Practical steps for businesses affected by Carillion’s liquidation
Article posted: 15th January 2018
News that Carillion, the UK’s second largest building contractor, has gone into liquidation will be creating uncertainty for suppliers and sub-contractors to the company.
The ripples of Carillion’s liquidation are going to be felt far and wide, but we are hoping that the impacts are not life threatening for businesses in London and Kent.
The liquidator, PWC, says that the company is continuing to trade and is advising suppliers and subcontractors to continue to provide goods and services as normal, under existing contracts, terms and conditions. It says that goods and services supplied from the date of the Official Receiver’s appointment onwards will be paid for adding that it will be soon sending a letter with further instructions to suppliers.
Meanwhile, there are practical steps that suppliers and sub-contractors affected by this development can take:
- If you haven’t been paid for goods or services you’ve supplied to Carillion in liquidation, then register as a creditor. Details on how to do this are available through The Insolvency Service website.
- If you are expecting cash flow to be an issue in the immediate term take immediate measures to mitigate the impact, look at alternative sources of finance, and potentially contact your bank to see if they would be prepared to provide some temporary support.
- Contact HMRC’s Business Payment Support Helpline, which is available on 0300 200 3835, to advise that your business is impacted and ask for future tax liabilities to be deferred in the short term.
- Regularly check the liquidator’s website for suppliers to keep up-to-date on the situation. The page includes an email address and key information to include in any approach to the liquidators.
During this period of uncertainty, it’s vitally important that HMRC’s Business Payment Support Helpline is amenable to requests for help from businesses affected by Carillion’s liquidation. For many SME and family businesses, such leniency could be the difference between surviving or going under.
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