Dedicated advice for freelancers and contractors
Accountancy advice for contractors and freelancers including IR35 HMRC has the authority to levy substantial penalties on freelancers and contractors who neglect to adhere to their accounting obligations. Ensuring accurate bookkeeping, maintaining proper financial records, and submitting tax returns punctually are among the utmost crucial business responsibilities. HMRC retains the right to scrutinise your working […]
CVAs: Understanding the disadvantages
What are the cons of entering into a Company Voluntary Arrangement (CVA)? The drawbacks of a Company Voluntary Arrangement encompass the challenge of persuading directors to vote in favour of entering a CVA, potential limitations in securing future credit, and committing to a lengthy payment plan that may exert pressure on the company’s cash flow. […]
CVAs: Dealing with rejection or failure
What happens if a CVA is rejected or fails? What is a CVA? A company facing financial challenges has the option to initiate a Company Voluntary Arrangement (CVA). Essentially, a CVA is a structured payment plan established between the company and its outstanding creditors. It provides the company with an extended timeframe to repay its […]
CVA Debt Write-offs and Tax: Understanding Loan Relationship Rules
Understanding CVA debt write-offs and tax Corporate debt in the UK falls under specific taxation legislation known as the loan relationship rules. This legal framework, initially introduced by the Finance Act 1996, later became part of the Corporation Tax Act 2009. Now, what exactly constitutes a ‘loan relationship’? According to the legislation’s definition: “For the […]
Assistance when dealing with a High Court Enforcement Officer
What is a High Court Enforcement Officer and what rights do they have High Court Enforcement Officers (HCEOs) enforce judgments from the High Court and, in some instances, County Court Judgments (CCJs). Operating in England and Wales, they typically seize assets or repossess property under the Taking Control of Goods Regulations, 2013. HCEOs receive authorisation […]
CVAs: Understanding the advantages
What are the advantages of a Company Voluntary Arrangement (CVA)? After determining that opting for a Company Voluntary Arrangement (CVA) is the most suitable strategy for a company, it becomes essential to generate future cash flows to verify the feasibility of the CVA. In times of financial distress, many UK companies find that pursuing a […]
What to do if you have received a seized goods letter
What is a Seized Goods Letter? When government agencies, including HM Revenue and Customs and Border Force, seize goods, a notification of seizure should be provided, identifying the items involved. The type of seized goods letter you receive depends on whether or not you were present at the time. A common notice for seized goods […]
Consequences of Company Liquidation for Directors
Upon a company’s voluntary liquidation, its directors assume a set of legal obligations. These duties entail prioritizing creditors’ interests and refraining from any actions that could be interpreted as wrongful or fraudulent trading. Throughout the liquidation process, directors must fully cooperate with the designated liquidator and ensure the equitable distribution of company assets to creditors. […]
Advice for sole traders facing insolvency
What happens to sole traders when their business becomes insolvent? As a sole trader, there is no legal separation between you as an individual and your business. If your business faces financial issues or becomes insolvent, you, as the owner, are required to cover any financial gaps and repay outstanding borrowing using your personal funds. […]
Director Duties and Responsibilities When Insolvent
Director Responsibilities when a company is trading while insolvent When you realise your company is insolvent, it becomes your responsibility as a director to act in the best interests of creditors. This may involve discontinuing trading to shield creditors from additional losses. Your company is deemed insolvent if it cannot meet its expenses and settle […]