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If a company enters into any form of insolvency, whether it’s a company voluntary arrangement, a pre-pack administration or a restructuring plan, it’s likely that one of the major creditors will be HMRC. It’s often believed that any taxes owed have to be paid first, before any other debts have to be considered. However, the situation is far from simple. Some recent cases have supported HMRC’s claims, while others hav

There have been many signs recently that the economy is in trouble, most obviously the most recent announcement of interest rate rises. Another troubling sign, though, has been given less publicity — a sharp rise in business insolvencies in May. What’s behind this, and what does it mean for you as a business owner? The Rise in the Figures Business insolvency figures have been rising for a while, but it’s been possibl

In these times of financial stress, large numbers of people, both consumers and small business owners, are seeking debt advice. A good deal of the advice out there is excellent, but there are exceptions. There’s been concern expressed for some time about the referral fees charged by debt packaging companies and whether this creates bad advice. It seems that the Financial Conduct Authority (FCA) share this concern, an

Are you being held back by cash flow problems caused by late payment of invoices? You’re not alone. A recent report by Time Finance found that SMEs are owed an average of about a quarter of a million pounds in outstanding invoices. At the same time, the Federation of Small Businesses (FSB) has reported that 52% of small businesses have experienced late payments. Are you among these? And, if so, what can you do about

The Insolvency Service has released figures which show that nearly 88,000 Individual Voluntary Arrangements (IVAs) were registered in England and Wales in the course of 2022. This represents the highest figure since 1990, when records began. So what are IVAs, why have they increased so much, and what might it mean for you as a creditor? What Is an IVA? Introduced in 1986, an IVA is a formal alternative to bankruptcy

The cost of living crisis is hitting people in a wide variety of ways, and recent research has illustrated another. In the twelve months since January 2022, the number of people seeking help with their debts has increased more than threefold — and most cite rising prices as the main reason. The Rise in Debt Enquiries A survey was carried out by debt advisor MoneyPlus Advice, after they saw initial enquiries rise by 3

During 2022, a combination of soaring prices (especially energy prices) and income lagging behind pushed the economy into recession. The bad news is that, according to forecasts by KPMG, the recession is likely to last for the rest of 2023, with output falling by 1.9%. So why are things so bad, and what’s it likely to mean for you and your business? What’s Causing the Recession? The main driving force of the recessio

While more traditional insolvency procedures — e.g. Company Voluntary Arrangements (CVA), “pre-pack” Administrations and Schemes of Arrangements — are sometimes the best way forward, they can have disadvantages. Winding a company up isn’t always in the best interests of the creditors, any more than the debtor, but there has often been little choice. However, in 2020 a new approach was introduced — Restructuring Plans

When we set up a business, we’re not thinking of having to close it eventually. The reality is, though, that most businesses do eventually close, even if it’s after a good run. However, there are right and wrong ways of going about it. Why Might You Need to Close Your Business? It’s a sad statistic that a fifth of all businesses close within a year of being launched. There are various possible reasons. Maybe they hav

Cryptocurrencies, like Bitcoin and many others, have being growing in popularity for several years, but have posed a challenge in several legal areas. This has included insolvency laws. After all, how can you include as an asset something that’s not only non-physical, but also anonymous? However, English law has recently started trying to define cryptocurrencies as assets, so what does that mean for insolvency law? T