February 1st 2020
If you’re a company director then circumstances can arise in which you decide to offer personal guarantees in support of a loan application or your pursuit of a line of credit. Where these guarantee…
January 13th 2020
The question of whether and under what circumstances a director might find themselves liable for their company’s debts upon entering insolvency can quickly become a very pressing concern. For obviou…
February 7th 2020
Overdrawn directors’ loan accounts can come to be a real cause for concern; particularly in the context of a company entering insolvency. Therefore it can help to understand as clearly as possible t…
February 10th 2020
Releasing capital from a solvent company is a relatively common process in the UK and is essentially a means of raising cash from a business that has, for whatever reason, outlived its worth. In these…
January 25th 2020
If your company is insolvent and you are unsure how to progress, there are a range of options that could save the business from closure. Some involve informal negotiations with creditors and others ar…
January 22nd 2020
As a formal alternative to bankruptcy, an Individual Voluntary Arrangement is more flexible in that it allows a company director to remain in their position. Equally, you can be appointed as a new co…
January 31st 2020
We are often asked whether Administration and Liquidation are the same. Although they are both formal insolvency procedures, there are significant differences between the two, both in objective and ap…
The path to a successful and profitable business is invariably littered with obstacles, the majority of which tend to be financial. There are common recurring pressures, however, that can be dealt wit…
January 4th 2020
If you are experiencing business cash flow problems, you will want to act quickly to redress the position. Whatever the reasons for your cash problems, here are ten tips to help you regain control. …
February 2nd 2020
On 28 March 2020, the Government announced new insolvency measures to support businesses under pressure as a result of the coronavirus outbreak. The Government will amend insolvency law to give compan…
February 15th 2020
A defined hierarchy of creditors exists when a company enters insolvency, with secured creditors being at the top. A secured creditor is generally a bank or other asset-based lender that holds a fixed…
March 22nd 2020
Company director disqualification can stop you from acting as a company director if you fail to fulfil your legal duties or demonstrate improper conduct. Company directorship brings with it a legal ob…
March 21st 2020
Being refused finance or having a loan called in by your bank is not unusual these days. Traditional lending institutions have become extremely risk-averse since the 2007 economic downturn, and seekin…
February 26th 2020
It is commonly the case that franchise agreements terminate automatically when a franchisee enters insolvency. Agreements vary, but whatever the situation, the franchisor will want to recoup any arrea…
January 11th 2020
If you are owed money by an insolvent company, your options vary according to the level of debt, and the lengths you are prepared to go to recover your money. The most drastic creditor action you can …
Hiring an accountant to complete your company accounts and tax returns not only frees up time, it negates the need to employ high-level finance staff in-house. Most of the time this arrangement will w…
January 6th 2020
The pressure placed on government to reduce business rates has led to a range of reliefs and exemptions being made available, with some local authorities also offering discretionary reliefs to local b…
March 31st 2017
Personal Guarantee Insurance (PGI) is designed to offer some financial protection if you have provided a personal guarantee for company loans. Intended to offset your personal financial risk by provid…
January 24th 2020
When deciding on the best course of action for your insolvent company, choosing between pre pack administration versus Company Voluntary Arrangement (CVA) can be difficult without first identifying y…
Pre pack administration offers the opportunity to start a new limited company without pressure of debt. This is a popular solution for insolvent companies, with specific requirements in place to safe…
March 6th 2020
Dividends are unlawful when insufficient profits exist within the company to cover the amounts paid. Rules regarding the payment of dividends are laid down in the Companies Act, 2006 which states, “…
March 5th 2020
When a company cannot pay its VAT liability on time, a penalty is applied by HMRC. Unfortunately, this only compounds an unstable financial position, so it is crucial for directors to take action quic…
March 8th 2020
The Big Bang Theory is a very popular and successful American sitcom. ‘Stuart Bloom’ is the character who owns The Comic Center of Pasadena, a comic book store the main characters often visit. Th…
March 12th 2020
Given the complexity of many commercial leases, it is vital that you understand your rights when it comes to signing a personal guarantee for a lease. The ramifications of failing to meet lease repaym…
