This is Money report the taxman put a business into administration despite its debt being run up within just a few months. The recession was blamed for Airedale Electricals taking losses on major contracts.
‘The company came under increased pressure from HM Revenue & Customs, even though the debt due to them was less than four months’ old,’ administrators from XL Business Solutions said.’Despite this [the Revenue] advised the company that unless the outstanding debt was paid, a winding up petition would be presented.’
The Revenue said: ‘HMRC only initiates winding up or bankruptcy action in fairness to other taxpayers and where it believes this is the best course of action to protect the interests of the Exchequer in respect of a particular debt. ‘We do not take such action lightly. ‘HMRC offers a range of support to businesses in temporary financial difficulties.’
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