Negotiating Time-to-Pay Arrangement
Client recently had VAT inspection resulting in an assessment of additional VAT to pay, and needs time to pay this VAT and some CT. HMRC have asked for a proposal in writing. One of the reasons the client needs time to pay is that one of the two director-shareholders has another company that is in trouble and has had to withdraw virtually his entire DLA balance to fund it. I understand that if the other business went under, the bank would chase him for their money, and may try to take funds from the company which is my client. I also understand he can take no more money from my client company for this purpose.
Is this the sort of thing I should put in the letter with the proposal, or would it have an adverse effect?