PBC Business Recovery and Insolvency are the Supervisor of several CVAs approved by creditors prior to the pandemic. These CVAs are primarily based on contributions being paid from profit over a number of years. In the majority of CVAs HMRC will be a substantial creditor. If post appointment taxes are not paid, this would be a (potential) breach of the CVA which, if not remedied could lead to the failure of the CVA and the company being placed into liquidation.
Whilst the CVAs we are dealing with are continuing to trade, some are still facing difficulty paying post appointment taxation like many other companies in the UK. However, it is becoming evident that HMRC are being more amenable at present, accepting time to pay agreements where in previous circumstances they would have refused. This would appear no different when a company is subject to a CVA, allowing agreements to be reached and avoiding the failure of the CVA.
If you or a client have any questions surrounding the use of company voluntary arrangements and whether the process would be suitable, or there is need of assistance in trying to reach an agreement with HMRC please contact PBC Business Recovery and Insolvency on 01604 212150 or 01234 834886.