Jacobs Allen, a member of the Corporate Finance Network with offices in Suffolk has advised the owners of a hospitality business in financing their tax liabilities.
The business was profitable but due to the seasonal nature of its trade was projected to require additional cash resources to be able to be able meet its tax liabilities as they would fall due.
Two previous Time to Pay arrangements had been readily agreed with HMRC and settled on the due dates, but HMRC refused to consider agreeing to a third more substantial one.
Following Covid HMRC are now taking a much tougher stance on agreeing to these types of arrangements but this is worth pursuing as can provide the ideal solution for a business in certain circumstances.
Chris Kelly of Jacobs Allen then involved Sushil Patel, a Kroll Restructuring specialist, who was able to persuade HMRC to agree to a £135,000 3-year Time to Pay arrangement. This has enabled the client to concentrate their time on developing their business with the confidence that their financing requirements were settled.
