These clients had been experiencing difficulties with the payment of VAT and PAYE due to a decline in trading and a slump drop in visitor numbers to the locality. Our clients were also under pressure from their bankers as they were in breach of their debt service covenants and as a consequence were at risk that their bank would call in their loan.
Hospitality Business Recovery specialist, Stewart Hindley LLP, was approached to liaise with HMRC with the aim of agreeing a realistic debt repayment structure based on their ability to pay down debt over an agreed period of time.
The Business Recovery Solution
Stewart Hindley assigned a Senior Partner to take direct responsibility for liaising and negotiating with HMRC to reach a consensual agreement to meet the VAT and PAYE arrears.
During this process Stewart Hindley also liaised and worked with their clientâ€™s bank on a financial restructuring solution to support their hospitality business and debt to ensure that they could meet the historic debt.
Moving forward, the business was able to meet its current and future obligations to the bank and other creditors and improve its revenue and cash flow.
“Our previous accountants had no real understanding of our trade and had failed to advise us of an appropriate trading structure should we be unable to meet our liabilities. As a consequence we almost lost our business and our home due to debt collection measures from HMRC.
Stewart Hindley resolved our situation within a matter of weeks. Without their support we would have lost everything!”.