The Cash Flow Test

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