If you owe money to your creditors that you can’t repay, they can take legal action against you which could potentially lead to the closure of your business.
If you’re unable to pay your staff then it’s also likely that you’re struggling to pay bills from suppliers, HMRC and other creditors when they become due, and at that point, your business could be technically insolvent.
HM Revenue and Customs (HMRC) has expressed concern about the use of this process known as Moneyboxing, but what is it? Begbies Traynor discusses.
In general, your home is protected by the ‘veil of incorporation’ that separates the company as an entity from you as a director.
If your company is forced into liquidation, the actions of all directors leading up to insolvency will be investigated by the liquidator.
If the stresses and strains of running a successful company have taken their toll on your physical or mental health, it might be time to step back.
Accountants are human which means errors can unfortunately occur. But ultimately HMRC sees the director responsible for accurate tax reporting - find out more.
While company directors are generally protected by limited liability, recovery powers granted to HMRC in the Finance Act 2020 mean directors can face greater personal liability for tax debts held by the company in the event of insolvency.
New legislation may mean former company directors can be retrospectively issued with a disqualification order if they misuse the dissolution process.
Do you know the difference between preference shares and ordinary shares in a limited company? Directors and shareholders should take note - read more here.
A rescued company may be described as a 'going concern' because it is expected to trade profitably and without distress for at least 12 months.
If you are thinking of resigning as a company director, there are specific steps you and the company must take.
It isn’t common knowledge but directors may have a claim for redundancy when their company enters liquidation. They must be able to prove their status as an employee of the company, and fulfil more than an advisory or non-executive role.
Experiencing business cash flow problems? You will want to to redress the position. We list the Top 10 Tips for Dealing with Company Cash Flow Problems.
Making sure that you have a realistic cash flow in place together with project management analysis is the only way to ensure you can add the appropriate mark-up and margins to the overall costings of the project so that it will be profitable for you.