Administration

[der Berliner 3,813]

It is unlikely they would get nothing. If they get nothing it is probable that RFC would be out of business and that is an unlikely eventuality given the assets on hand.

 

You are correct though that in an extreme instance they could get nothing. But dont let logic get in the way of HMRC decision-making. I represented a client with them who owed over 100k (plus interest and penalties) and told them that there was no way that the client could pay the liability let alone the add-ons. HMRC were very kind and agreed to forego the penalties. The original liability ? Must be paid in full...... result ? Company bankrupt and HMRC did in fact receive nothing.

 

So in essence they - by pushing through with their demands - forced the company out of business receiving nothing now, and nothing in the future either. For I would assume that had the company stayed in business, they would have continued to pay to HMRC normally? Here's logic for you. They could have demanded suspended payment or at certain rates for some years etc., but ...

[craig 5,199]

So in essence they - by pushing through with their demands - forced the company out of business receiving nothing now, and nothing in the future either. For I would assume that had the company stayed in business, they would have continued to pay to HMRC normally? Here's logic for you. They could have demanded suspended payment or at certain rates for some years etc., but ...

 

Unfortunately the business was likely to go under anyway, but HMRC werent to know that when they made their determination.

 

It depends on who you get when dealing with HMRC. Some do actually have some common sense and logic. Others simply tick the boxes they need to tick....