Threats from HMRC or other companies when not in the wrong
Amongst the principle causes of sleepless nights for company directors are the threats received from other businesses and limited companies, and possibly from HMRC. It is not unknown for HMRC to confuse personal and corporate debts or assess taxes outstanding based on an assumed turnover which does not reflect the normal trading of the business concerned. If this is the case, notwithstanding how much you believe any claim received is wrong, you must never ignore the HMRC or creditor threats. In the worst case, the pursuing creditor has the ability to make you bankrupt as an individual or to wind up your limited company. Please seek help from a seasoned insolvency company such as Chamberlain & Co before it’s too late.
In one example Chamberlain & Co was approached by a construction company which had on the day in which it’s director contacted Chamberlain & Co become subject to a winding-up order on the petition of HMRC for taxes which were entirely estimated. Prompt action by Chamberlain & Co on the same day allowed the company to successfully apply to the court for a stay of the winding up order and after that enter a Company Voluntary Arrangement (“CVA”) to deal with the remainder of its debt while outstanding tax returns were submitted to HMRC. Following the submission of the outstanding returns, it was established that HMRC owed monies to the company as a result of earlier overpayments by the company! A tax refund was secured and following the completion of the CVA the company was handed back to the directors.
As Insolvency practitioners, Chamberlain & Co are able to rescue your business and take the stress off your shoulders. We are corporate turnaround experts with 20 years of expertise, with offices in Leeds, London, Sheffield and York, we have teams with the experience from largest accountancy firms in the country.
Any person or company who is being chased for a debt they do not owe should go straight to the complaints department of the actual service provider or to HMRC direct, rather than the debt collectors employed by that creditor.
Some great tips to help your business in the event of someone chasing you wrongly for payment:
• You must keep a record of any conversation(s) with the creditor
• the name(s) of the creditor’s representative you have spoken with
• Retain copy correspondence etc
These all act as evidence that you tried to resolve the issue.
• If court proceedings are issued against you, make an application to the court firstly for a stay of the proceedings, and secondly for an order that, to cover the costs which are likely to be incurred by both parties in dealing with the matter by means of court proceedings, both parties should pay sufficient monies to cover all costs into a third party account.
Chamberlain & Co can refer company directors to an experienced dispute resolution lawyer for expert guidance.
Have you ever been threatened by HMRC or another company when you’re not in the wrong?
Comment below, we’d like to hear your horror story!
