Written ByRobert Moore
Marketing Manager
Rob has over a decade of experience in web and general marketing. He has extensive knowledge of the Insolvency sector and has helped many worried directors with their questions.
Rob is now working with the Board at KSA Group Ltd to develop strategic marketing programmes to support the business plan and drive more company rescues.
According to reports in the Times, the Honest Burger chain of restaurants was served a winding up petition by HMRC over an unpaid tax bill. The company stated that it had been asking for a bit more time to pay the debt but talks had fallen through. HMRC often allow companies a bit of extra time to pay taxes and this is usually called a Time to Pay arrangement.
Honest Burger spokesperson said that they had been told that they would have at least 6 weeks before any action was taken by HMRC. They were somewhat surprised to find that HMRC filed a petition only a week later. The issue now facing companies is that when a petition is filed at the court it is instantly available to various credit reference agencies. This used not to be the case until after a petition was actually advertised which, to be fair, was usually a few weeks after it would have been served.
This goes to show that HMRC are beginning to take more aggressive action against companies that they feel can afford to pay. Honest Burgers had just raised £3m via crowdfund capital raise last month and perhaps HMRC felt that they needed to get paid.
The reports did not reveal what the amounts were but a spokesman for Honest Burgers said.
“If we could deliver burgers half as quickly as HMRC delivers petitions, our like-for-like sales growth would be even higher than the 20 per cent we are seeing now.”
A spokesman for HMRC said: “We take a supportive approach to dealing with customers who have tax debts and only file winding-up petitions once we’ve exhausted all other options, in order to protect taxpayers’ money.”
This is all a bit embarrasing for the company that has grown significantly since its start in Brixton in 2011. The company now employs 700 people across its 40 sites. The company says it has now paid the outstanding tax and the petition has been withdrawn.
Byron Burgers was another chain that has experienced financial problems and entered a CVA to try and cut costs. The chain had gone from 67 to just 9 now. So perhaps HMRC were wary of Burger chains.
HMRC will take into account companies that it feels are at greater risk of insolvency when prioritising the collection of taxes.