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. Can you pay your VAT on time?
2. Does your business pay all PAYE/NI deducted from the payroll to HMRC by the 19th of the following month?
3. Can you pay your income tax/corporation tax on time?
4. Do you have a CCJ? Or is one threatened?
5. Do you pay your suppliers in 30 days when their invoices show terms of trade as 30 days?
Question 1 of 5