Director Advice
What is an insolvency practitioner and what are their duties?
An insolvency practitioner (IP) is licensed to act on behalf of companies and individuals when they are facing insolvency or acute financial distress.
What actions can creditors take against my company?
If you owe money to your creditors that you can’t repay, they can take legal action against you which could potentially lead to the closure of your business.
I cannot afford to pay my staff’s wages
If you’re unable to pay your staff then it’s also likely that you’re struggling to pay bills from suppliers, HMRC and other creditors when they become due, and at that point, your business could be technically insolvent.
What is ‘moneyboxing’ in company liquidation?
HM Revenue and Customs (HMRC) has expressed concern about the use of this process known as Moneyboxing, but what is it? Begbies Traynor discusses.
Can I lose my home due to business debts?
In general, your home is protected by the ‘veil of incorporation’ that separates the company as an entity from you as a director.
Can I go to jail for business fraud? Could I be arrested?
If your company is forced into liquidation, the actions of all directors leading up to insolvency will be investigated by the liquidator.
My business is suffering due to depression/ill health
If the stresses and strains of running a successful company have taken their toll on your physical or mental health, it might be time to step back.
Find a local insolvency practitioner for your company
Finding a local insolvency practitioner you can trust is of paramount importance when you believe your company could be heading towards insolvency. If your company is showing signs of becoming insolvent – or perhaps it already is insolvent – a licensed insolvency practitioner will be able to help you understand your position, explore your options for recovery or closure, and explain what each course of action will mean for your company, your clients, and yourself.
Joint and Several Liability Notices: Directors of insolvent companies face greater personal exposure to tax liabilities
While company directors are generally protected by limited liability, recovery powers granted to HMRC in the Finance Act 2020 mean directors can face greater personal liability for tax debts held by the company in the event of insolvency.
The Rating and Director Disqualification Bill
New legislation may mean former company directors can be retrospectively issued with a disqualification order if they misuse the dissolution process.
Can an accountant close my company?
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.
Can I resign as a company director?
If you are thinking of resigning as a company director, there are specific steps you and the company must take.
Is a company director entitled to redundancy pay if their company is insolvent?
It isn’t common knowledge but directors may have a claim for redundancy when their company enters liquidation. They must be able to prove their status as an employee of the company, and fulfil more than an advisory or non-executive role.
Top 10 Tips for Dealing with Company Cash Flow Problems
Experiencing business cash flow problems? You will want to to redress the position. We list the Top 10 Tips for Dealing with Company Cash Flow Problems.
Managing business cash flow and profitability
Making sure that you have a realistic cash flow in place together with project management analysis is the only way to ensure you can add the appropriate mark-up and margins to the overall costings of the project so that it will be profitable for you.
