What is the attitude of the Inland Revenue and Customs and Excise?
The Crown creditors lost their preferential status as of 15 September 2003 and so now they rank as an unsecured creditor. This is far better from other creditors’ perspective as previously it could have taken several years to amass sufficient funds in a PVA to clear the preferential creditors. Unsecured creditors quite often had to wait 2 to 3 years before they saw a return. It was thought that the Crown creditors would take a much tougher approach to PVA’s but this has not really happened. They are however, less likely to support a PVA where the partners have, in the past, repeatedly failed to ensure that they settled PAYE/NIC and VAT and also failed to file tax returns. It is possible to seek a view from the Inland Revenue’s Voluntary Arrangement Unit in Worthing on whether they are likely to support a PVA.
