Insolvency Practitioners in the News – Bournemouth and Dorset 2021
We often submit insolvency related stories and comment to the business editors of some of the key
publications in the Bournemouth and Dorset area. Often, the editors choose to use them as the basis
for articles in their publications, and we are pleased to feature links to these stories on this page.
Simply click the link to read the full story as published.
Dorset Business Focus magazine 17th November 2021: Toxic Debt now affects 52% of UK Businesses
Toxic debt is on the increase. Despite the huge Government Coronavirus support package for UK Businesses, corporate debt has increased to £6.6 trillion.
For the full story: https://dorsetchamber.co.uk/toxic-debt-now-affects-52-of-uk-businesses/
Dorset Business Focus magazine 28th October 2021: Personal Guarantees – what you need to know
In recent months we have seen an increase in directors asking what their exposure is to claims under Personal Guarantees and how they should respond to such claims.
For the full story: https://dorsetchamber.co.uk/personal-guarantees-what-you-need-to-know/
Bournemouth Echo 15th October 2021: Bosses advised to act in case Business Asset Disposal Relief is scrapped in budget
BOSSES thinking of closing a solvent business are being advised to act promptly in case a tax break is taken away. It has been suggested that Rishi Sunak could reduce Business Asset Disposal Relief (BADR) – formerly known as Entrepreneurs’ Relief – in the budget this month.
For the full story: https://www.bournemouthecho.co.uk/news/19648903.bosses-advised-act-case-business-asset-disposal-relief-scrapped-budget/
Dorset Business Focus magazine 30th September 2021: How can a company with an outstanding Bounce Back Loan be closed?
Repayments began in May 2021, and whilst there is no doubt that BBLs kept many companies afloat, sadly not all will survive, and that will mean liquidation for some. A question we are frequently being asked right now is how a company with an outstanding BBL can be closed.
For the full story: https://dorsetchamber.co.uk/how-can-a-company-with-an-outstanding-bounce-back-loan-be-closed/
Dorset Business Focus magazine 29th September 2021. Will the Chancellor scrap Business Asset Disposal Relief on 27th October 2021?
Back in March 2021, we advised those businesses owners who were considering closing their solvent companies to act quickly as there was a chance that the Chancellor would reduce the benefit to be had from the Relief, or perhaps scrap it completely. In the event, no changes were made.
However, there is another budget due on 27th October 2021, and, once again it is considered likely that BADR will be in the firing line, as the Chancellor is known to be looking at ways of funding the cost of the Covid-19 pandemic.
For the full story: https://dorsetchamber.co.uk/will-the-chancellor-scrap-business-asset-disposal-relief-on-27th-october-2021/
Dorset Business Focus magazine 8th September 2021. Ten Top Tips for Debt Recovery.
Late payments can severely disrupt a business’s operations, and can even lead to insolvency, meaning that an effective debt recovery policy is a must. We are grateful to debt recovery consultant Mike Hartley for these 10 tips that all companies should consider.
For the full story: https://dorsetchamber.co.uk/ten-top-tips-for-debt-recovery/
Dorset Business Focus magazine 22nd July 2021. What is a debt relief order and how does it work?
Following lengthy consultations, The Insolvency Service has announced that new limits will be introduced for Debt Relief Orders (DROs) from 29 June 2021, for individuals living in England and Wales who cannot pay their debts.
For the full story: https://dorsetchamber.co.uk/what-is-a-debt-relief-order-and-how-does-it-work/
Dorset Business Focus magazine 21st July 2021. #BeKind. How we go about helping businesses and people…
Our job as Insolvency Practitioners is, of course, underpinned by compliance and to the rules and regulations demanded by our profession.
However, we never lose sight of the fact that insolvency is about people and that these people need to be treated with compassion during what is a very difficult time
As insolvency practitioners, we understand that for every company, big or small, insolvency ultimately affects the people involved, from sleepless nights for the directors to employees worrying about their jobs.
