Hi,
Does anybody know how the Revenue treat companies who are behind on VAT.?
A friend of mine has a company which seems to be in the beginning of a cash flow problem. They are currently at an overdraft of approx €25000 - €30000 and cant seem to get it down. The problem is they owe VAT for Mar/Apr '04 of approx €4000 and May/Jun of approx €2500. They would like to discuss it with the Revenue but are afraid they will draw the Revenue on them. The average VAT returns for a two month period are €2500 and are afraid that if they contact the Revenue and agree a payment schedule, thay may not be able to live up to the agreement. I know ignoring the problem will not make it go away, so could do with a bit of advice on what they should do.
Basically the Co. can trade ok making a small profit, but if the Revenue decide they want there money immedietly the Co. would be in trouble.
Thanks
VATMAN