January 3rd 2020
The reluctance of some banks in offering business loans, as well as a potentially onerous administrative procedure, has resulted in more directors lending to their own company. Without the security of…
The Register of People with Significant control was introduced as part of the Small Business and Employment Act, 2015, after concerns were raised about corporate transparency at the 2013 G8 Summit. Al…
Failing to pay your creditors leaves you open to various forms of legal action, which can be taken through the County Court or High Court. These are civil rather than criminal courts, and as communica…
March 3rd 2020
It only takes a downturn in the market or the loss of a key customer to dramatically change the fortunes of previously successful companies. In fact, the threat of insolvency hangs over every business…
February 25th 2020
Your fiduciary duties as a director reflect a relationship of trust and loyalty between yourself, the company, its members, and stakeholders. The expectation is that you will act in good faith, and in…
January 16th 2020
Company directors take on specific fiduciary, common law and statutory duties and responsibilities when they are appointed, and their status is registered at Companies House. If you are not officially…
February 18th 2020
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 …
The revaluation of business rates that is due to take effect from 1st April 2017, will mean a substantial increase in liability for some companies already in financial difficulty. It could see a worse…
January 15th 2020
There are many reasons why you might want to dissolve your limited company. Perhaps you experienced early success, but the market has now shifted, or maybe your business is still successful but you ar…
March 13th 2020
Everyone gets ill from time to time and a couple of days away from work to rest and recover is often just what the doctor ordered. Occasional sick days are something most companies expect, and account…
February 9th 2020
Employers have a duty to ensure the health and safety of their employees and members of the general public when they are on business premises. The Health and Safety Executive (HSE) bring prosecutions …
February 3rd 2020
Even when your company is experiencing financial distress, it can be difficult to know when to seek professional help. It is a natural reaction to want to trade your way out of difficulty, but the soo…
January 1st 2020
Poor cash flow can have a highly detrimental impact on a company. What may appear to be a temporary problem that is easily resolved, can quickly result in the company facing a winding up petition from…
Carrying out due diligence prior to acquiring a business allows you to assess its current financial and operational status, and evaluate the company’s likely success in the future. Taking due dilige…
February 22nd 2020
Company directors can feel under enormous pressure from lenders if their company defaults on loan repayments. Threats of legal action often ensue, including County Court Judgements (CCJs), the seizure…
February 23rd 2020
When your business has cash flow problems it can be difficult to decide on the best course of action, but one of the main initial considerations is whether or not the company is actually solvent. If n…
February 19th 2020
HMRC provides a degree of assistance to some companies in arrears. It is not an uncommon event for a company to default on its tax liabilities, and if your business has become delinquent on VAT and PA…
March 7th 2020
Under company law you can be a director of multiple enterprises, regardless of whether one company is in liquidation. The Companies Act, 2006, also lays out your duties in directorship, and these incl…
If you are in serious dispute with a co-director – maybe you have strongly disagreed on a matter of business, for example, or are a divorcing couple - you may want to liquidate the company and move …
March 16th 2020
The Companies Act, 2006, sets out the general duties of company directors in the UK. If you breach these duties the consequences can be severe, with the company, its creditors, or shareholders having …
January 12th 2020
It’s important to find the right accountant or auditor for your business. Their input can save you time and money, and make a huge difference to your overall success. In fact, it’s often said that…
March 19th 2020
In the main, the limited company legal structure protects directors from personal liability in relation to business debts. Situations do arise, however, where claims can be made against directors in o…
March 15th 2020
Under the Companies Act, 2006, directors can be held personally liable for losses caused to creditors where ’misfeasance’ has occurred. If the company has to be liquidated, the office-holder will …
The manufacturing industry is experiencing significant change as it struggles to deal with the effects and uncertainties surrounding Brexit. Replacing skilled workers who have returned to the EU, deve…
February 4th 2020
If a company has been voluntarily dissolved and removed from the register at Companies House, then it can be restored, but only by a court order. The restoration by court order process can be lengthy,…
