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Crisis in Private Rentals — Bad News for Landlords and Tenants

Figures just out show that private rents increased in the past 12 months at a rate well above inflation. At the same time, as prospects seem to be diminishing of the renters reform bill passing before the election, record numbers of tenants are being forced to move. It might seem at a casual glance that this is all great news for buy-to-let owners, but it’s actually not that simple. If you’re a private la
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Director’s Loan Account — What Happens if the Company Is Liquidated

In my last post, I talked about the effect of liquidation on a company’s directors, mentioning that one potential problem arises if a director has a Director’s Loan Account with the company. So, what exactly is a Director’s Loan Account, and what are the dangers if the company is liquidated? What Is a Director’s Loan Account? A director is entitled to draw funds from the company as a loan, and
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Do You Need to Pay HMRC First if You’re Insolvent?

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
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Good News and Bad News for International Business

During the pandemic, SMEs worldwide assumed this was as bad as it got, and by this time things would have improved. In fact, 2023 seems to be even worse than the height of lockdown — in fact, the worst the economy has been since 2008. Strangely, though, this doesn’t appear to be causing gloom among business owners. A recent survey suggested that the vast majority of SMEs in the international business community are op
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Are Supply-Chain Delays Killing Your Business?

Business owners generally focus most on the sales that bring in the income, rather than on their suppliers. That’s understandable, but it can also be short sighted. Recent research by retail bank Aldermore has found that well over half of SMEs have suffered supply-chain problems in the past year — and this has cost a total of £1.9 billion. Why Are There Supply Chain Delays? Disruptions to supply chains have been goin
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Are We Producing a Financially Illiterate Generation?

While the current economic problems in the UK can’t really be laid at the feet of consumers, there’s no doubt that widespread poor financial management isn’t helping matters. This ranges from naivety in investment to a general “have it now, pay tomorrow” culture that’s fuelling debt. A recent survey suggests that this isn’t set to improve. The study, by Compare the Market and MyBnk, found that only 41% of young adult
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Restructuring Plans — The Way Forward for Insolvency?

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
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Landlords — Do Your Carbon Monoxide Alarms Meet the New Rules?

The many regulations imposed on landlords of residential rental properties may seem a hassle at times, but most are simply what a responsible landlord would want to conform to. This is certainly true of the rules around carbon monoxide alarms — and these are to be updated in a couple of months. Why Are Carbon Monoxide Alarms Essential? The last thing any landlord wants is for tenants or their guests to be killed by c
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Commercial Rent Arrears — Six Months’ Moratorium

During the Covid lockdown, many businesses unable to trade or use their premises fell into arrears with their commercial rent. Although businesses are generally up and running again, many have found difficulties in catching up with these arrears. This has obviously also impacted on landlords’ finances, but the government’s Commercial Rent (Coronavirus) Act 2022, which came into force on 24th March, has se
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What Can I Do About Overdue Payments?

Overdue payments are a fact of life in business, and unfortunately the situation only looks like getting worse. High inflation is going to squeeze everyone’s cashflow, and even if your customers are trying their best to keep up payments, they might be chasing bad debts themselves. So what strategies are available to you, if you want to chase money owed to you? Using Your Customer Relations When you have a probl
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