For the full story: https://dorsetchamber.co.uk/bekind-how-we-go-about-helping-businesses-and-people/
Dorset Business Focus magazine 15th June 2021. Bounce Back Loans – 20% of borrowers are asking for more time to pay. Will Bounce Back Loan Repayments Tip Some Companies into Insolvency?
If a business becomes insolvent, having been unable to recover from the impact of Covid-19, and cannot repay its BBL, responsibility for repaying the loan lies with the company and not the directors or other shareholders. This is providing the directors comply with their statutory and fiduciary duties, and the loan has been used in accordance with its terms and conditions.
For the full story: https://dorsetchamber.co.uk/bounce-back-loans-20-of-borrowers-are-asking-for-more-time-to-pay-will-bounce-back-loan-repayments-tip-some-companies-into-insolvency/
Dorset Business Focus Magazine 19th May 2021. New retrospective powers to investigate directors of dissolved companies and combat Bounce Back Loan Fraud.
With significant levels of misuse and fraud being seen with BBLs, the Government has said that the Insolvency Service will be granted greater powers to investigate directors who have dissolved their companies in order to fraudulently avoid paying back Government backed loans.
For the full story: https://dorsetchamber.co.uk/new-retrospective-powers-to-investigate-directors-of-dissolved-companies-and-combat-bounce-back-loan-fraud/
Dorset Business Focus magazine 6th May 2021. BBLs: the time has come to repay them.
We ask as repayments become due – “Will directors of businesses that become insolvent and cannot repay BBLs automatically face personal liability and director disqualification investigations?”
For the full story: https://dorsetchamber.co.uk/bounce-back-loans-the-time-has-come-to-repay-them/
Dorset Business Focus magazine 19th April 2021. BBLs: the time has come to repay them. Uncovering the new Recovery Loan – A commercial look at the scheme.
On the 31st of March 2021, the BBLS, CBILS and CLBILS schemes closed and on the 6th of April the new Recovery Loan Scheme (RLS) launched. The new scheme which is, again, overseen by the British Business Bank is designed to support access to finance for UK businesses as they recover and grow following the pandemic.
For the full story: https://dorsetchamber.co.uk/uncovering-the-new-recovery-loan-a-commercial-look-at-the-scheme/
Dorset Business Focus magazine 13th April 2021: Mental Health and Insolvency.
Elaine Wilkins from our Bournemouth Office is now a Mental Health First Aider
People’s Mental Health and the affect upon it by the myriad problems caused by pandemic lockdowns has been heavily reported over the past 12 months or so. This applies as much to businesses as it does at home, and as insolvency practitioners, we have seen the stress and strain that business difficulties can cause company directors and their staff. Elaine Wilkins from our Bournemouth Office decided to do something about it and is now a trained Mental Health First Aider.
In this article, Elaine tells us a bit more about what a Mental Health First Aider is and how she can help.
For the full story: https://dorsetchamber.co.uk/mental-health-and-insolvency/
Bournemouth Echo 12th April 2021: Many jobs ‘won’t be viable’ when furlough ends
SOME businesses are using the furlough scheme to “kick the can down the road” and keep unviable jobs going, it has been claimed.
For the full article: https://www.bournemouthecho.co.uk/news/19223197.many-furloughed-jobs-will-lost-businesses-warn/
Dorset Business Focus magazine 6th April 2021: Is Furlough now just ‘Kicking the Can Down the Road’ and allowing Unviable Jobs to Survive Short Term?
The Furlough scheme has now been extended to the end of September 2021, with some tapering of the Government’s contribution beginning in July. There is no doubt that the scheme has helped the country avoid the huge rise in redundancies that many were predicting 12 months ago. But has it just enabled financially distressed businesses to keep unviable jobs going? And what will happen to such jobs when the scheme ends?
We are grateful to Gemma Murphy for her views, who suggests the reality for many businesses is that many jobs protected by Furlough are likely to be unviable.
