Insolvency
Improved Business Models, Not Foreign Players, Will Save English Football
Over the past five months, I’ve posted several blogs highlighting the need for executives and club chairmen to change their business models if they want English football to maintain solvency. It seems English Football League Chairman Greg Clarke may have been following these posts and taken some of my advice as he’s embarked on an…
Read MoreWinding Up Petitions Increase, But Are They Being Served Correctly?
Winding up petitions issued by creditors against firms based in Central London increased by 39 per cent in October 2010 compared with 10.5 percent in the rest of the country, a new study has revealed. The increase is simply a reflection of the government cutbacks and will probably continue throughout 2011. It’s also evidence that…
Read MoreWhy Have HMRC’s Time to Pay Schemes Plummeted? It’s All Politics, Darling
Official figures have revealed a rapid drop in the number of Time to Pay (TTP) schemes approved by HM Revenue & Customs (HMRC) in the past few months. The business support scheme introduced by the Labour government at the start of the recession to support struggling firms was initially overwhelmed, with 82,000 arrangements granted in…
Read MoreSuits You Administration is a Sign of Things to Come
British clothing retailer Suits You has collapsed into administration just eight months after entering a company voluntary arrangement (CVA), which aimed to save the Leeds-based business. Administrators Zolfo Cooper said they would wind down loss-making stores, but support the chain’s successful branches and sell as much of the business and assets as possible. The firm’s…
Read MoreIs the Activroll Case Another Example of HMRC Abusing Their Powers?
It appears that a successful Scotland-based payroll company, which describes itself as one of the country’s fastest growing businesses, has become the latest victim of HMRC’s aggressive collection procedures. Last month, bosses at Activroll, which employs around 100 staff and has offices in the US and Australia, were shocked to discover a public notice in…
Read MoreSmall Businesses Dependent on Public Sector Bank On Xmas Boost for Survival in 2011
An analysis of the government’s recent spending review suggests that George Osborne’s attempts to reduce the UK’s budget deficit of £155 billion will have a devastating impact on smaller suppliers dependent on public sector contracts. According to Andrew Burn of accountancy firm KPMG: ‘For smaller businesses the overall impact is likely to be negative, leading…
Read MoreA Winding UP Petition Doesn’t Have to Signal the End of Your Business
The vast majority of winding up petitions heard in British courts over the past 12 months were presented by HMRC and usually relate to VAT, PAYE arrears or failure of a Time to Pay arrangement. However, receiving a winding up petition from HMRC doesn’t necessarily signal the end of your business. Usually, petitions are preceded…
Read MoreDoomed Businesses Reliant Upon Public Sector Only Have Themselves to Blame
A new study by insolvency trade body R3 has found that almost 10% (148,000) of small businesses fear they could become insolvent if they lose public sector contracts. But any businesses largely dependent on the public sector have only themselves to blame if they become insolvent due to the imminent cuts ahead. Whilst you can…
Read MoreDavid’s Cameron’s Insolvency Law U-Turn Will Please Creditors
It remains to be seen why David Cameron has made a u-turn over plans to radically reform insolvency laws. Before coming to power, the Prime Minister called for the introduction of US-style Chapter 11 rules, which would give struggling businesses ‘breathing space’ to get back on their feet without having to face liquidation. At the…
Read MoreWinding Up Petitions Are the Way Forward for Creditors
In recent years, it has become popular for creditors to issue winding up petitions as a method of debt recovery. It’s something I’d recommend simply because debt recovery laws in the UK are toothless; they don’t bite. If a company owes its creditors money, the creditor will go to county court and get a county…
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