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Directors’ redundancy – can I claim?

Can directors claim redundancy following liquidation? Directors’ redundancy entitlements have historically been  difficult to successfully claim for. It used to be the case that directors were unable to make redundancy claims from the government-backed National Insurance Fund (NIF) where they were also controlling shareholders. The NIF is managed by the Insolvency Service and provides statutory payments for employees that have been made redundant. However, contrary to much popular belief, the position for directors has changed in recent years. This applies even where a director is the sole director and shareholder of the company.   Case law: Secretary of State V Knight The current case law relies on the court of appeal finding in the matter of Secretary of State for Business Innovation and Skills v Knight.   The respondent in this appeal was the sole shareholder […]

Under pressure from creditors? Understand their rights and yours

If your company is struggling on a financial level, you might find that keeping up with the debts you have to pay back to your creditors is difficult – if not impossible. When you end up behind on your payments, the chances are you’re going to experience some communication with the people you owe money to, and it’s important that you maintain direct and honest contact with your creditors if you want to avoid the strain of extra pressure. While it’s fair to say that pressure from creditors can be a huge burden to business owners, knowing what your rights are, and what your creditors are allowed to do, can be important when it comes to managing the situation. Remember – ignoring the issue is never the answer. What rights do creditors have? Creditors have a number of tools at their disposal designed to help them recover the money they are owed. For […]

How can I tell If my Company is Insolvent?

One particularly crucial question that a business may need to ask themselves during the most challenging periods, may be “Is my company making money?” At the end of the day, if the company isn’t making money, then it’s failing, and this could lead to a case of insolvency. While determining whether your company is making money can be as easy as checking your end-year management accounts and reviewing your bank accounts, the question of solvency can be a little more complicated to answer. Insolvency, from a professional standpoint, happens when an organization is no longer to meet the financial obligations that have been set in place between it, and its lenders, or lender. Insolvency can lead to insolvency proceedings, in which creditors may take legal action against the insolvent entity in an effort to use some of the remaining assets of the company to pay off mounting debts. Insolvency can […]
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    Will a Company Voluntary Arrangement (CVA) work for my business?

Will a Company Voluntary Arrangement (CVA) work for my business?

While it may be true that many businesses fail during a time of recession of financial turmoil, many of those companies don’t deserve to fail. In a difficult economic climate, businesses can often struggle to prosper and survive, meaning that we often seen businesses go under as a by-product, which would do well in other circumstances. However, there are some solutions available that could prevent the collapse of a potentially profitable company. When a profitable future appears viable for a currently struggling business, and the directors involved with that organisation are willing to continue forwards, something called a “Company Voluntary Arrangement” or CVA, could be an ideal way to protect a group against the legal actions often taken by creditors. The terms of a CVA generally provide a business with lower monthly outgoings, and allow them to take control of their debt, rather than simply giving up and allowing the business to close […]

Tax Errors: 8 Most Common Business Tax Mistakes

Owning your own business is a rewarding experience. However, as many entrepreneurs learn, it also means putting a great deal of work into getting things right – from marketing to consumers, to keeping up with the books. Often, young businesses place the majority of their focus on the concepts of sales and customer acquisition, meaning that taxes can take a backseat. Unfortunately, if you fail to start thinking about your tax needs until your company has already begun to earn revenue, or tax season falls on top of you, your business may already been in trouble. Following, we will cover some of the most common mistakes that businesses make when it comes to filing and paying their taxes. By recognising the areas you’re most likely to struggle, you may be able to avoid tax trouble in the future, and even save money for your business through the use of appropriate deductions. 1.   Failure […]
By |January 21st, 2016|Tax|0 Comments
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    How should you finance your business in today’s world? [Infographic]

How should you finance your business in today’s world? [Infographic]

Small business funding – what a minefield. If a business wants to expand, then it will need money. Unfortunately, many business owners finance their company incorrectly and put its very future at risk. When it comes to financing a business, the most common option is to borrow money and take on debt. But taking out a business loan has advantages and disadvantages. The question is, should you go down this route?  
By |November 17th, 2015|Tax|0 Comments
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    Business debt advice: 17 tips to avoid becoming an insolvent company

Business debt advice: 17 tips to avoid becoming an insolvent company

  Running a company is stressful. Business is full of peaks and troughs and, no matter how experienced we think are, sometimes it’s tough to see the wood for the trees. If you’re currently running your own business and it’s either in debt or you’re concerned about staying out of the red, then you’re not alone. Thousands of businesses struggle to make ends meet. And when insolvency issues start to show up on the horizon, they can often get in the way of a good enterprise. Luckily, this article contains some great business debt advice for you; advice on avoiding unnecessary debt and keeping costs down. We’ve got 17 highly actionable tips that you can use today to help you avoid becoming an insolvent company. With a million-and-one jobs to do, It’s incredibly easy to take your eye off the ball. Before you know it, creditors, debtors and the taxman are all requiring your immediate attention. So […]
By |September 28th, 2015|Uncategorized|0 Comments

Is the construction industry on the mend?

What is the Construction Industry up to? The construction industry in Britain has been on its knees for a long time, but with 4% year-on-year growth forecasts, are things looking up? As the construction industry emerges from the shadows of the recession, there are clear signs that there’s a golden future ahead for all concerned. Despite the optimism, some concerns remain. Repair and maintenance work isn’t growing well and, as such, most of the positive forecasts surround house building and infrastructure developments. The building of new properties has been a particular issue for the whole of the UK, not just the construction industry. There is a huge housing shortage in the UK, yet the population of the UK is obviously increasing. The fact is, Britain is caught up in the worst housing crisis of recent times. Demand is outstripping supply, particularly in London, but this issue presents an opportunity in itself. The government is […]

Debt Problems in the Restaurant trade.

The UK is out of recession, with the British economy slowly recovering and showing positive signs of growth. But a number of businesses are still feeling the effects of recession. Indeed, many are nevertheless suffering from insolvency. Although insolvency rates are generally declining, do our restaurants have reason for optimism? Well, the expert opinions on this matter are quite polarised. The answer seems to be both yes and no. Looking broadly at the numbers, the foodservice industry is growing, just like many other sectors. The value of the market is expected to grow from 2-3%, depending on your source of information. The foodservice industry is undoubtedly heading back to pre-recession levels. But for the small and medium owners, there are increasing levels of debt problems in the restaurant trade.  Debt Problems in the Restaurant Insolvency in the restaurant trade has actually risen by 15% in the past 12 months. While increased consumer spending […]