Member Article

North East firms warned on insolvency

A North East insolvency expert has warned that it’s time to pay up, after new figures show a number of the region’s businesses are behind with their taxes.

Over 6000 regional firms owing a total of £101m have now had delayed payment approved through the ‘time to pay’ regulations introduced by HM Revenue and Customs last year.

But Jim James, North East Chairman of R3, believes short-term measures are no excuse for businesses to stop looking for ways to resolve their long-term financial issues.

He said: “The time to pay scheme has proved popular in recent months, but sooner or later the money owed by North East businesses will have to be paid.

“Companies need to be assessing their operations and financial structures now before their grace comes to an end.”

Mr. James has found that some companies taking part in the HMRC scheme may be in danger of trading while insolvent and this is only delaying firms going out of business.

The time to pay arrangements were introduced in the Chancellor’s pre-Budget report last November to cover business taxes. So far they have granted over 200,000 UK firms extra time to pay back almost £4b.

“R3 Believes companies who are given time to pay should be encouraged to seek professional advice as quickly as possible, “ said Mr. James.

“There are a number of measures than can be taken to keep trading and by looking to implement them early, both the company and the jobs can be saved.”

For more information log onto: www.r3.org.uk.

This was posted in Bdaily's Members' News section by Ruth Mitchell .