A leading insolvency expert has warned firms in danger of going into liquidation not to stick their heads in the sand and hope their debt problems go away.
Tony Mitchell of Cranfield Business Recovery, based at Hill Top in Coventry city centre, says it is vital companies agree to structured repayment deals with HM Revenue & Customs before missing any due dates - particularly as the Government toughens its stance to restore public finances.
Mitchell’s comments follow the results of a survey carried out by a leading accountancy firm which reveals HM Revenue and Customs was behind almost half of all court petitions - 43 per cent - aimed at forcing companies into compulsory liquidation to recover debts over the last six months.
He said: “During 2009 HM Revenue and Customs were offering ‘time to pay’ agreements to help businesses during the recession, but the feedback I am getting from accountants in Coventry and Warwickshire is that it is getting harder to agree structured repayment deals and it is very difficult if a company is already behind with its tax payments.
“I believe the tough stance will only increase, particularly after the General Election later this year, and those which already have deals in place are still very vulnerable because if they miss any payments after an agreement has been reached they will find it almost impossible to renegotiate for a second time.
“The clear message is to try and reach a deal before missing any due dates rather than afterwards and for company directors to speak to their advisors or seek advice from specialists as early as possible in order to understand the options available to them, and not to stick their heads in the sand and hope the problems will go away.”
Media enquiries:
Pete Squires
Advent Communications
2 Edison Building
Electric Wharf
Sandy Lane
Coventry CV1 4JA
Tel: 024 7663 3636
http://www.advent-communications.co.uk |
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