Understanding Company Debts to Reduce or Eliminate
Debts, debts, and more dam company debts, as well as personal debts now beginning to mounting up because of my business debts. How can I reduce or eliminate my company debts and still keep my business or if I decide just close the company and walk away. How and what do I need to do just to get a breathing space, is there someone who I can trust to give me the best advice?
Company debt can be very damaging for any company if not dealt with promptly and correctly. Company debt with the Inland Revenue and Customs and Excise VAT can present serious consequences not only for the company but also may present future consequences for the directors of a company. The directors in effect are tax collectors for the tax man and vat man and every quarter or every month depending on arrangements which you have in place, you are meant to forward these taxes you have collected on behalf of the tax and vat man to the authorities.
Well that’s the theoretical side of the plan but in reality when you have other creditors and workers wages to consider on a day to day running of your business, you get pressured into paying money that was set aside for the taxman or vat man then gets used up in the day to day running of your company with the best of intention of repaying later. But that’s not always the case in practice.
Reality, Penalties, Interest and other Charges
When you have business debt problems you have to become proactive and take professional advice from an Insolvency Auditor who can best advice you with the options open to the company if you are looking to grow your business whilst dealing with the company debts at the same time. Money owed to any government agency such as tax or vat will incur penalties, interest, and other charges relating to late payment or non payment of debts.
Tax debt or vat debt, in both cases the authorities will usually work with the company and its directors who seek help for a payment plan. As soon as you see the problem getting worse start a dialog with the Inland Revenue or Customs and Excise to work out a plan to rectify the situation. By ignoring letters and phone calls from the authorities all you are doing is setting yourself up hardship. Speak with your accountant or if the situation call for it have a friendly chat with an experienced Insolvency Auditor who will only be too happy to answer and address your concerns.
Professional Company Debt Advice
If your company is struggling financially and is unable to pay its tax and vat bill as well as other creditors then you will need to call in an Insolvency Auditor who will help you the directors to minimize your personal liabilities in the fallout or the liquidation of the company.