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The truths they don't want you to read....

Friday, March 26, 2010

Highland Airways - the end

How much would the Fuel Duty Regulator save us?

The sad collapse of Highland Airways would cost £30 per adult in the islands for the tax bill alone.

Before people start criticising the Inland Revenue for withdrawing an agreement, you have to understand just how these agreements work.

In my experience there are three simple rules you have to meet to have the Inland Revenue stick to the agreement:
  • Make the payments when you promise
  • Over a reasonable period, and
  • Keep current liabilities up to date

If you can't manage these, then your liabilities seem to be running out of control, and you will find that the Revenue take serious action.

Even then you have lots of opportunities to solve the situation (as I have done on more than a few occasions) before it gets terminal.

As far as I can find out, Highland failed these tests, passed these deadlines and then – only then – tried to find a saviour. That is way too late, and places all the power in the hands of the Revenue.

The directors now find themselves in a potentially very difficult position, having traded whilst insolvent and run up large debts that were unlikely to be repaid. It is very sad for them, as they had all the right intentions and all the hopes and best wishes from the community, but that is the way that business works.

Blaming the Inland Revenue is simple, a non-brainer and totally imbecile, and reflects badly on the business knowledge of those mouthing these banalities.

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