There comes a point when the directors of a struggling business must take stock, assess their situation and try to find a viable solution that can help to bring their business back from the brink. The earlier an insolvency solution…
Whilst the lack of profitability is the largest cause of business insolvency in the long term, in the short term it is the inability to maintain a healthy level of cash flow that can provide the biggest headache for growing…
If you’ve exhaustively chased a customer and there’s still no sign of a payment, it’s time to consider the possible legal action you can take. Sometimes, there’s simply no choice but to to escalate the situation further to ‘encourage’ a…
If there’s one aspect of running a business that’s sure to frustrate, enrage and even keep business owners up at night, it’s late payments. We’re preaching to the converted here, because almost every small business owner out there will have,…
A 21-day moratorium for failing businesses is among suggestions for reforming the UK’s corporate insolvency regime. Will a version similar to America’s Chapter 11 bankruptcy process give firms much-needed breathing space or just allow the less scrupulous to fritter away…
What happens when you receive your next VAT bill from HMRC and realise you simply can’t pay? At first you might think you’re experiencing a minor cash-flow problem, but before you know it, this could turn into an inability to replace…
A director’s duties can be confusing at times. Some company directors fail to properly grasp the distinction between the company as a separate legal entity and their own personal and financial matters. Instead, they have a tendency to view themselves…
It is not actually against the law to continue doing business when you are insolvent. However, the leeway for insolvent trading only applies up until a certain point. If you owe a creditor more than £750 and have failed to…
There’s nothing unusual about the director or owner of a limited company deciding to hire an accountant to help meet the company’s tax and accounting responsibilities. But what happens when things go wrong? What is the director’s responsibility for accountancy…
Making insolvent company transactions even with the most innocent of motives can be misinterpreted. Before entering into a formal insolvency procedure, a company director or office holder may seek to protect their financial position by putting assets beyond the reach…
