Guidance for dealing with january 2011 from Exeter Accountant Stephen Marlow
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Debt management by Marlow accountants will help small companies facing financial difficulties. See how to trade through your difficulty.
With the looming rise of VAT, you might be surprised at how much that 2.5% is actually going to cost you.
In every business cash flow is king. But if the crown slips or even falls off then who do you turn too. There are several agencies, and some will make substantial charges to help. This is where Stephen Marlow and his team at Marlow Accountants can become a very good friend. |
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Take the example of a company owing VAT or tax to HMRC. In the past HMRC have said that they will help business experiencing difficulty. However they now want your money as much as every one of your suppliers, but they are being very aggressive about it. HMRC have performed a volte-face! They are employing 4 Debt Collection companies and Bailiffs to secure their outstanding debts. If you get a letter from the following...
- Commercial Collection Services Ltd
- Credit Solutions Ltd
- Fairfax Solicitors Ltd
- iQor Recovery Services Ltd
…take some action. Failure to pay will, eventually, lead to a visit and if you still cannot pay then a Distraint Order will be prepared and you will be asked to sign it. You then have 5 days in which to pay the VAT or tax. If you do not sign it, then you still have 5 days to pay. However, if you fail to do so they will re-visit and take away the goods on the order.
But you do have a friend in these unfriendly times – Stephen Marlow. He will look at your business debt problems in an unbiased and objective way. Based on his analysis Stephen will advise a course of action. The objective is to manage the debt problems and trade out of the situation. Do not be lured into thinking that going bankrupt or using an IVA will solve the problem. Going bankrupt will cost at least £550 and you lose the business, income, assets and pride. Fees for an IVA may cost you more than £4,000 and you still owe 100% of the debt.
Stephen Marlow takes the middle route – self-help and success. He will work with you to trade out from the financial the condition. How it occurred is irrelevant to him, it's how to deal with it, is the important action. Suddenly you have a friend, providing advice and support. Financial difficulties dominate business thoughts and become a distraction to running the business. Failure hits pride. The way forward is to work with Marlow Accountants to produce a financial plan that trades it way through the storms. If debt is your dilemma then contact Stephen today.
Plan for the VAT storm in January 2011
Ok…so it's 3 months away. Do not be lulled into thinking there is plenty of time. It is not just a case of re-pricing, because the change will materially affect every business, even those that are non-vatable or not registered for VAT
How will VAT change our business life and finance?
- It will add 2.5% to your costs
- It will mean that your payments of VAT to HMRC will increase
- The VAT increase might reduce sales
- The increase will mean that supplier’s credit terms are likely to tighten.
- Your existing cash flow forecast or plan will become obsolete
- You may need to revise or increase your bank facilities
6 reasons to think about. Remember even the bank will increase its cost of paying in cheques and other services.
Act now
Use these next 3 months for planning to survive the VAT storm. There is evidence already of a slowing in business transactions. The general Government cost-cutting will have a wide impact and this might reduce your sales. So it becomes a double whammy – reduced sales and increased costs. Factor this into your cash flow and what is the result….probably ugly.
This is the time to talk to Stephen Marlow at Marlow Accountants about your business. Lay plans today to deal with the impact, because by January it will have taken place and too late to react. |
