One of the first signs that an SME is starting to get into difficulties is if payments of PAYE/NIC or VAT to HMR&C get into arrears. If not dealt with promptly and correctly this can lead to late payment penalties being imposed and, in extreme cases, to winding-up procedures being set in motion.
Having said this HMR&C are not unaware of the problems experienced by SME's, especially in the current economic conditions. Presented with the proper facts and a sensible solution they will normally agree to a staged repayment arrangement, especially in the case of a "first offence".
Here at BFS we offer our clients a service which includes calculation of a suitable payment schedule and negotiation of an agreement with HMR&C based on that schedule. If your business has this problem we would strongly advise an early call to us at Business Finance Services Ltd so that we can ensure that a problem does not turn into the proverbial crisis.