SinghSuperStud

iTrader: (2)

I'm director of a three year old Limited company and have got some major cashflow problems. Not caused my me :-)

A few months ago we were behind on VAT payments with C&E. However, at this particular time one of my sellers realised he'd gone over the VAt threshhold so back invoiced me for approximately what I owed the VAt people. I was told that I could use this invoice to offset my liability to the Customs and Excise which is what I did. I figured I'd rather have a copmany on my back rather than C&E.

However, now the time has come when the company wants their money. They've paid off their VAT liability but owe some money to the Inand Revenue. I am now in a position to pay them and they want the full sum (£8k) within two weeks.

Question is :

Can I claim insolvency ? I am told even this will cost me £2000 to do !!

Can I approcah the supplier and tell them my bank accounts have been frozen and they'l have to wait for their money ?

Can I wrote to supplier a letter that they can pass on to IR saying I cannot afford to pay them ? They can then have their debt written off by IR - is this an option ? Inland Revenu are already peeved off with the supplier apparently as this is draggin out a bit.

Or any other suggestions ?

I am expecting some money from otehr companies / people allowing me to pay off the supplier in about a month or two's time. I either want to get the debt written off or put back two months. As it's been put back several times already I feel this is not possible. I know I will be in aposition to pay within two months.

ANY help appreciated please. Please don't joke about and only give me help - this is literally make or break.

Thanks, Jai

Dunk

iTrader: (1)

Jai,
Don't try & pursue "a mate said" type responses. If it's a serious issue then treat it as such, go see an accountant asap for some decent advice.

K30

I used to work in accounts payable for a few companies and you always have people saying "i need this by tomorrow" most of the time of you can garantee to pay a said amount over a period and stick to it they are ok. I worked in one company with practically no cashflow (loans, overdraft of over £20m, etc) and they got away with it.
even once this was written it was abused - once it was actually my fauly, i forgot to post a £900,000 that had been promised. i found it in my drawer a few days later!!!
it may be well worth a try before you claim insolvency.

i hope this helps

Adam