Members’ Voluntary Liquidation: Declaration of Solvency
What is a declaration of solvency? A declaration of solvency is a crucial legal document that requires the majority of the company’s directors to sign before initiating a Members’ Voluntary Liquidation. This declaration confirms that the company is financially stable, capable of settling all outstanding debts (including statutory interest) to creditors within 12 months from […]
What is an insolvency lawyer?
What is the role of an insolvency lawyer? An insolvency lawyer is a legal specialist in insolvency law. They assist both the insolvency practitioner and the limited company going through the insolvency process. Sometimes, an insolvency solicitor is needed for intricate situations, like mass layoffs or international transactions. Evaluating the differences between insolvency lawyers […]
Do I pay tax on dividends from my limited company?
Understanding dividend payments and tax Receiving dividends from your limited company as part of your director pay, along with a modest salary through PAYE, could be the most tax-effective method of taking money out of your business. The firm isn’t obligated to cover employer National Insurance Contributions (NICs), and you’re not required to pay employee […]
The Business Distress Index Q4 2022
The most recent Business Distress Index figures reveal that small and medium-sized enterprises (SMEs) throughout the UK are experiencing unparalleled levels of distress due to the nation dealing with a post-Covid cost-of-living crisis. After analysing fresh data regarding business performance in the last quarter (Q4 2022, October to December), the results highlight the immense challenges […]
What is the Commercial Rent Arrears Recovery (CRAR) scheme?
What does the CRAR scheme mean for landlords and tenants with rent arrears? The Commercial Rent Arrears Recovery (CRAR) scheme is a lawful process landlords of commercial properties employ to reclaim overdue rent from tenants who remain on the premises. So, if you’re a commercial tenant and you’re late with your rent, this procedure could […]
Investor has pulled out of my business
What happens if my company loses its investment? Getting business investment sorted can take quite some time and can be quite complicated, whether you’re just starting out or already have a business and aiming to expand. If an investor suddenly backs out, it can really mess up your plans and might even force you to […]
What action can creditors take against my company?
What steps can your creditors take and what can you do to prevent it? If your company owes money it can’t pay and your creditors (those you owe money to) are putting pressure on you, you’ll understandably be worried about what they might do. Certain creditors, like HMRC, have strong enforcement powers and can act […]
Am I Still Liable For Business Debts After Resigning As Company Director?
Am I liable for company debts after resigning as director? If you step down as the director of a limited company, you might still be personally responsible for business debts in some cases. If you’ve personally promised to cover any company borrowing, like a loan or lease agreement, this commitment stays even if you quit […]
When might a trade sale happen?
What is a trade sale of a business? A business trade sale is a transaction where the buying company will carry on the operations of the acquired business. The buyer is typically already active in the same industry or sector. A trade sale may include the purchase of the company’s shares or its assets (such […]
Understanding the differences between priority and non-priority debts
What are examples of priority and non-priority business debts? When facing challenges in paying multiple debts, it is beneficial to understand which ones should be prioritised and which can be addressed later. Certain creditors possess more authority than others in debt recovery and can do so without resorting to court proceedings. Here is a list […]