Insight Associates we have 16 years of experience of dealing with businesses which are financially distressed, in all ways and for all reasons. If we can help give us a call 0800 180 4265.