Businesses unaware of help available on PAYE and VAT debt

19/1/2009

Businesses with a turnover of £1 - 3m are most likely to suffer from VAT and PAYE arrears, but are failing to take advantage of the help that could be available according to a survey from LC Corporate Strategies, the turnaround arm of national corporate recovery firm Leonard Curtis.

A confidential online survey carried out by LC Corporate Strategies, showed that manufacturing companies are the most likely to suffer from Crown arrears in excess of £200,000, but are least aware of the level of help now available to tackle VAT and PAYE debt. The survey included businesses from a broad range of sectors including; Manufacturing, Printing, Computer services, Engineering, Recruitment, Construction, Leisure and entertainment and Vehicle and equipment hire.

Stephen Fern, Director at LC Corporate Strategies, explains: "As a part of its Pre-Budget Report, the Government launched the Business Payment Support Service, an initiative to encourage companies to be more proactive when faced with Crown arrears of £10,000 or less due to short term cash flow pressures. At the first signs of trouble, owner managers should be making the most of this service.

"If the arrears are in excess of £10,000, or the problems the business is facing look more endemic, managers should be seeking advice as early as possible. Most recovery and turnaround firms offer free hour advice sessions, and some have extensive experience working with HMRC to help struggling businesses negotiate time-to-pay arrangements.

"We have successfully negotiated on behalf of a number of clients, where we can demonstrate a business has a viable future with the continued support of key stakeholders.  Once a payment plan has been agreed with HMRC it allows the management team to focus on running the business and achieving their forecasts."

For more help and advice on Crown arrears contact Stephen on 0161 831 0242 or at sfern@corporatestrategiesplc.com

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