Published: 14th October 2014
Our family business has been torn apart by internal politics and nobody is taking responsibility for its tax obligations. We have a solicitor and accountant helping with matters but the accountant recommended we speak to an insolvency practitioner as our cash flow has severely diminished in recent months and we have a VAT payment coming up which we can’t afford.
In these circumstances where a viable company has been broken up by family squabbling, will HMRC help and give us some flexibility in repaying over time?
In this situation it would be sensible for you to speak to a licensed insolvency practitioner as it sounds as if the company is insolvent and riven with internal disputes.
This sort of situation rarely improves to the point of recovery and, therefore, you should seek advice regarding your responsibilities as a director of a (potentially) insolvent company and the options open to you.
It may be that a voluntary liquidation allows you to purchase the assets of the company and make a fresh start without the other squabbling shareholders and thereby preserve the underlying business which, from your description, otherwise seems doomed.