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Are PAYE Arrears Dragging you Down?

Have you gotten behind on PAYE deductions? Is your company facing legal action due to PAYE arrears? Are you feeling the pressure from HMRC? Don’t despair. Call TruSolv. We’ve provided invaluable assistance to scores of UK companies in exactly the same situation.

All employers are required to deduct PAYE from employee payroll. It’s an obligation, not a suggestion. Companies who fall behind on PAYE deductions typically find out in short order just how seriously HMRC takes that obligation.

But while HMRC is uniformly aggressive in pursuing PAYE arrears regardless of company size or stature they are also open to good faith negotiations to resolve the matter. The key words here being “good faith” and “resolve.” Because if HMRC perceives delay or attempts at obfuscation, they’ll have no bones about abandoning negotiation and, if necessary, forcing liquidation in order to satisfy your debt.

Your best bet to resolve the situation amicably is to enlist the services of TruSolv.

What are the possible consequences of PAYE arrears?

PAYE is an acronym for “pay as you earn.” It is a somewhat elaborate title for what amounts to income tax. As an employer, you are obligated to deduct a certain amount of income tax from each employee for every pay period.

Sometimes, however, companies experience cash flow problems and temporarily withhold PAYE contributions to HMRC so the money can be used to address other immediate concerns. Occasionally this strategy will work and PAYE contributions to HMRC are resumed with barely a bump in the company road. Sometimes, however, the situation gets out of hand and the company slips into arrears.

HMRC does not take kindly to arrears of any type and do not hesitate to issue ‘demand for payment’ letters. These letters typically provide a very tight response window after which legal action is inevitable. A demand letter from HMRC is not something that should ever be ignored. If you have received such a letter and are at a loss for what to do, you should call TruSolv immediately.

We’ll devise an appropriate response for you based on your current situation that will either satisfy the debt or initiate negotiations with HMRC that will enable you to do so in the near future. Again, however, the one thing you must absolutely avoid is the temptation to ignore the demand letter.

Have PAYE arrears? It’s important to realise that you may be held personally liable

If your business is unable to make its PAYE contributions or settle its arrears with HMRC, it’s an indicator the business is likely insolvent. If your business is insolvent and you have not taken action to declare it, you could ultimately be charged with fraudulent business practices, which is a serious crime.

As the director, you must respond quickly and decisively to your company becoming insolvent due to PAYE arrears if for no other reason than failing to do so could result in you being held personally liable for the debt to HMRC.

While a demand for payment from HMRC must never be taken lightly, it’s important for both your customers and your employees that you keep your head and call TruSolv. We’ll explain your options and assist you in choosing the one most appropriate to your situation.


What are those options?

If your company is in hot water due to PAYE arrears, you still have multiple options going forward. The best option is always to simply pay the arrears in full if you have sufficient resources to do so.

Should your company be solvent but suffering from cash flow problems you may be able to negotiate a Time to Pay arrangement. With this type of arrangement HMRC grants your company time to repay its debt by making a series of what are typically monthly payments. Be aware, however, that should you miss or even be late with a scheduled payment HMRC will void the agreement and renew their aggressive pursuit of the debt.

You also have the option of raising emergency cash via invoice factoring or invoice discounting. This may provide all the cash you need to satisfy the debt without taking a bite out of your company’s cash flow in the short term.

Finally, if your company is insolvent you can consider some form of administration which will prevent HMRC from forcing liquidation upon the company in order to settle the debt.

Know your options when it comes to PAYE arrears

HMRC is relentless in their pursuit of arrears, but that doesn’t mean you should panic if you receive a demand letter from them. Instead, stay calm and contact the professionals at TruSolv. We’ve helped scores of businesses in the UK resolve their PAYE arrears issues with HMRC and return to normal business operations as soon as possible, and we can do the same for you. Get in touch today to learn more about your options when it comes to this important issue.

Call us. We can help you navigate the minefield of PAYE arrears. The call is FREE. Don’t wait.

Our team of highly trained advisors have provided invaluable assistance to scores of UK companies facing the wrath of HMRC over PAYE arrears. We can help you too. You are not alone.

Call 0808 196 8676 today. Together, we’ll sort things out.

Contact us today for FREE

to learn more about how we can help you and your business.

We have a team of advisors who have helped hundreds of businesses around the UK that have faced financial pressures on every scale. You are not alone.

Call us free and in confidence on 0808 196 8676 and together we will sort things out.