HMRC Debt Advice for Companies

If your company owes money to HMRC or is struggling to keep up with its tax liabilities, getting advice early can give you more options.

HMRC debt can build up quickly, whether through unpaid VAT, PAYE, Corporation Tax or a combination of liabilities. If payments are missed, HMRC may take enforcement action and, in more serious cases, seek to wind up the company.

The important thing is not to ignore the problem.

At Umbrella.UK Insolvency, we speak to company directors facing HMRC arrears and cash flow difficulties every day. Our Licensed Insolvency Practitioners can help you understand your company’s financial position, the options available and the best way forward.

Owe HMRC money? Speak to us confidentially about your company’s options.

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Call 01625 546 240 for immediate help

What happens if my company owes HMRC money?

Owing money to HMRC does not automatically mean your company has to close.

The right course of action will depend on factors including how much your company owes, whether it can meet its other liabilities and, importantly, whether the underlying business remains viable.

Depending on the circumstances, options may include negotiating additional time to pay, restructuring company debts through a formal insolvency procedure or closing the company through a Creditors’ Voluntary Liquidation (CVL).

The earlier you seek professional advice, the more opportunity there may be to consider the available options before HMRC takes further action.

Find advice for your HMRC debt problem

My company can’t pay HMRC

If your company cannot pay its HMRC liabilities when they fall due, this may be an indication that it is experiencing serious cash flow problems or could be insolvent.

Read guide: Company Cannot Pay HMRC – What Should I Do?

VAT arrears

VAT arrears can quickly become a significant problem, particularly where a company is already experiencing pressure on its cash flow.

Read guide: Company Cannot Pay VAT – VAT Arrears & Insolvency Advice

PAYE arrears

If your company is falling behind with PAYE or National Insurance payments, it is important to understand the potential consequences and deal with the arrears as early as possible.

Read guide: Company Cannot Pay PAYE – PAYE Arrears & Insolvency Advice

Corporation Tax arrears

Unable to pay your Corporation Tax bill? Find out what this could mean for your company and what options may be available.

Read guide: Corporation Tax Arrears – What Can a Company Do?

HMRC Time to Pay arrangements

A Time to Pay arrangement may allow an eligible company to repay its HMRC debt over an agreed period rather than in one payment. Whether this is appropriate will depend on your company’s circumstances and ability to maintain the agreed repayments.

Read guide: HMRC Time to Pay Arrangements for Companies

HMRC enforcement action

Ignoring HMRC arrears can result in the situation escalating. Understanding what stage HMRC has reached and acting promptly can be important in protecting the options still available to the company and its directors.

Read guide: HMRC Enforcement Action Against Companies

HMRC winding-up petitions

A winding-up petition is a serious escalation. If your company has received a statutory demand, winding-up petition or other formal action from HMRC, you should seek professional advice urgently.

Read guide: HMRC Winding-Up Petitions – What Should a Company Director Do?

Liquidating a company with HMRC debt

A company can enter liquidation when it owes money to HMRC. If the business is no longer viable and cannot pay its debts, a Creditors’ Voluntary Liquidation may provide an orderly way to close the company and deal with its creditors.

Read guide: Can I Liquidate a Company With HMRC Debt?

CVAs and HMRC debt

Where the underlying business remains viable, a Company Voluntary Arrangement (CVA) may, in appropriate circumstances, allow a company to restructure its debts and continue trading.

Read guide: CVA for HMRC Debt – Can a Company Use a CVA to Pay HMRC?

Can directors become personally liable for HMRC debt?

A limited company’s tax debts normally belong to the company rather than its directors. However, there are circumstances where directors can face personal liability or other consequences.

Read guide: Director Liability for HMRC Debts

Can HMRC force my company into liquidation?

Yes. If a company owes HMRC money and the debt remains unpaid, HMRC can ultimately take action to have the company wound up.

However, reaching this stage does not happen simply because a payment has been missed. The circumstances and stage of enforcement matter.

If HMRC is already taking formal action against your company, time is important. Seeking advice quickly can help establish what options, if any, remain available.

Read guide: Can HMRC Liquidate My Company?

What are my company’s options?

There isn’t one solution for every company with HMRC debt.

If the business is fundamentally viable but experiencing temporary cash flow problems, options could include an HMRC Time to Pay arrangement or, where wider debts need restructuring, a Company Voluntary Arrangement (CVA).

In some circumstances, Administration may be considered where there is a viable business or assets to protect and the statutory purpose of Administration can be achieved.

If the company is insolvent and there is no realistic prospect of recovery, a Creditors’ Voluntary Liquidation (CVL) may be the appropriate route.

A Licensed Insolvency Practitioner can assess the company’s circumstances and explain which options are realistically available.

Why acting early matters

HMRC debt rarely becomes easier to deal with by leaving it.

Taking advice early can give you more time to understand the company’s financial position, consider whether the business can be rescued and make informed decisions about your responsibilities as a director.

It can also help you avoid making decisions which could worsen the position if the company is already insolvent.

Confidential HMRC debt advice for company directors

If your company is struggling with HMRC debt, you do not have to work out the next step alone.

