WINDING UP A COMPANY IS EXPENSIVE A winding up petition is definitely the “last resort” for a creditor who is owed money by a company. The reason – it is a costly business. To prove that the debt is owed and issue the petition proceedings, will cost upwards of £2,500...
Brexit dampening UK productivity and insolvency stats
According to Ben Chu Economics editor for The Independent, the Bank's latest forecasts are for output per hour growth to remain subdued over the next three years, growing at well below pre-financial crisis rates. A deputy Governor of the Bank of England has warned that Brexit is hampering the UK’s...
Revenue wins IR35 battle against Former BBC Presenter
Bev Budsworth of The Business Debt Advisor comments, “As a practice that has acted for contractors in the past who have fallen foul of complex tax laws, I keep a keen interest in the latest state of play in the battle ground of IR35. It seems that HMR & C...
SLEEPLESSNESS IS NOT GOOD FOR YOUR BUSINESS
Research has found that workers who sleep less than 6 hours a night are less productive than people who sleep between 7 and 9 hours. According to Matt Walker, professor of Neuroscience and Psychology at University of California, Berkeley, back in the 1940’s people were sleeping over 6 hours a...
Are creditor meetings a thing of the past?
It has been well publicised that The Insolvency Rules (England and Wales) 2016 (“IR’s 2016) had wide-ranging implications for the insolvency sector. One of the most significant changes was the abolition of automatic creditors’ meetings. One of the main reasons for this change was to enable the use of modern...
HMRC TO RAISE £7BN THOUGH ACCELERATED PAYMENT NOTICES
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...
ICAEW URGES HMRC TO SCRAP NEW DEBT RECOVERY PLANS
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...
SUMNERS UP FOR SALE
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...
THE DEBT ADVISOR BUSINESS CELEBRATES 15 YEARS
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.
BANKRUPTCY TOURISM
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.
BUSINESSES FACE A POTENTIAL BACKLASH OVER HOLIDAY PAY
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...
DEBT MANAGEMENT CLOSURES CONTINUE
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...
RETENTION OF TITLE
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...
A GUIDE ON WHAT TO DO WHEN A CUSTOMER GOES INTO LIQUIDATION
“One of my customers has entered into Liquidation and owes me money – will I get my money back?” Within this blog, Molly Monks, the Corporate Insolvency Manager at The Business Debt Advisor, answers some of the questions raised when business owners find themselves faced with a customer entering into...
BLUE MONKEY GAMING UPDATE ON ROT
BLUE MONKEY GAMING UPDATE ON ROT Further to the November 2014 Insolvency Practitioners Associations guidance paper on Retention of Title Claims and Molly Monks subsequent blog “What is Retention of Title?”, a recent case has examined the scope of what an office holder (Liquidator/Administrator etc) duties are (or not as...
DOES ‘BRITISH SUMMER TIME’ AFFECT BUSINESSES?
The clocks are due to "spring forward" on the 29 March 2015 and business owners will find that not only have they lost an hour they may spend a further hour amending their till and alarm systems! But what positive effects can business owners look forward to with this extra...
WILL CVA SAVE 151 YEAR OLD ENGINEERING BUSINESS?
The team at The Business Debt Advisor were consulted in late March 2015 to review the financial position of a company based in Derbyshire employing 30+ staff which undertakes large engineering projects for a range of industries. Funders to the business had recommended the business seek insolvency advice as the...
NEW GOVERNMENT FACES POTENTIAL ‘DEBT HANGOVER’
Figures published today by the Insolvency Service show that personal insolvencies in England and Wales decreased again in the first quarter of this year to 20,826 a reduction of 18.6% on the same period 12 months ago. This figure comprises 4,209 bankruptcies, 6,213 debt relief orders (DROs), and 10,405 Individual...
PRE-PACK ADMINISTRATIONS AND ‘THE PRE-PACK POOL’ – CHANGE ON THE HORIZON
Pre-Packing refers to the practice of arranging the sale of a business, either in whole or in part, prior to the company entering into formal insolvency. The proposed sale is then executed on the appointment of an administrator and often the creditors of that company have no knowledge of the...
BARRISTERS – ‘DON’T BURY YOUR HEADS IN THE SAND!
Bev Budsworth, managing director of The Debt Advisor, is today warning barristers not to ‘bury their heads in the sand’ and to make sure they are fully prepared for the impending July tax bill deadline at the end of the month. Bev commented: “The next fortnight is really the crunch...
BUSINESSES LOSING OVERDRAFTS AT ALARMING RATE
Funding Options, an online business finance supermarket have surveyed data held at Companies House on 160,000 businesses and found that UK SME’s unable to access traditional term loans and overdrafts, were now using £76Bn of alternative finance. It found that alternative lending to SMEs is now equivalent to 46pc of...
PRE PACK POOL GOOD FOR DIRECTORS AND THEIR BUSINESS ADVISORS
In June 2014, Teresa Graham published her report into pre-packaged administrations and the way in which they were conducted. The report, commonly referred to as ‘The Graham Review’ acknowledged that the method of pre-packing a distressed business for sale does have a place within the UK insolvency regime. However, the...
MEMBERS VOLUNTARY LIQUIDATION – WHAT’S YOUR EXIT STRATEGY?
It is commonly believed that Insolvency Practitioners can only assist when a Company is insolvent, or there is another cause for concern. However, Insolvency Practitioners can be called upon for advice and assistance with the voluntary closure of solvent businesses, and the creation of a suitable exit strategy When might...