The Cash Flow Test – Can the business pay all its debts as they fall due?
If a business cannot pay all of its debts in accordance with the creditors terms and conditions the business is insolvent.
1. Does your business pay all PAYE/NI deducted from the payroll to HMRC by the 19th of the following month?
2. Can you pay your VAT on time?
3. Can you pay your income tax/corporation tax on time?
4. Do you pay your suppliers in 30 days when their invoices show terms of trade as 30 days?
5. Do you have a CCJ? Or is one threatened?
Question 1 of 5