HM Revenue and Customs (HMRC) has expressed concern about the use of this process known as Moneyboxing, but what is it? Begbies Traynor discusses.
A rescued company may be described as a 'going concern' because it is expected to trade profitably and without distress for at least 12 months.
Given the complexity of many commercial leases, it is vital that you understand your rights when it comes to signing a personal guarantee for a lease. The ramifications of failing to meet lease repayments are serious, but knowing the consequences to you personally if your business starts to struggle financially, could help to protect your home and other assets.
Employers have a duty to ensure the health and safety of their employees and members of the general public when they are on business premises.
Overdrawn directors’ loan accounts can come to be a real cause for concern; particularly in the context of a company entering insolvency.
As a formal alternative to bankruptcy, an Individual Voluntary Arrangement is more flexible in that it allows a company director to remain in their position. Equally, you can be appointed as a new company director if you have an IVA, provided there is agreement from other members, and that existing directors are aware of your financial position.
What Is A Restoration By Court Order? And Why Are Companies Reinstated To The Register?
The pressure placed on government to reduce business rates has led to a range of reliefs and exemptions being made available, with some local authorities also offering discretionary reliefs to local businesses that meet their criteria.
In the main, the limited company legal structure protects directors from personal liability in relation to business debts.
What are Unlawful Dividends? Begbies Traynor is the UK's market leader in business recovery. With over 100 UK offices and 1000 staff we are well positioned to assist you.
Dissolution is not an appropriate solution for striking off (dissolving) a company with debts. Liquidation is recommended for several important reasons.
When a business fails there are early warning signs to look out for that can help you deal with the matter before it becomes too damaging. Lack of cash often the first indication, and this may materialise as an inability to pay the bills on time.
So although administration and liquidation are fundamentally different in their approach to the problem, both are processes used to limit the damage for companies and their creditors. The more hopeful option of the two is administration and there are eligibility criteria and potential benefits of this process for companies and creditors alike.
If you are thinking of resigning as a company director, there are specific steps you and the company must take.
Directors of an insolvent company are protected from being held personally liable for company debts (limited liability), except in the event of misconduct.