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…
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Tag: Debt
What can unincorporated businesses do when struggling with debt?
The Bank of England’s latest interest rate hike to 1.25% in June might not take us anywhere near the terrifying heights of 17% seen back in 1979, but for many it may turn out to be the final financial straw. Compounded as it is by a cost of living crisis where inflation has already hit a 40-year high of 9.1% and is expected to go into double figures later this year, the economic situation is grim…
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Closing your company: Strike off versus Voluntary Liquidation
The impact of the last two years
It goes without saying that many thousands of Companies have struggled since the beginning of the Covid crisis. Many of those Companies would have utilised the various schemes and assistance put in place by the government, banks and HMRC.
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How do I know if my company is insolvent?
There may be many reasons why a business owner or director continues to trade a distressed business rather than seeking professional assistance. In the present circumstances, where government support has propped up businesses, it may even be the case that your company has become insolvent without you realising it…
Personal guarantees: When liability isn’t so limited…
The concept of limited liability is not new. English law granted this status to monastic communities and trade guilds as early as the 15th century and the protection was extended more generally by the Limited Liability Act of 1855, despite fears expressed at the time that it would lower standards of commercial behaviour…
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Knowing when to stop trading…
That a business can become insolvent is a fact of life. The well known insolvencies involving some of the country’s best known retailers and manufacturers shows how global economic decisions can affect local trading conditions, both in terms of speed and severity.
Continue reading Knowing when to stop trading…