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What you need to know about HMRC distraint


If a HMRC officer has attended at your business premises and you have signed a ‘walking possession agreement’ you have in effect been issued with HMRC distraint order. By signing the document you have agreed to HMRC seizing your assets, but they have agreed to leave them with you temporarily - hence the description ‘walking possession’. 

Following HMRC Distraint you cannot then remove your posessions

HMRC distraintOnce the distraint order has been issued, you are not allowed to sell or move the property away from the premises, to do so is a criminal offence with dire consequences and you will be further putting your business and character at risk. By signing the HMRC distraint order, you have at least allowed yourself 5 days to raise the funds to pay the tax arrears or find a workable solution from a professional firm such as Cashsolv.

What you have to remember is that if you owe the HMRC money, they will recover it one way or another. HMRC has a duty to collect taxes and have wide powers to assist them. Their legal obligations sometimes prevent them from being able to act ‘commercially’ and they have to follow their processes, even when sometimes it doesn’t make a lot of sense.

Therefore, once distraint has taken place, you must act within the allotted time frame of the HMRC distraint and make arrangements to pay back the debt, or they will take away your assets to sell at auction, which may mean the end of your business. Whilst this may seem harsh and excessive, from HMRC’s point of view, sometimes they would prefer the business to stop, as in their mind it means that further PAYE and VAT debt will not be incurred. 

How can I stop a HMRC distraint order leading to business failure?

Cashsolv can help. We will work with you and the HMRC to find a viable and legal solution, but you must realise that time is of the essence and you must act now.

We have a number of options available which could resolve the HMRC distraint order, including a quick business loan, which we call a 24 hour emergency loan - as we can put funds in your bank account within 24 hours, a negotiated time to pay agreement, a Company Voluntary Arrangement (CVA), or Administration, all of which would help relieve the immediate debt problem.

One of our experienced team members will personally ensure that you are given all the options available and will help determine if your business has the potential to viable again.

Contact us immediately if you are faced with a HMRC distraint order – delaying could put your business at risk and ultimately the HMRC could sell your property and assets at public auction in order to recover the debt.

Carl Faulds By Google+ |
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