Insight Associates provide outsourced accounting and Finance Director services to ambitious and growing businesses. We work as your only resource or with existing staff to give you complete financial support including monthly management accounts, high level financial advice, robust controls and financial systems, funding and business planning, payroll & compliance, VAT returns and statutory compliance.

Successful business leaders have all the information they need to make good decisions…Do You?

Saturday, July 23, 2011

HMRC appoints external collectors for unpaid tax

This Blog Post is from our good friends at KSA Group

HMRC have appointed ten debt collection agencies to pursue tax arrears.  This follows a successful trial last year.  The agencies will be charged with collecting about £1bn in taxes. 

Given that the agencies will only be paid on the amount that they collect it is likely they will be somewhat more forceful than HMRC.  This is going to be an added pressure on businesses.  The agencies appointed are being charged with collecting older and smaller debts allowing HMRC to focus on the bigger ones.  It demonstrates that HMRC are becoming increasingly more serious about the need to collect
VAT and PAYE arrears.

The collection agencies appointed are as follows;
Advantis Credit, Apex Credit, Close Credit Management, Clanchatton, Hillesden, Fredrickson International and Rossendales, Commercial Collection Services, Fairfax Solicitors and iQor Recovery Services.

The procees will be that HMRC will send a letter out prior to referring the debt to the collection agency.  We strongly advise that any business that receives this letter should contact the HMRC and try and agree payment terms as quickly as possible.  Payment terms may not be able to be agreed with the agency.

It is also critical that businesses seek help quickly from specialist firms such as KSA Group, who have a wealth of experience, and understand the processes within HMRC. If a payment deal cannot be reached there are often other options available if you act quickly, including a Company Voluntary Arrangement ("CVA"). At Insight Associates we have been working with one company that recently very successfully completed a full five year CVA from KSA!

Tuesday, July 19, 2011

Payments Council cancels plans for cheque withdrawal

You may recall that in May this year we wrote a blog item drawing your attention to the end of June cessation of the Cheque Guarantee Card Scheme.   Whilst this was considered an inconvenience it raised few concerns largely because a large proportion of consumers didn’t understand how the cards worked in the first place!

There was however a large public outcry at the announcement of the closure of the cheque clearing system planned for 2018 .  Although cheque use has been declining since 1990, about half of all cheques in the UK are used by businesses.  Many charities also raised concerns about how to adapt to the potential loss of income that losing cheques would have. 

It is therefore a welcome relief to many consumers that last week Richard North, the Chairman of The Payments Council announced that cheques will continue for as long as customers need them and the target for the possible closure of the cheque clearing system in 2018 has been cancelled.

The Payments Council  is the organisation that sets strategy for UK payments to ensure the systems and services meet the needs of users and further consultation with stakeholder groups led them to the announcement.  The Payments Council will continue to focus their efforts on security and efficiency and encourage innovation for a suitable alternative for consumers.

So, it would seem that the good old fashioned cheque, that has been with us since Roman times lives to fight another day!

Insight Associates, Insight House, Riverside Business Park, Stoney Common Road, Stansted Mountfitchet, Essex, CM24 8PL, UK
Tel: +44 (0)1279 647447 Fax: +44 (0)1279 814512
Insight Associates is a trading name of Financial Catalysts Limited. Registered in England and Wales Number: 5670047. Registered Office as above. Disclaimer | Cookies