Hello
I have a new client with substantial overdue tax - it's mostly penalties which are now the subject of a special relief claim.
He is starting to build his business back and there are positive signs that as long as he can come to an agreement with HMRC then there is a good future.
I have spoken to HMRC intervention team and they are stalling on any discussions on the debt until the special relief claim is accepted or not. That's ok - what i expected but the call had to be made.
Now whilst all this is going on a family member has loaned my client money to buy new equipment to help grow his business.
So what do i do? Should i start them looking at ways to protect the equipment which has been funded by the family loan? I know there is a long way to go before we consider bailiffs and so on. But the old adage - plan for the worst hope for the best comes to mind.
Thank you for reading
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Charges
The new lender may want to take out acharge over the assets they are funding. But if there is an existing floating charge over the co's assets (e.g to secure an overdraft), then the existing charge takes precedence. They may waive their precedence over the new assets, but it's not automatic.