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By Patsie23
#224190
I had a time to pay agreement set up with HMRC. However I have been unable to stick to the agreed payment plan and maintain the on going tax bills. Now HMRC are demanding the arrears in full. The company has other debts but HMRC are probably about 50% of the total debt which is around £60k. If I propose a CVA now will HMRC accept even though I have already failed an agreement with them in the past?

Many thanks for any advice.
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By Luke
#224195
Hello Patsie23 and welcome to the forum

As far as I am aware there is no reason why HMRC will not accept a sensible CVA proposal even if you have broken time to pay agreements with them in the past. The reason for this is that an independent insolvency practitioner will be involved with the CVA and do a proper review of the company's circumstances. They will then be able to put over the argument that the CVA gives a better return than the company simply being liquidated. There is every reason to suspect that HMRC would accept this.
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By James Falla
#224203
Hi Patsie23

As Luke has said if the CVA you propose for your company is reasonable and backed by an insolvency practitioner then HMRC should accept it. Ultimately by proposing a CVA you are saying that the company is insolvent and unless the agreement is accepted you will be forced to liquidate. This would mean that HMRC will lose out even more which they will want to avoid if they can see an alternative. However if they agree the CVA they will probably want a guarantee that the IP will liquidate in the event that you do not keep up the agreed payments.