The process - How does it work?
Once you contact us regarding a crown debt, one of our consultants will arrange to meet up with you as soon as practicable in order to assess the situation. Initial meetings are free and confidential.
On instruction our process, evolved over the numerous cases already undertaken, is actioned:
- Phase I: An immediate contact with the Crown (HM Revenue and Customs) to agree a "moratorium". This is a period of usually 2 to 4 weeks whereby the Crown will take no recovery action, allowing us time to prepare and submit our report.
- Phase II: A detailed diagnostic is undertaken at the company’s premises. This process involves determining the significant issues surrounding the current financial situation. A review is undertaken of both operational and financial issues. The diagnostic will also review the current strategies and actions that have been or are to be undertaken to rectify the financial situation. It is these actions which provide the support to the forecasts and repayment profile submitted.
An in depth sensitivity is undertaken on any financial forecasts provided (assistance can be given in preparing the forecasts schedules). A repayment profile is then overlaid the cashflow forecast. This repayment takes into account the headroom of the business ensuring repayment is made to the Crown at a reasonable level.
- Phase III: The completed report is primarily presented to the company prior to submission to the Crown.
- Phase IV: Discussions are held with the Crown and an agreement reached. This can take upto 2 weeks.
Although each case is different, most repayment profiles are agreed between 6 and 24 months.
Although Sterling Business Strategies have considerable experience in establishing ‘Time to pay’ agreements, the Crown will always have the final decision after taking into account all the relevant factors. This involves prior dealings with the company as well as meeting the current tax liabilities as and when they fall due.
“By dealing with the arrears immediately, the process undertaken will provide invaluable breathing space for your business”
Enquire Online
Use our Online Enquiry Form or Contact Us on 0800 0735353 to arrange an initial visit with one of our consultants.
