With the annual increase in minimum wage, it shouldn’t come as a surprise that more and more companies are being caught underpaying their staff.
In recent years HMRC has been actively seeking out hearings involving breaches of the National Minimum Wage Act. These are part of a nationwide inspection campaign being run by the Government to enforce the national minimum wage. As a result, HMRC identified a record 15.6 million underpayments in 2018. This high-profile case has helped clear away some of the confusion around minimum wage deduction laws.
If you are in a position where cash flow can no longer support your business, it may be time to consider liquidation. In today’s turbulent world, there is little stigma attached to a company reaching this stage. External forces are complex and unpredictable, and no organisation is immune to the risk.
When there is a dispute at the heart of a company, it can be confusing, traumatic, and difficult to resolve. One party wants to abandon ship, the other is desperate to continue.
If one director in a 50/50 shareholding wants to liquidate and the other does not, stalemate, tensions, and dark clouds quickly follow.
Your company is entering liquidation. All eyes are focused upon the situation, and everybody has questions.One of the most important ones is who is going to get paid? What is the pecking order when it comes to dissolving assets?
All the political and economic indicators tell us that we are probably looking at some turbulent trading times over the next two or three years, with the uncertainties regarding Brexit and the possibility of a General Election (with or without a General Strike!)
Topics: Business Rescue
Insolvency. It’s not a word anyone wants to hear. Yet with the global financial climate in turmoil it is a subject that many have to approach at some stage during their company’s journey.
Topics: Insolvency Practitioner
Going into administration, or when a company “calls in the administrators”, is a legal process whereby the company hands over control to an insolvency practitioner, who acts as an administrator. Creditors may not take legal action against the company during the period of administration, and cannot apply to have it wound up, without the consent of the court or the administrator.
A company may consider administration as an alternative to liquidation if it believes things can be turned around. Therefore, it is an option for potentially viable businesses, which can deliver the best possible outcome for all stakeholders if it is successful. A successful administration can result in a solid business that is trading profitably and can engender confidence that its affairs are under control and that its prospects for continuing success are based on solid foundations.
Even the best managed companies sometimes hit a rocky patch where mounting debts can no longer be paid through cashflow or normal financing. This is commonplace and no cause for embarrassment. Many would say that it is simply a part of doing business.