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Administration

Retention of Title Guide for Directors

Retention of Title or ROT as it is more commonly known is an instrument in supply of goods contracts whereby the supplier will attempt to take security over assets provided by retaining legal ownership until payments has been received. If you have been unable to pay a creditor and they are no longer willing to wait for their money they may approach you or turn up at your premises advising they have ROT a demand to remove their goods. It should be noted that the courts have repeatedly confirmed the onus is on the supplier to ensure the clauses and validly constructed, incorporated and enforced. Therefore, if they are being overly aggressive they may be trying to ensure you do not have time to take advice.This guide will advise you on common pitfalls and how […]

New HMRC cash grab

Under new proposals announced in the Budget 2014 small print, the taxman will be able to access personal and business bank accounts to directly take any arrears of tax you may owe. How will it work? If you, or your business owes more than £1,000 in arrears of tax (inclusive of all forms of personal or business taxation), you could be at risk. Under new proposals due to come into force in April 2015, HMRC will be able to dip into bank accounts. They will not require a court order, nor will they have to issue formal proceedings – as long as they have sent reminders chasing tax arrears. So if you or your business owe more than £1,000 and have been sent correspondence from HMRC, under the new proposals, cash can be taken directly from your bank accounts to settle HMRC debts. HMRC will be required to leave a minimum of […]

Personal Guarantees

There are several firms that have cropped up within the last few years offering to negotiate or write off your bank or trade personal guarantees. Their fees vary greatly, as in our experience, does their success rate. Many of our clients have given personal guarantees, either to banks, finance companies, trade accounts, or to support asset purchases.  These personal guarantees ‘crystallise’, or in other words they become payable when they default on their agreements, or enter a formal insolvency, so its important for our clients to know that when we are assisting them, we are looking at all of their debt, including guarantees. So how do we go about this? How does it work? First of all, you need a ‘catch all’ plan to deal with the problems within your business – that’s where we can fit in. Robson Scott assesses the current state of your business, and works out with you, […]

Help for Directors – Pt 1

Director’s Disqualification By way of introduction, I have written this piece to highlight the various pitfalls and knock-on effects commonly seen by Directors whose business has gone through a formal insolvency process. Due to the scope of the assignment, I have broken the blog into two parts, Director’s Disqualification and ‘Directors Being Sued’. This first part will concentrate on the why’s and wherefores of disqualification proceedings, detailing how common they are, the potential effects of disqualification and concluding with advice on how to proceed if there is a chance this affects you. The second part will deal with what happens when directors are sued by Insolvency Practitioners. It looks at the types of action that can be brought by liquidators and administrators against directors, shareholders, and even their families, and examines ways to lessen their effect. Director’s Disqualification Process When a company enters into either Creditors Voluntary Liquidation, Compulsory Liquidation or Administration, the […]

Management of bad debts

It’s a fact of business life that your business will suffer bad debt. It’s also a fact that most of the paperwork you receive informing you of the bad debt and the subsequent insolvency proceedings can be somewhat difficult to understand. Also, if you’ve received the insolvency paperwork, you’re not getting paid, right? Not necessarily…. The North East Business Support Scheme (NEBSS) has been set up by Robson Scott Group to provide a service to North East businesses to manage and maximise their returns from insolvent customers. We will review the paperwork, and give you a clear, concise outline of the process (whether that be Pre-pack Administration, Liquidation, Company Voluntary Arrangement “CVA”, or an “IVA”). We will then contact the insolvency practice dealing with the case, and come back to you with a realistic appraisal as to whether you will get your money back, if so, how much and when. We will […]

Closing down your business

“It costs less than £100 to set up a limited company, but the costs of closing down can be considerably higher, especially if the wrong approach is taken!” There are three main ways of closing down a limited company, with similar procedures available for sole traders or partnerships. The way that suits you best will depend on the circumstances of your company. As there are such differences in the costs and implications between the three, it is well worth carefully examining which means of business closure before you decide. Below we examine the 3 main options. Dissolution (also known as ‘Striking off) This is applicable only if you have a company that has ceased trade for over three months and no longer has any assets. Before dissolution, your company must have already paid off all its debt – this is important, as if you dissolve a business whilst debt is still outstanding, […]

Thatcher’s legacy

Thatcher’s insolvency legislation is backbone to current business enterprise With the recent death of Margaret Thatcher, I thought it opportune to have a look back at the huge effect she had on the way we deal with insolvencies in the UK. Towards the end of 70s and the beginning of the 80s, Britain was in the grip of a recession, suffering a lack of confidence in its own business prowess, and facing a need to move away from its core raw material industries. Much wrong was done in the need to change Britain’s direction, and many communities were ripped apart in the way it was approached, especially across the North. However, when Mrs Thatcher was appointed prime minister in 1979, she also set the UK onto a path of business reform that completely changed the way businesses operate. Having loosened the grip of the unions, she also brought in new measures in line […]