Umbrella.UK Insolvency provides confidential advice to company directors across England and Wales. Our team can review your company’s circumstances, explain the options available and help you decide on the most appropriate way forward.

Whether you have recently missed an HMRC payment or HMRC is already taking enforcement action, seeking professional advice sooner generally means there are more options to explore.

Owe HMRC money?

VAT arrears can quickly become a significant problem, particularly where a company is already experiencing pressure on its cash flow.

Don’t wait for HMRC to take further action.

Speak confidentially to a Licensed Insolvency Practitioner about your company’s options.

What our clients tell us

Excellent service from Sarah and the team. Efficient and made everything easy and so professional. Thank you so much - would highly recommend umbrella.UK Insolvency

Charlotte B

Clear and efficiently managed service. Nice job thanks Tom & Sarah at Umbrella.UK Insolvency.

Doug Q

Tom Fox has been very professional, informative and helpful during what has been a difficult time. He’s been at the end of the phone when needed and has provided clarity and kept structure at all times in something I didn't really understand at the start of my process. I would absolutely recommend Umbrella.UK Insolvency!

Julia T

Umbrella.UK Insolvency helped liquidate our limited company in a very straightforward way. The team were very helpful.

Martin F

I would highly recommend using this service. Tom &Sarah were professional and made my MVL painless. The advice they gave me was explained in such way a novice like myself could understand. Many thanks to the team.

Martin J

Tom was incredibly helpful as I prepared to liquidate a couple of companies - clear advice, a respectful approach to both myself as director and the creditors, and a reasonable fee structure vs many of the national IP's I spoke to whilst researching who to work with.

Mike S

When I recently needed to liquidate a company, I was so lucky to have found Thomas Fox and Sarah McClean to achieve this for me. They explained the whole process to me in a way that I could understand and guided me through what I had to sign and when this needed to be done in a friendly manner. I would not hesitate to recommend them.

Tanya C

Both Tom Fox and Sarah McClean made they very best to make the liquidation process as smooth as possible. I liked that they laid out the plan for next 2 years upfront and explained it in plain English. Very helpful at all stages from beginning to final closure. Best Insolvency Practitioners ever!

Lukasz

Great service provided by Tom and Sarah. They acted quickly to support my liquidation and provided expert guidance throughout. I really felt like they continually went the extra mile and they were very patient in explaining stuff with me too. Highly recommend…a highly personalised service! Thank you

Craig S

I recently needed to liquidate a company and after doing some research I came across Umbrella. Within minutes of talking to them on the phone I knew I had chosen the right company. They handled everything for me, I simply had to sign the various forms they sent me. I dealt with Sarah McClean there who was absolutely brilliant. Nothing was too much trouble for her, she was super efficient, kept me informed at every step in the process and came across as a lovely person when I spoke to her on the phone. I would have no hesitation recommending Umbrella for your liquation needs.

I Francis

Tom Fox was incredibly helpful as I prepared to liquidate a couple of companies - clear advice, a respectful approach to both myself as director and the creditors, and a reasonable fee structure vs many of the national IP's I spoke to whilst researching who to work with.

Mike S

I engaged Umbrella accountants to oversee a Members Voluntary Liquidation for the small consultancy business I've been running. The team talked me through the MVL process, steps and requirements. The paperwork involved was well explained and straightforward, with the initial disbursement of funds handled very quickly and professionally under tight deadlines.

Brendan N

I extend my appreciation of your professional efficiency in handling my company business and herewith say thank you.

Maxine R

Umbrella.UK Insolvency guided me as sole Director of my small limited company, and the shareholders, through every step of a Members Voluntary Liquidation in a very efficient manner. The steps required were clearly laid out and proactively managed by their licensed practitioner. From first meeting through to an interim distribution of funds to shareholders took only a few days in our case. Thereafter, Umbrella will be managing all of the downstream actions required to complete the process with HMRC and Companies House, through to the final discharge of the company.

Alex O

I'd just like to thank Tom for your help with the closure of my company. You have been highly efficient and very professional throughout. Thank you.

Tony D

First of all, I would like to say a BIG Thank You for all of your assistance over the past year. I would not be in the positive state of recovery without Umbrella Insolvency. Your care and assistance at the application stage last summer, along with the advice throughout the year, has been great. I would not hesitate to tell anyone in my negative situation where to turn to.

Mr TM

Before I came to Umbrella.UK Insolvency I was in a bad place mentally due to debt because I believed I would be in my current situation for a long time to come. Umbrella.UK Insolvency walked me through my options and helped me pick the best one. I am genuinely amazed at what they managed to do for me and can now afford to live comfortably, and without the constant worry of debt looming over me.

I engaged Tom to arrange an IVA for me after I ran into financial difficulties as a result of the closure of my company. He introduced me to Sarah and both of them as a team worked tirelessly through Lockdown to get the best outcome for me and my family. Both Sarah and Tom were patient, thorough and incredibly compassionate for our situation. They attained the best outcome for us and I couldn't speak more highly of them. Thank you to you both, Amazing work.

Thank you very much for your assistance in a successful proposal. We are ever so grateful as this is a chance to transform our lives; or rather you have given us a second chance to have our lives in order. Thank you for your patience and perseverance throughout that you showed.