For the full article: https://dorsetchamber.co.uk/is-furlough-now-just-kicking-the-can-down-the-road-and-allowing-unviable-jobs-to-survive-short-term/
Dorset Business Focus magazine 29th March 2021: 100 Easter Eggs Donated to YMCA Bournemouth.
Here at Antony Batty & Company, we always aim to live by our 3 key values of integrity, professionalism and good customer service. These values apply to our work as insolvency practitioners and business turnaround experts as well as to our wider work in the community.
Recently, our Bournemouth office was delighted to donate 100 Easter to the YMCA branch in Bournemouth, as part of our commitment to helping out in the community.
For the full story: https://dorsetchamber.co.uk/100-easter-eggs-donated-to-ymca-bournemouth/
Dorset Business Focus magazine 3rd March 2021: Redundancy Pay – Did you know the Government will pay if the Company you work for goes out of business?
The number of redundancies has spiked sharply due to Covid-19, exceeding those recorded during the credit crunch recession of 2009/10. Latest Office for National Statistics figures showed that there were 314,000 redundancies in Q3 2020 and 343,000 in Q4 (compared to 118,000 and 109,000 for the same quarters in 2019). Employees (and that includes directors) have certain rights when they are made redundant, including getting redundancy pay. Normally the employer pays this.
But what happens when redundancy happens because of the company going out of business? The answer is that the Insolvency Service, a Government agency, will pay.
For the full story: https://dorsetchamber.co.uk/redundancy-pay-did-you-know-the-government-will-pay-if-the-company-you-work-for-goes-out-of-business/
Bournemouth Echo 27th January 2021: Insolvency practitioners on threats to businesses in Covid crisis
The insolvency practice Antony Batty said there were four key factors putting extra pressure on businesses.
For the full article: https://www.bournemouthecho.co.uk/news/19040272.insolvency-practitioners-threats-businesses-covid-crisis/
Dorset Business Focus magazine 26th January 2021: Looking to close your Company?
Business Asset Disposal Relief might be available if you close your solvent company using a Members Voluntary Liquidation. But will the Chancellor abolish it in his 3rd March 2021 budget?
For the full article: https://dorsetchamber.co.uk/looking-to-close-your-company/
Dorset Business Focus magazine 13th January 2021: Pressure continues to build on UK Business, as if Covid and Brexit were not enough!
We highlight 4 key areas that are also causing increased pressure on businesses right now and suggest how insolvency practitioners can help: – Repayment of CBILs to begin soon, – Directors not fulfilling their duties when they are insolvent, – Late payment of invoices, – January tax return time.
For the full story: https://dorsetchamber.co.uk/pressure-continues-to-build-on-uk-business-as-if-covid-and-brexit-were-not-enough/
Dorset Business Focus magazine 12th January 2021: 4 Sins to avoid – Your responsibilities as a Director.
As we enter a 3rd national lockdown, it can only get harder and harder for many financially distressed companies to survive, despite government support. With the end of January tax bill likely to bring further financial hardship to companies struggling to survive, and with the first CBIL repayments, for example, only 3 months or so away, many businesses will be teetering on the edge of insolvency. That is when directors need to be especially vigilant. The fiduciary duties of directors at insolvency to their creditors and shareholders are unchanged by Covid-19. If insolvent, company directors must tread very carefully to avoid personal liability to creditors and the possibility of misfeasance claims, director disqualification, or even prison.
For the full story: https://dorsetchamber.co.uk/4-sins-to-avoid-your-responsibilities-as-a-director/
Bournemouth Echo 7th January 2021: ‘Covid CVAs’ could help small businesses with debts?
AN INSOLVENCY expert has welcomed moves to help small businesses tackle their debts through the same procedure used by a host of famous names.
Company voluntary arrangements (CVAs) have recently been employed by high street names such as Moss Bros, New Look and Ann Summers in a bid to avoid administration.
For the full story: https://www.bournemouthecho.co.uk/news/18991513.covid-cvas-help-small-businesses-debts/