The BCR Insolvency Blog

9 Danger Signs That Your Business Is Insolvent

Posted by Chris Knott on 21-Dec-2018 10:15:29

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.

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Topics: Insolvency Practitioner

Can HMRC Write-off Debt?

Posted by Chris Knott on 14-Feb-2018 12:44:10

If your company is struggling to pay off debts to HMRC then the bad news is the debt won’t be written off or renegotiated.

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Topics: Insolvency Practitioner

Insolvencies Expected To Rise In 2018 Warns ICAEW

Posted by Philip Wood on 08-Feb-2018 11:48:31

Phil Wood, Managing Director of Barringtons Corporate Recovery and President of the Staffs, Salop and Wolverhampton Society of the Institute of Chartered Accountants reports that the Q4 insolvency statistics released today show a mixed picture with a reduction on Q3 company insolvencies but a static picture in individual insolvencies. However, these figures are expected to get worse for businesses in Q1 2018, as consumers are tightening their purse strings post-Christmas. ICAEW reminds businesses facing insolvency to seek help earlier and help encourage recovery.

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Topics: News, Insolvency Practitioner

How Business Rate Changes May Affect Struggling Businesses

Posted by Philip Wood on 08-Nov-2017 11:30:00

New business rate changes, as a result of the government’s recent property valuations, are calculated by looking at a property’s rateable value, and the rate in the pound that is set by the central government. The change in business rates took place in April 2017. Although these changes are considered to be ‘fiscally or revenue neutral’ by the government, the changes will see a redistribution of the tax burden among businesses.

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Topics: Insolvency Practitioner

Why Accountants Should Refer Struggling Businesses To Licensed Insolvency Practitioners Right Away

Posted by Chris Knott on 02-Nov-2017 10:20:00

Every day, accountants undertake a range of services for their clients, including budgeting, auditing, cost analysis and the preparation of financial statements. However, sometimes issues are identified with a business that go beyond the realms of day-to-day activity. 

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Topics: Insolvency Practitioner

Does Your APN Debt Mean You Are Trading Whilst Insolvent?

Posted by Philip Wood on 11-Oct-2017 11:45:00

Since 2016, HMRC are becoming more and more persistent in issuing and attempting to enforce their controversial Accelerated Payment Notices (APNs). An APN is a retrospective tax bill issued in regard to payments made to an Employee Benefit Trust, or so-called ‘tax avoidance scheme’. APNs can be issued to registered companies, partnerships or sole traders, and can demand substantial sums. An APN issued in February 2016 to a British expat based in Spain, for instance, amounted to a claim of £640,000.

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Topics: Insolvency Practitioner

Could An EBT Scheme Lead To A Winding Up Petition For Your Business?

Posted by Chris Knott on 04-Oct-2017 14:40:00

Employee Benefit Trust (EBT) schemes have been used by hundreds of businesses across the country. Dozens of different schemes, some based in the UK and others offshore, have arisen over the years to allow employers to offer tax incentives to employees while paying them their salaries and benefits. HMRC are actively cracking down on EBTs, which had been widely demonised as ‘tax avoidance schemes’.

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Topics: Insolvency Practitioner

Birmingham Company Directors Imprisoned In Fraud Case

Posted by Philip Wood on 27-Sep-2017 10:34:01

Two Birmingham-based company directors were sentenced to imprisonment on 31st July 2017 for unlawfully diverting company funds to their own bank accounts in advance of a winding up petition. The case of the husband and wife duo is a classic example of how not to handle an insolvency situation, and how dishonesty and malpractice made a failed business situation drastically worse for everyone involved.

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Topics: Business Rescue, Insolvency Practitioner, Fraud

Understanding Dividends & Insolvent Companies

Posted by Chris Knott on 07-Jun-2017 13:00:00

Typically, directors (if shareholders too) of a company will obtain the majority of their income via company dividends, which are declared and paid by a company out of its distributable reserves. Taxed at three different rates, dividends can be distributed to any value, as long as these amounts are available from the company’s distributable reserves. Where there are no distributable reserves, and a dividend is still declared and paid, those dividends are illegal.

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Topics: Insolvency Practitioner

Business Insolvency Advice All Struggling Companies Must Know

Posted by Chris Knott on 31-May-2017 16:10:00

If your business is experiencing difficulty, insolvency may seem like the only way out. However, this doesn’t necessarily need to be the case. Not only are there many signs of business struggle that can be turned around well before insolvency occurs, but by reacting quickly, you can mitigate the damage to your business.

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Topics: Insolvency Practitioner

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