January 27th 2020
There are many reasons why you, as a company director, may wish to sell or otherwise dispose of, some or all of the assets of your company. It may be that they are simply no longer required, or your m…
February 17th 2020
When a limited company fails to pay a County Court Judgment (CCJ), the creditor can seek enforcement assistance from High Court Enforcement Officers (HCEOs), also known as bailiffs. Although this is g…
How to liquidate when a company has no money It is no secret that company liquidation, such as a CVL, has a price tag attached to it. For a company in financial distress meeting this cost may seem out…
January 8th 2020
Running a recruitment agency can be an extremely rewarding experience, both on a personal and a financial level. However, should business take a turn for the worse, problems can quickly mount up and y…
January 21st 2020
Overtrading is a serious threat to growing businesses, and can quickly cause once profitable companies to enter insolvency if not anticipated. The situation typically occurs when businesses grow at a …
January 29th 2020
An Individual Voluntary Arrangement (IVA) is a common debt recovery process in England, Scotland and Wales. It offers a number of benefits to those trying to escape unmanageable debt, but IVAs aren’…
A transaction at undervalue is when business assets are sold lower than their true value or for a loss. If transactions at undervalue are entered into by a company that later becomes insolvent, it can…
February 28th 2020
Taking on too much debt can restrict a company’s operational flexibility, leaving it open to financial problems should revenues drop. But there is a ‘healthy’ level of debt, or ‘gearing,’ th…
February 14th 2020
It is possible to officially register a company name at Companies House, but then use one or more ‘trading names’ as required by yourself or your organisation. Some companies trade under different…
March 1st 2020
When a company is wound up this means it is officially closed down, its assets and liabilities are dealt with, and the business removed from the register held at Companies House. As part of this proce…
You may be surprised to know that it is not necessarily your technology or the systems that you have in place that allow in hackers and data thieves. It is common for members of staff to be the weakes…
It can be surprisingly easy for a profitable company to find themselves sliding towards a state of business distress. Often this may not have anything to do with your running of the business, but inst…
At some point during the life of their company, many directors will find themselves using their own personal finances to help the business. This could be to improve their short-term cash flow, to purc…
When a company becomes insolvent but carries on trading, there’s a chance that directors could be accused of trading illegally if the company subsequently has to be liquidated.
January 5th 2020
A limited liability partnership (LLP) is a legal business structure. Professional firms such as solicitors and accountants often choose to set up as limited liability partnerships, but the structure c…
When customers don’t pay your invoices it can cause serious cash flow problems and ultimately lead to irreversible financial issues if not addressed. There are a number of actions you can take, howe…
March 25th 2020
If your company is experiencing financial distress, you may be considering appointing the services of an insolvency practitioner to help you navigate your current situation. Unless you have dealt with…
HMRC have a number of options available to them when it comes to recovering late tax payments from UK companies.
Members’ Voluntary Liquidation must be carried out by a licensed insolvency practitioner (IP), which naturally attracts professional fees and costs.
Commercial rent reviews were originally introduced after the Second World War, when inflation levels were high.
January 28th 2020
Entrepreneurs’ Relief is a tax relief scheme which allows for a reduced rate of Capital Gains Tax (CGT) to be paid upon the sale or solvent liquidation of a limited company. Those who qualify for En…
February 6th 2020
There are various ways for directors to take money out of their limited company. One of the most popular methods of drawing down funds is by issuing dividends to shareholders. Often taken in conjuncti…
February 21st 2020
When a business fails there are early warning signs to look out for that can help you deal with the matter before it becomes too damaging. Lack of cash often the first indication, and this may materia…
When you dissolve a limited company, whether through Members’ Voluntary Liquidation (MVL) or voluntary strike-off, any debts that are still owed must be repaid. Members’ Voluntary Liquidation is a…
February 24th 2020
When a company enters insolvency directors are typically protected by the ‘veil of incorporation’ and don’t face the same risk as sole traders, whose business debts must be paid from personal fu…
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