Articles Hub
The latest insights and trending topics from Begbies Traynor Group
Understanding IR35 and what to do if you need to close your company
Sweeping changes HMRC made to IR35 legislation in 2021 to reduce tax avoidance have adversely affected many contractors and left them with little choice but to close their companies.
How to improve company cash flow
Company cash flow, or the lack of it, is the most common cause of limited company failure in the UK. When the cash in the business becomes squeezed, it becomes difficult to pay your debts on time, order raw materials, pay staff, fund marketing campaigns and operate effectively.
How to close a company with no money
If your company has no money and you’re ready to close it down, you might be unsure of your options. Voluntary Dissolution, also known as Strike Off, is the cheapest way to close a limited company, but it’s only appropriate for businesses that are solvent (can repay all their debts).
Company turnaround and business recovery
Periods of financial difficulty are nothing new for many businesses. Rising costs, fluctuating customer demand, increasing competition, seasonality and cash flow issues are just a few common problems that can cause firms to struggle.
How can I save my failing company?
If your limited company is struggling with unmanageable debts, cash flow problems or costs that are spiralling out of control, you need to identify and tackle the problem head-on. Burying your head in the sand and hoping the situation will resolve itself will typically lead to more stress, increasing pressure from your creditors and a narrowing of your options.
Can a company CCJ affect me personally?
A County Court Judgment (CCJ) could affect your personal borrowing ability and if left unpaid, a creditor could petition to wind up your company.
What is limited liability for a UK company?
When you run a business, one of the first and most important considerations is its legal structure. In the UK, there are three main business structures for SMEs - sole proprietorships, partnerships and limited companies.
What is a HMRC Time To Pay (TTP) Arrangement?
A Time To Pay arrangement is a way of spreading your company tax arrears over a longer period of time in a more affordable way. An agreement is reached between the business and HMRC in an attempt to provide some breathing space to the business and allow cash flow to improve.
What happens if I cannot pay the VAT?
Struggling to pay the VAT is a common problem for companies, however, this does not mean the problem should not be taken seriously.
Can directors be held liable for company debts?
In the main, the limited company legal structure protects directors from personal liability in relation to business debts.
Director disputes – when one wants to liquidate and one doesn’t – what next?
If you are in serious dispute with a co-director – maybe you have strongly disagreed on a matter of business, for example, or are a divorcing couple - you may want to liquidate the company and move on.
What is an insolvent estate?
An insolvent estate is left when a deceased person’s debts are greater than the total value of assets, and therefore money is owed to their creditors.
I cannot afford to pay my staff’s wages
If you’re unable to pay your staff then it’s also likely that you’re struggling to pay bills from suppliers, HMRC and other creditors when they become due, and at that point, your business could be technically insolvent.
My business is suffering due to depression/ill health
If the stresses and strains of running a successful company have taken their toll on your physical or mental health, it might be time to step back.
