INS10117 - About the Voluntary Arrangements Service

The rescue culture: balancing conflicting aims

The need to balance conflicting aims is perhaps more apparent in VAS.

On behalf of HMRC VAS

• develops rescue culture
• takes commercial decisions
• yet has to underpin the tax and excise systems.

But the issues remain the same as in DMUs and Recovery Offices

• to collect money not bankruptcy or winding up statistics
• payment is compliance whether it comes in one sum or by instalments
• if there is no willingness to pay, particularly post-VA debt, VAS will take decisive enforcement action.

Fair and achievable proposals pose no conflict.

VAS supports proposals for VAs or variations to existing arrangements (with or without modification) when

• there has been full and honest disclosure
• a fair and optimum offer is made to creditors ( INS10167)
• provision is made for payment of all future statutory liabilities on time
• all creditors within the same class receive equal treatment
• there are no exceptional reasons for rejection.

If the criteria are not satisfied VAS will be supportive yet open and direct.

The primary aim is to make recoveries through support of achievable proposals.

Within the seven-day turn round period

• Tell nominees exactly why, if proposals are not acceptable.
• Ask for any additional information needed
• Say how you will vote if what you need is not provided
• Make it clear that you will support the proposal only if all criteria are shown to be satisfied, that the nominee and debtor must demonstrate this to your satisfaction.