Begbies Traynor Group

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The latest insights and trending topics from Begbies Traynor Group

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What is the Corporate Insolvency Test for a limited company?

The Corporate Insolvency Test refers to a method of determining a company’s ability to meet its liabilities as they fall due, and whether the total value of its liabilities exceeds assets.

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Who gets paid first when a company goes into liquidation?

A preferential or preferred creditor reserves the right to first payment during an insolvent liquidation, as laid down by the Insolvency Act.

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What is an insolvency practitioner and what are their duties?

An insolvency practitioner (IP) is licensed to act on behalf of companies and individuals when they are facing insolvency or acute financial distress.

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What happens when a company goes into liquidation?

Liquidation is a process that closes a company down and removes it from Companies House; here we explain the processes for solvent and insolvent liquidation

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What is a Statement of Affairs (SOA) during a corporate insolvency procedure?

A Statement of Affairs is a document detailing a company’s assets & liabilities.We outline the Statement of Affairs during a Corporate Insolvency procedure.

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What happens to company assets when a business is wound-up?

As part of the process of winding up a limited company, all of its assets will be liquidated, that is sold to realise as much money as possible.

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Understanding a company director’s fiduciary duties and consequences of failing these duties

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 the best interests of the company.

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I have taken too much out of my company in dividends – what can I do?

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 conjunction with a low basic salary paid through PAYE, dividends are one of the most cost-effective and tax-efficient ways of paying yourself as a company director.

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What happens when a limited company goes bankrupt?

When a limited company goes 'bankrupt', the correct term is 'insolvent' which means there is insufficient cash available to pay the bills as they become due.

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What are the Advantages and Disadvantages of Debentures?

The reluctance of some banks in offering business loans has resulted in more directors lending to their own company.

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What does HMRC’s preferred creditor status actually mean?

HMRC has regained its status as preferential creditor in insolvent liquidations but what exactly has changed and why has the government taken this action?

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HMRC Objection to Company Strike Off

If a company has been dormant for three months, i.e. no transactions in the company bank account and the business is no longer trading, you can apply to strike off the company with Companies House. But this is only a viable route if your company is up to date with its tax and accounting responsibilities, such as paying corporation tax and ensuring annual returns have been made.

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Understanding your rights with HMRC Enforcement Officers/Bailiffs

Following a notice of enforcement, HMRC bailiffs or a HMRC enforcement officer can enter your property to recover unpaid HMRC debts, such as VAT.

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What is HMRC interest on late payments in 2023?

When running a business, it is normal for market fluctuations and external factors to result in periods of financial pressure, which sometimes means there is not sufficient money in the bank to cover all running costs.

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A Guide to HMRC VAT Penalties and Surcharges

HMRC applies a penalty system when your company defaults on its VAT liabilities. This includes the late filing of your VAT return as well as late payment of the VAT due.

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What is a HMRC Time To Pay (TTP) Arrangement?

A Time To Pay arrangement is a method of spreading your business tax payments over a longer period of time in a more affordable way. An agreement is reached between the business and HMRC in an attempt to provide some breathing space to the business and allow cash flow to improve.

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