Beware,the,HMRC,causing,proble finance, share, loan Beware the HMRC causing problems for Pre Pack Administration
Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track
Beware the HMRC causing problems for Pre Pack AdministrationPre-pack administration or phoenixing can be a useful business rescue solution. However, businesses may be prevented from taking advantage of this option because of an HM Revenue and Customs requirement for a VAT deposit. If a business is in financial difficulty, one of the solutions which may be considered is pre-pack administration (commonly known as phoenixing). Pre-pack administration enables a new company to be set up which is then used to buy the assets of the old failing business. The new company can then trade on without the burden of the old business's debts. The pre-pack process is normally implemented by the old company directors with the intention that they will be named as directors of the new Phoenix business. Generally this does not cause an issue. However, problems may arise where the old business has significant tax debts. Where a director of a business has a history of non payment of tax debts, it is possible that HMRC will want a security deposit before allowing the new company to be VAT registered. Unpaid tax debts part and parcel of phoenixing A history of no payment of tax is not unlikely to occur in the case of pre-pack administration because the directors of the old business are the same as those starting the new. The old business will have been liquidated leaving behind unpaid tax debts such as VAT and PAYE which are thus associated with the directors. It is possible that the requirement for a VAT security deposit can be avoided if the new phoenix company is set up with different directors. However, this situation is unusual as it will be the old company directors who instigate the process and want to operate the new company. As such, the requirement for a VAT deposit must be anticipated. Value of required deposit will vary There is no prescribed formula for calculating how much the required deposit will be. However, it is likely to be equal to the amount of VAT which would have been paid by the old business over a period of 4 to 6 months. If this sum cannot be paid, then the future of the new business will be in jeopardy as it will be illegal to trade. It is down to the discretion of HMRC and therefore a security deposit is not always required. If such a deposit is payable, this will not in itself cause a pre-pack administration process to fail as trading can commence when it is paid. However, where funds are tight it is certainly an important factor to anticipate and build into the budget requirements for the new business. Article Tags: Hmrc Causing Problems, Hmrc Causing, Causing Problems, Pre-pack Administration, Security Deposit
Beware,the,HMRC,causing,proble