Free Director Helpline: 0800 987 1010
Liquidation can provide a formal way to bring the affairs of an insolvent company to an end, but it is not without significant consequences. For directors, shareholders, creditors and others connected with the business, the process can result in financial losses, disruption and lasting reputational effects. For directors facing financial difficulties, understanding the potential downsides […]
An Accelerated Payment Notice can create an immediate and potentially serious financial challenge for a business. Rather than waiting for a tax enquiry, appeal or tribunal case to reach its conclusion, HM Revenue & Customs may require the disputed amount to be paid upfront. For companies that have already used the funds within the business, […]
Company administration is a formal insolvency procedure intended to protect a financially distressed company while a licensed insolvency practitioner assesses the best available outcome. Rather than moving immediately towards closure, administration creates an opportunity to rescue the company, preserve its underlying business or achieve a better result for creditors. The process combines legal protection with […]
Choosing an insolvency practitioner is one of the most important decisions a company director can make when a business is experiencing financial difficulty. The right practitioner can help you understand your options, protect your position, and guide the business through a difficult period with clarity and professionalism. An insolvency practitioner is not simply an adviser. […]
Closing a limited company is rarely straightforward when debts are involved. If a company can no longer pay its suppliers, HMRC, lenders, employees, or other creditors, directors must take care to follow the correct legal process. Trying to close a company informally, or allowing debts to build without taking advice, can create serious consequences for […]
Creditors’ Voluntary Liquidation (CVL) Costs A Creditors’ Voluntary Liquidation (CVL) is the most common route for insolvent companies in the UK. It is a formal process initiated by directors when a company can no longer pay its debts as they fall due. In the UK market, the fee charged by an insolvency practitioner (IP) for taking […]
Understanding Company Dissolution and the Case for Restoration Company dissolution refers to the formal process by which a private limited company is removed from the Companies House register and ceases to legally exist. In the UK, this can occur in several ways, including voluntary striking off by directors, compulsory striking off by Companies House due […]
If you’ve set up a limited company but never actually used it, you’re not alone. Many companies are registered with good intentions but never begin trading. The good news is that, in most cases, closing a non-trading company is a straightforward process, provided there are no outstanding debts or obligations. ▶ Watch the video summary […]
Understanding Liquidation and HMRC’s Role Liquidation is the formal process of closing a company, selling its assets, and using the proceeds to repay creditors where possible. Once the process is complete, the company is dissolved and ceases to exist. There are three main types of liquidation in the UK. A Creditors’ Voluntary Liquidation (CVL) is […]
Business Asset Disposal Relief (BADR) has long been a valuable relief for directors and shareholders looking to extract funds from their company in a tax-efficient manner. It is particularly relevant in the context of a Members’ Voluntary Liquidation (MVL), where distributions are typically treated as capital rather than income. However, an upcoming change to BADR […]
