CVA Company Voluntary Arrangement
Today the business landscape can be tough and unforgiving, and many businesses encounter financial problems for a large variety of reasons. If a company owes several creditors money that is not yet payable, they are already in a highly unfavourable position. However, if they also have tax debts, they will find the tax man to be very unrelenting.
It is hard for an already struggling business to survive under the penalties imposed by government agencies they owe money to, not to mention the time and hassle spent away from the company attending court and trying to get some sort of debt relief. A Company Voluntary Arrangement may be the best option for a company that is struggling to pay creditors and government agencies, and is something that a professional Insolvency Auditor may be able to help you with.
What is a Company Voluntary Arrangement?
A Creditors or a Company Voluntary Arrangement can temporarily suspend your debts, including tax debts that you owe to the appropriate government agencies. However, some people think that this is a magic formula to relieving their company of taxes; this is certainly not the case. Firstly, it is a long process involving an Insolvency Practitioner and the Courts. Secondly, it can be a very costly process. Thirdly, there are no guarantees that a CVA will be approved. Finally, the government bodies have significant authority, and can sometimes find ways round a company’s CVA, so they may need to continue to pay money owed to these bodies.
What to do if you think your company may need a CVA.
If you are a struggling business in London or the surrounding areas, it is recommended you contact a professional Insolvency Auditor, who can help you assess your business’ situation and determine whether a CVA would be of benefit to your company.
Business Insolvency Helpline 0800 24 0800
Filed under: CVA
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