What are the legal risks when a company becomes insolvent?
Can litigation be taken against a company director if the business fails? A business reaches insolvency when it is unable to meet its debts as they fall due. If your company is insolvent or you are facing financial challenges with the possibility of insolvency, it understandably creates a stressful and concerning situation. However, avoiding the […]
Understanding personal liability in Partnerships
Partnerships vs Limited Liability Partnership (LLP) If your business operates as a limited liability partnership (LLP), the members enjoy limited liability. This implies that their responsibility is confined to the amount they’ve invested in the partnership. This differs from standard partnership businesses where partners are collectively and individually responsible for all business liabilities, including debts […]
IR35: What do the new rules mean and am I affected?
What is IR35? IR35 is a tax law created to prevent avoidance, ensuring individuals in ‘disguised employment’ pay taxes at a similar rate to regular employees. The focus is on contractors seen as ‘deemed employees’ by HMRC, rather than legitimate contractors. What are the IR35 off-payroll working rules and do they apply to me? […]
IR35: How this could affect you and your company
Understanding the Implications of IR35 for Company Directors IR35, also referred to as the Intermediaries Legislation was initially enacted in April 2000 as a government initiative to curb tax avoidance. The legislation was built on the idea that independent contractors could evade tax obligations by operating through an intermediary, such as their own limited company, […]
IR35: How the Public and Private Sector reforms affects contractor
What is the IR35 Public Sector and Private Sector Reform for Contractors? IR35 is a legislative measure crafted to tax ‘disguised employees’ at a rate akin to regular employees. A ‘disguised employee’ refers to an individual who functions as self-employed through an intermediary, like a personal service company, aiming to evade National Insurance Contributions (NIC) […]
What is a Creditors’ Voluntary Liquidation (CVL)?
What is the process of a Creditor’s Voluntary Liquidation (CVL)? A Creditors’ Voluntary Liquidation, abbreviated as CVL, is a formal insolvency procedure that concludes the affairs of an insolvent company. This process can only be initiated under the supervision of a licensed insolvency practitioner, who takes on the role of liquidator for the company throughout […]
Corporation Tax – What Happens If Your Limited Company Cannot Pay?
What happens if I cannot pay Corporation Tax? If you’re unable to settle your Corporation Tax, HMRC has the authority to initiate debt recovery proceedings for your company. Yet, by engaging with HMRC and informing them of your challenges, you might negotiate a Time to Pay (TTP) agreement. This could grant you extra time to […]
What Is Limited Company Insolvency?
Understanding limited company insolvency If your business is in financial trouble or heading towards it, seek advice from a licensed insolvency practitioner right away. Get free, private advice to explore all available options for your company. What is company insolvency? Insolvency happens when a company can’t pay its debts or bills on time and […]
Fast-Track CVAs – The most efficient business rescue process post-COVID?
What is a Fast-Track Company Voluntary Arrangement (CVA)? A Fast-Track Company Voluntary Arrangement is a formal insolvency process that allows you to negotiate a cost-effective payment plan with creditors under time-sensitive conditions. A Fast-Track CVA is a suitable rescue option for businesses impacted by COVID-19 and requiring a prompt recovery. Fast-Track CVAs Despite businesses […]
I Cannot Afford to Repay My Business Bank Loan – help!
What happens if you cannot pay your company’s loan? If you can’t manage the repayments on a business bank loan, carefully review the terms and conditions. Check if you might be personally responsible for repaying the loan. Limited companies have limited liability, protecting them from debt responsibility. However, some lenders may ask directors to sign […]