Understanding the new standalone moratorium for insolvent companies
Find out how a standalone moratorium could help your insolvent business A crucial aspect of the Corporate Insolvency and Governance Act 2020 was the implementation of a procedure providing companies facing financial distress with a respite from their creditors. Known as the standalone moratorium, this measure grants viable yet struggling businesses the time and space […]
My insolvent business has ceased trading but creditors are still harassing me
Can creditors continue to ask for payment when you stop trading? When a business faces insolvency and struggles to meet its financial obligations, it’s not unusual for creditors to suspect some form of misconduct by the directors. Understandably, people seek someone to hold responsible, and directors often find themselves bearing the blame. Business conditions can […]
Understanding personal liability in insolvency
On 28th March 2020, the Government revealed fresh steps to aid struggling businesses during the COVID-19 pandemic. The Government plans to modify insolvency regulations, allowing companies a period of relief to continue operations while considering rescue options. It will also temporarily halt the wrongful trading rules, retrospectively effective from 1st March 2020 for three months. […]
Company Legislation – The Register of People with Significant Control
Company Legislation – The Register of People with Significant Control The Small Business and Employment Act of 2015 introduced a new obligation for companies to maintain a Register of People with Significant Control. This requirement aims to enhance transparency and address concerns about the intricate structures of various corporate organisations, extending compliance even to the […]
What to do when your company is struggling to turn a profit
4 essential recovery tips if your limited company is continually running at a loss For a company director overseeing the affairs of a struggling business, envisioning a recovery can be challenging as debts accumulate and cash flow remains insufficient. Turning things around appears even more improbable when the company already has a weak credit profile […]
How to approach creditors when you cannot pay
Top tips for company directors when negotiating with creditors Negotiating with a creditor is crucial, and communicating a reasonable payment plan is key to gaining their support. It’s important to grasp their perspective and recognise the daily impact of non-payment on them. In the end, they could seek to wind up your company, especially if […]
Steps to take when your cash flow is running low
4 ways to supplement cash flow when your business isn’t making enough money This concern resonates with a significant number of company directors or owners facing cash flow issues. Indeed, fostering corporate success and advancement can prove to be a frustrating challenge when your limited company isn’t generating sufficient funds to settle creditors or seize […]
Understanding the Finance Act 2020 and director liability
What do the new Finance Act 2020 provisions mean for company tax liabilities? Recent legislations incorporated into the Finance Act 2020 empower HMRC to hold directors, shareholders, and other individuals linked to a company accountable for unsettled tax debts in the event of the company’s insolvency. The regulations are designed to focus on individuals involved […]
Top tips for reducing employee costs
Are Your Employee Costs Too High? Many employers typically assess employee costs once or twice a year, usually during annual account reviews or employee appraisals. However, if your business involves overtime rates, bonuses, shift-work rates, or variable rates, it’s crucial to consistently control and review employee costs. Before hiring an employee, research the industry average […]
Directors Are More At Risk Under New Small Business, Enterprise and Employment Act Regulations
Directors Are More At Risk Under New Small Business Regulations The Small Business, Enterprise and Employment Act (SBEE) got the green light from the Royal Assent on 26 March. Changes to insolvency laws are on the horizon, raising the stakes for company directors. Three upcoming amendments may pose challenges for directors facing financial struggles: Compensation […]