November 19, 2014
In November 2014 the Insolvency Practitioners Associations
released a new guidance paper on how Retention of Title claims are handled within
an insolvency situation. Here, Molly Monks of The Business Debt Advisor provides a
basic guide to Retention of Title ("ROT") and its uses. What is Retention of
Title? A clause stating that title to goods supplied will remain
the property of the supplier until monies owing have been paid. Who can it benefit? It can give protection to anyone who supplies goods,
typically used in the trade sector. Is it as simple as
"mine until you pay"? No, the ROT clause must be accepted and ...
November 05, 2014
THREE MORE FIRMS FALL AMID TIGHTER REGULATION This morning news has emerged that three Debt Management companies located in the North West have gone into administration, leaving behind up to 2,500 clients who were actively trying to reduce their debts stuck in limbo. This comes around three weeks after the FCA warned customers to stop making payments after it emerged the companies couldn’t pay their creditors. The companies are; One Tick, owned by Gary Gregson, Gregson and Brooke owned by Shalles Onido and The Money Management Services, owned by David Brennan. All of the companies are linked through Gary Gregson ...
November 04, 2014
In a judgment expected at 10:30 am today, employers across the country will find out whether they cumulatively owe potentially billions of pounds to employees over unpaid holiday claims. If the controversial ruling is upheld, it could see many businesses fall into turmoil as they try to cope with pay dated back as far as 1998. The Employment Appeal Tribunal will today meet to rule on whether businesses should be forced to backdate holiday pay as far as 1998. In order to do so they will incorporate the Bear Scotland versus Fulton Case which focuses on the interpretation of the ...
October 28, 2014
Bankruptcy tourism is on the increase in the UK. Our relatively soft-touch regime whereby you can be discharged from bankruptcy within a year is becoming more and more appealing to Europeans, more notably those from Ireland and Germany. These countries have much harsher bankruptcy systems than here in the UK. It can take up to 7 years in Germany and 3 years in Ireland to be discharged, compared to the one year automatic discharge granted in England and Wales – unless reason is shown to the contrary. Under the EC Regulation on Insolvency Proceedings, a debtor can petition for bankruptcy ...
September 29, 2014
I recall fairly vividly the excitement of pulling together everything necessary to set up a business as an insolvency practice in 1999. Having spent 17 fantastic years at Deloitte latterly as an insolvency manager, I was ready for the next chapter. This was one of the most exciting times of my life. I worked into the early hours of the morning costing every item of equipment, studying statistics on the marketplace and preparing cash flows, profit forecasts and balance sheets. I had a lot of support from Hurst Accountants who were contemplating setting up an insolvency arm. They had insisted ...
August 05, 2014
Nearly 120 jobs have been lost after payday
lender The Cash Store went bust. The company which is based in Stockport has
now entered into an administration with FTI Consulting appointed as
administrators. Administrators have confirmed that 13 jobs have been lost at
the Stockport headquarters. The Cash Store Ltd is a subsidiary of The
Cash Store Financial Services Inc based in Alberta, Canada. The company has 506 branches in Canada and
27 across the UK, although many of them are in the North West. Administrators from FTI Consulting said:
"Cash Store was loss making and had been reliant on funding from its
Canadian parent company which was ...
August 04, 2014
Manchester-based business recovery business, The Business
Debt Advisor, has been appointed to advise the directors and shareholders of
Sumner’s Media City Limited (SMCL), a TV post production company based at
MediaCityUK in Salford. SMCL is a post production facility trading out of The Pie
Factory at MediaCityUK. Founded by husband and wife team, Andy and Janet
Sumner, the company was incorporated in 2007. It began trading in 2013
following the winding down of Andrew Sumner & Associates Ltd (Sumners) which
was founded in 1992 and, over 20 years of trading, became one of the largest
post production companies outside of London with a turnover of £4.5M. Sumners faced ...
July 31, 2014
According to the ICAEW, HMRC should scrap
plans for new debt recovery powers because the process is “unconstitutional”
and “wrong in principle”. Under the new plans, HMRC will be able to
deduct tax owed from a debtor’s bank account proving at least £5,000 is left
across all their accounts including ISAs. HMRC has insisted that these measures would
be used against those who have repeatedly refused to engage with them and would
be used as a last resort, but the ICAEW have deemed that the proposals fail to
meet the criteria of being “fair, proportionate and accompanied by robust
safeguards”. The ICAEW said: "It is necessary to go
July 23, 2014
HMRC expects to raise about £7bn though
issuing accelerated payment notices to individuals involved in tax avoidance
schemes. Notices relating to known tax avoidance
schemes will be issued to 43,000 taxpayers as HMRC clamps down on the use of
such schemes. The Revenue are expecting to raise around
£5.1BN from the 33,000 individual tax payers. The remaining 10,000 taxpayers
are businesses and are expected by the Revenue to contribution the balance of
£1.9BN. Under the recently introduced ‘Accelerated
Payment’ rules, HMRC will be able to make taxpayers pay disputed tax in advance
rather than waiting for the outcome of a tax tribunal ruling. If the taxpayer
goes on to win ...
July 03, 2014
According to research from Manchester online commercial debt
recovery law firm Debt Guard Solicitors, NORTH West small and medium-sized
companies are carrying up to £1.5m of trade debt, research has suggested. Trade
debt means monies owed to the companies for goods and services supplied to the
The smallest companies, with 1-9 staff and a turnover of less than £2m were proportionately
the hardest hit the debtors owing amounting to 19% of turnover. The findings were based on official account details
submitted to Companies House by 819 North West SMEs. The research identifies
firms in Liverpool and Blackburn as carrying higher than average amounts of
trade debt, ...