Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, how many company voluntary arrangements have been approved by HM Revenue and Customs where it has acted as a creditor in each of the last five years.

HM Revenue and Customs (HMRC) is a creditor in a majority of company voluntary arrangements (CVAs), usually in respect of the two main withholding taxes, VAT and PAYE. HMRC is supportive of business rescue and votes in favour of proposals that offer an optimum return to creditors; treat all creditors fairly; and most importantly demonstrate a clear understanding of how the company fell in to difficulties and make real changes to ensure that it can go forward not only paying against historic debt but paying its future tax in full and on time.

Where these expectations aren’t met or if there are serious concerns that require investigation by a liquidator, HMRC will generally vote against the proposal.

Indicative figures show that for April 2014 to March 2015, HMRC voted to support 299 (63%) CVA proposals and to reject 175 (37%). The figures for 2015-2016 were 217 (60%) and 149 (40%) respectively.

Although figures for earlier years are not held, in answer to a Freedom of Information request in 2012 HMRC advised that of the 1640 CVA proposals received for the period 1 April 2011 to 30 November 2012, it voted: to approve 998 (61%); to reject 387 (24%) and it abstained or the proposal was withdrawn on 255 (15%).

There is no business or operational need on the part of HMRC to record the number of petitions for a business in a CVA to be wound-up. This information is therefore not held.