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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 […]
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    Debt problems for Pub Owners – is there any help on the horizon?

Debt problems for Pub Owners – is there any help on the horizon?

Pubs & Debt Problems The British pub industry has been suffering for a long time. In fact, as financial bad luck stories go, with about 29 pubs closing in the UK every week, it’s one of the most shocking.  If you were to plot the number of pubs in operating in the UK on a graph, you’d see a very clear, steady and sharp decline. There were 99,000 pubs in 1905, 75,000 in 1969 and 48,000 in 2013. The problems go deeper than just numbers though. Even as recently as 2000, there was still an interest in meeting socially in a pub. The recession clearly didn’t help, but in 2015, we can point to taxes, rules and cultural shifts as the major factors that are hurting British pubs. News of unpaid debts, unreliable supplies, administration and debt restructuring are two-a-penny in this market. Can anything be done? Alcohol has had some dreadful […]

CCJs – What Can I Do?

You’ll liable to have a County Court Judgment if someone or a business applies to Court for money owed by you to them. In many instances CCJ are incorrectly registered, however once they have been, it can be quite time consuming and potentially expensive to have them removed. However, there are ways of heading off the distress a CCJ can bring… Below I’ve listed 5 different ways to stop CCJs from being made. However, for those unlucky enough to have CCJs registered against them or their business, I have also listed Four Ways of Dealing with CCJs (once registered).   Five Ways of Avoiding CCJs There are two distinct times when you can act. Prior to having CCJs registered, you will receive an application – this is your early warning, and you may be able to head a CCJ off at this stage.   You can pay in full. Choosing this options means that you don’t have […]

CCJ – What is it?

Have you been handed a CCJ? Are you worried about what it might mean? CCJ stands for County Court Judgment. When a person or business thinks that you owe them money, they can apply to the County Court for a judgment that will help them claim their funds. People or businesses usually apply for a CCJ when the debtor is ignoring their letters or calls, or if they can’t agree on a debt (or repayment schedule). The person or business behind the County Court Judgment can’t just apply for a CCJ whenever they want. They need to warn the debtor first via default notice or a ‘letter before action’. Understanding the significance of a CCJ is vital. When someone applies for a CCJ, the court investigates the issue. So here’s the point – if you’ve received a CCJ then the courts have already decided that you do indeed owe the money in […]

HMRC’s Time to Pay – how does it work?

You may well have heard of the Time To Pay initiative. As a business owner, if you’re in financial bother and you can’t pay your VAT, PAYE or your corporation tax on time, it could be an answer to your troubles. But while Time To Pay might well be a viable solution, see if it’s right for you. What is Time To Pay? Just as it sounds, it’s an installment plan that gives you more time to settle your tax debts and bring your arrears up to date. HMRC will not reduce the tax you owe, but with Time To Pay, you’ll be able to spread your repayment of tax arrears and get some breathing space. HMRC will continue to charge you interest, but as long as the Time to Pay is kept to, they will stop penalties. Why consider a Time to Pay Arrangement? Maybe you’ve got cashflow problems? Perhaps you’ve had […]

Is your business in financial trouble?

Business In Financial Trouble? Business is tough. Competition is rife in almost every industry and it’s common for businesses of all sizes to face difficulties, especially during and coming out of a recession. If your business is in financial trouble and you’re feeling the strain, it’s going to be useful to know what you can do and what you can’t. Knowledge is power, after all. Probably the first thing that you need to do is to take a realistic look at your situation and work out whether you need to cease trading. Is your business in a lot of debt? Are you accumulating CCJs? Its helpful to be clear that your business is separate to your personal life – however, if your company is insolvent, but continues trading and incurring debt, you might be personally liable for the company’s debts if a wrongful trading or trading whilst insolvent action is taken […]

Can Bailiffs Force Entry?

If your debt problems have escalated, you might be facing action and a visit from the bailiffs. A bailiff is someone who works on behalf of the courts to collect debt. As a result of this, you might be concerned that the bailiffs assigned to your case can force their way into your home or place of business before taking your belongings. If that sounds like you, then you’re not alone – it’s a common worry. Usually, you don’t have to open your door or let them in, so can bailiffs force entry? Well, they are entitled to force entry into your home or place of business, but only under certain circumstances. Put simply, it depends on the type of debt that they’re collecting and whether they’ve visited you before. they’re chasing up an unpaid magistrates’ court fine. they’re chasing up an unpaid county court […]
By |February 14th, 2015|Bailiffs|0 Comments

Liquidation – Some Practical Tips

This is not a guide to liquidation, but a look at some of the important issues that arise during the process that you might need to consider… There are a few guides available that will explain the different types of liquidation along with the liquidation process – indeed on our Business Shut Down page, I explain the liquidation process and options at some length.  The purpose of this blog is not to repeat that information, but to give some practical advice and tips for you to consider alongside the insolvent company liquidation process (also known as Creditors Voluntary Liquidation and CVL). Having decided that the company cannot continue in its current form, your next most important decision is whether the business should just shut down and disappear completely, or whether you should start again? The legal […]

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 […]

Better off living in Middlesbrough than Newcastle?

The North East has the country’s highest rate of bankruptcies and IVAs. The Insolvency Service has released regional insolvency figures showing that Bankruptcies, Individual Voluntary Arrangements and Debt Relief Orders have shot up nationwide within the last 8 years. Total rate of insolvencies leapt from 7.2 per 10,000 people in 2000 to 30.9 in 2009, a four-fold increase, before falling back to 24.5 in 2012. Worryingly for the North East, it has been the region with the highest rate of bankruptcies and IVAs every year, for the past 5 years. By the end of 2012, 0.33% of the region entered into bankruptcy, IVA or a debt relief order, which was 35 per cent higher than the average for the rest of the country. Below is a graph showing the growth in personal insolvency in the country as compared to the North East. Table 1. Rates of personal insolvency (per 10,000 people). The North East vs […]