Insolvency Help

Introduction Since the start of the Coronavirus crisis, the Insolvency Service has been issuing monthly statistics in addition to the usual quarterly reports in order to provide more timely indicators of the impact that COVID-19 is having on insolvencies.  Company Insolvencies in July In July 2020 there were 955 company insolvencies in England & Wales, …

Continue reading “Company Insolvency Statistics for July 2020 show a continued Decline”

Company Voluntary Arrangements (CVAs) are one of a number of insolvency solutions available to directors when dealing with company indebtedness.  In summary, a CVA is a formal payment arrangement between a company and usually all of its unsecured creditors.  It is an ideal solution where a business is trading profitably but has a large amount …

Continue reading “Will the Company Voluntary Arrangement (CVA) be more widely used post COVID-19”

Introduction Since the start of the Coronavirus crisis, the Insolvency Service has been issuing monthly statistics in addition to the usual quarterly reports, in order to provide more timely indicators of the impact that COVID-19 is having on insolvencies.  Whilst the numbers are presented as “provisional” they nevertheless indicate some surprising trends and in this …

Continue reading “COVID-19 is causing significant Financial Distress for Business – So why are Company Insolvencies so low?”

The Government’s loan support schemes have helped many businesses to weather the storms caused by COVID-19.  By the end of June, over 1 million loan applications had been approved amounting to total lending of £42.9bn, of which £29.5bn related to the Bounce Back Loan (BBL). Unlike the Coronavirus Business Interruption Loan (CBIL), for which there …

Continue reading “Bounce Back Loans and the Risks for Directors in Insolvent Situations”

The Corporate Insolvency and Governance Bill is currently making its way through Parliament and is expected to become law by the end of June 2020.  There are a number of key aspects to the Bill as far as insolvency is concerned, but perhaps the most striking is the introduction of a new statutory Moratorium process.  …

Continue reading “The Corporate Insolvency and Governance Bill – Proposal for a New Moratorium”

The key measures – as at 19th March 2020 Businesses of all sizes will have access to a £330 billion package of Government-backed loans and guarantees. The Chancellor said he would go further and provide “as much capacity as is required”. This will be delivered through two streams, both of which will be up and …

Continue reading “Government Support to Business”

To enter Administration, a company needs to be, or is likely to become, insolvent, where either the company’s liabilities exceed its assets, or it is unable to pay its debts as and when they fall due.

How are funds distributed in a Liquidation and who is at the top of the pecking order? In this month’s article we discuss the strict hierarchy within the Insolvency Act, which determines the order that creditors will be paid during liquidation.

We all know that Taxes should be paid when they fall due, however HMRC will usually agree a payment arrangement, known as Time to Pay (TTP) in order to clear any arrears. Here are 5 top tips to help you and your clients achieve the best outcome with HMRC

If a director, manager or secretary of a company fails to pay VAT, PAYE or National Insurance Contributions (NIC) deductions and HM Revenue & Customs (HMRC) consider that non-payment was due to fraud or neglect, then they have the power to issue the individual with a Personal Liability Notice (PLN).