Below is a shortened version of a successful piece of news sent to our colleagues throughout the Beer group.

Please take a minute to read this email as we would like you all to be aware of how we can have a positive impact when clients are faced with HMRC arrears.

This year we have taken on a number of engagements that have involved specifically helping clients with putting ‘Time to Pay’ proposals to HMRC for arrears of VAT and/or PAYE. We have developed very good relationships with a number of HMRC departments across the UK – particularly the Debt Management Unit in London but also a number of others.

HMRC have been very receptive to working with Beer & Young because:

• We present sensible proposals to them and often with the prospect of investment if HMRC are prepared to be supportive.
• Survival, turnaround, and recovery are part of our key messages.
• Prospects of achieving all or part repayment of arrears are increased if an investor backed solution can be found.
• Insolvency procedures are a last resort and not just a ‘fait accompli’ when we are involved.

We have increased our level of expertise significantly in this area over the last year and have secured a number of successful ‘Time to Pay’ agreements for our clients. Please bear this in mind when talking to clients/prospects that may have accumulated arrears – WE CAN HELP AND KEEP THEM IN CONTROL OF THE SITUATION. There has been recent press coverage regarding a change of attitude at HMRC regarding arrears and ‘Time to Pay’ proposals – basically HMRC seem to be taking a harder line as the ‘black hole’ of unpaid taxes has escalated so rapidly. We believe this will increase the pressure on the SME community and we would stress that we are well positioned to leverage our relationships with HMRC to deal with this increased demand.

This is all part of the ‘added value’ to the services offered across the Beer Group and we are very pleased to promote it to all associates – it really can be the difference between survival or failure for a client.

Many thanks for taking the time to read this email and I would certainly be interested to hear any feedback/experiences you may have had in dealing with HMRC recently.

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The following article appeared in the Evening Standard in 2009.
Angels in ER

Declan Williams is Director of Business Development for Beer & Young Limited, who provide SME’s with turnaround recovery solutions working with their angel network that lives to breathe life into struggling businesses. With over 1,000 investors on their books, many with personal experience of business turnaround, they are ready to help good companies that have hit bad times…

“We are passionate about recovery and we do not like people to fail simply because they have not explored the options available. In a challenging situation owner-managers start panicking and fire-fighting, and they are often loath to say ‘I need help’. I have never seen a business plan that says ‘in year three I may get into trouble’.

“I always think in terms of black holes; when a business makes losses, someone is filling that hole and it is usually the owners, the bank, the creditors or HMRC [Revenue and Customs]. Eventually you will run out of cash; the bank will start bouncing cheques and suppliers will stop supplying unless you put in more cash.

“Entrepreneurs feel isolated and are often lonely. They will sometimes talk to their accountant or bank, but they are often reluctant to look at the options available. It is easy to terrorise people and tell them they are trading insolvently. Sometimes administration or liquidation is the right thing to do, but directors are made to feel they have failed. That is wrong.
“Insolvency is not necessarily the only game in town. If you go to see an insolvency practitioner in isolation what does his goody bag contain? It contains insolvency.
“They may look at the option of taking the business through an insolvency procedure such as a pre-packaged administration. We are not big fans of the pre-pack – it is another term for a phoenix scenario – where the same people who had the problems buy back the business. There is no point in offering a pre-pack that may go bust again in six months. What has changed – apart from the fact that you have left the creditors behind?

“If an entrepreneur is determined there is often a way through the situation. We sit down with a business in distress and explain the options and we look for an investor-backed solution. There are opportunities for new money from an experienced investor who is prepared to roll his sleeves up to get the business back on track.

“Most of our investors are self-made, and they are able to divorce themselves from the emotional side of business. Sometimes they have learned the hard way and to focus on the fact that a business is there to make money. Investors are supportive of people in trouble because they know how it feels. “It is all about riding the punches and learning to do it better next time. There is not enough sympathy for entrepreneurs who have to put their heads above the parapet. They employ people, they invest personally, putting their assets on the line. They work 24 hours a day to keep their business going. They may have hit a brick wall and they are made to feel like charlatans just because they have run out of cash.

“The investor will take a stake in a business, and they will put incentives in place to keep the people sticking at it. Most entrepreneurs have 100 per cent of a lot of problems when they come to us. Much better to have 30 per cent of something of value in the future.

“Investors are often sector-specific - manufacturing is very popular. People love going to a place to see things being made, even if it is only assembly. There will always be a business in panel-beating things into shape. Even if the raw materials come from China, the design and technology will stay in the UK. Manufacturing has a future in the UK.

“We need to be more American in our behaviour. Part of being an entrepreneur means you learn from your mistakes. That is what I like about investors. They recognise this; they put their cash on the table and help entrepreneurs to make the best of a bad situation.”

Beer & Young Limited

Approx. 20+ deals per year

Average investment: £300,000

For case studies please see: www.beerandyoung.com

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We very much believe that the ‘glass really is half full’ and no matter how dire things might seem there will always be some positives. We really don’t like seeing failure and business owners throwing in the towel when they have not fully reviewed all the options. Our clients need help, support, and positivity, as well as the money! Read More...

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The following snippet appeared in the Financial Times in 2009