Cant pay VAT and PAYE

Value added tax (VAT) and pay as you earn tax (PAYE) are the two most important payments that a business needs to make. It is possible that when a company is going through a financial crunch, they can’t pay VAT and PAYE .The available cash is used to make other payments and these taxes are neglected. However this should not be done. The situation can turn awry if you continue doing this for a longer period of time. The governmental institutions can also give orders for winding up of the business if the tax returns are not filed on time.

The custom officers do not like this and may come up to you for an enquiry. You may end up in a vicious circle of financial and legal problems if you do not take necessary action on time. It is possible that if your company can’t pay VAT and PAYE, it has become insolvent. But that is an extreme case. The governmental departments may declare this publicly that your company is insolvent. Keep this in mind and take necessary actions to avoid such a situation for your business.

When your company has not paid the VAT and PAYE for a longer period of time, you may need the help of professional companies that would help your deal with this kind of a situation. These companies have the experience of working with a number of businesses in the same situations. When you delegate the work of dealing with the taxes to these companies you can save time for other important business functions. These companies follow a certain process to get you a plan to pay these taxes easily by restructuring the payment process.

They would come up to you and discuss the reasons for non payment of taxes. This will also help them know a lot about the company and its future plans. They would gain important knowledge about the credibility and financial position of the business as well. it is possible that they get an indication that whether you would be able to pay your taxes or not. This information will help them in further proceedings. They will acquire an agreement from your company which would allow them to act on the company’s behalf.

They would go on to submit your payment restructuring proposal further to other departments. This would save you time and cost. They request these departments to allow you the time for preparing a report and re-plan the payments. You can then approve or disapprove the report they give to you. In the end they reach a decision after analysing various aspects that whether your company will be able to pay back the taxes or not.