Articles Hub
The latest insights and trending topics from Begbies Traynor Group
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 happens if my Time to Pay Arrangement fails or is breached?
Although negotiating a Time to Pay Arrangement with HMRC can be challenging, in many respects, this is the easy part. This is because, once the Time to Pay Arrangement is agreed, you’ll not only have to pay HMRC the money you owe in instalments over the next 6 to 12 months, but you’ll also have to pay your ongoing VAT, PAYE and corporation tax bills on top of this.
Advice for directors with PAYE and VAT arrears
HMRC is the most common creditor for UK businesses and it’s easy to see why. When faced with a cash flow crunch, rather than not paying key suppliers that your business relies on, the easier option might be to delay a VAT or PAYE payment to HMRC. However, HMRC has enforcement powers that go beyond that of other creditors, which makes building up PAYE and VAT arrears a risky situation to be in.
My company owes HMRC corporation tax and VAT but I cannot afford the payment request
I'm really worried and would like some advice please. I am the sole director of a limited company providing IT consultancy and have recently accepted a permanent job with another company starting in two weeks. My company will then become dormant. I have been naïve and silly and taken too many dividends and consequently can't pay back the corporation tax and VAT owed which totals £25,000.
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.
What happens when a company can’t pay its Corporation Tax?
Corporation Tax arrears and cash flow problems are often a precursor to insolvency which is why early advice is key.
Options for directors falling into PAYE arrears
If your company is falling behind with PAYE tax payments, this is a serious indication of insolvency and you should take early advice to appease the situation.
What’s In a Name? Understanding Phoenixism and the Insolvency Act
One of the many responsibilities of a limited company director is to ensure their company is run in accordance with the Insolvency Act 1986 at all times.
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.
What is the role of the Official Receiver?
An Official Receiver's role in an insolvency procedure is to oversee compulsory liquidations, investigate failings, and act as provisional liquidator in some cases.
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.
