Thames Valley Office E-Newsletters
We produce a regular e-newsletter which we send out to our subscribers. It usually features two or three stories relating to our core business as insolvency practitioners and business restructuring and turnaround experts, including news about us and the world of insolvency in general, case studies and, from time to time, testimonials from satisfied clients. Click on any one, below, to view.
15th November 2023: Directors be Vigilant! Talk to your Accountant to understand a Director’s Loan Account and your potential Liabilities?
- In our experience, a Director’s Loan Account (DLA), and how and when one can be used, is a complex area and often not fully understood by directors, especially in the SME sector. If your company is liquidated, overdrawn Directors’ Loan Accounts and Illegal Dividends can lead to Liquidators’ Claims and even Director Disqualification.
16th October 2023: What are the options for closing IR35 contractor limited companies How can Insolvency Practitioners help?
- IR35, also known as the Intermediaries Legislation, is a complex set of HMRC rules that are used to determine whether a contractor should be treated as an employee or self-employed for tax purposes. IR35 came into force in April 2000, and has had a number of changes since, with the most recent significant reform coming in April 2021. This reform has had an adverse impact on many contractor companies, with some directors looking to find the most efficient way to close their company down.
29th August 2023: Directors must be vigilant to avoid Wrongful Trading
4th April 2023: Can Directors Loan Accounts be Reclassified as remuneration in Administration or Liquidation?
- Insolvency Practitioners are duty bound to scrutinise Directors’ Loan Accounts, which, if overdrawn, can lead to insolvency claims against the directors as well as director disqualification investigations.
- In this article, we look at a recent judgement from a High Court case, which investigated the issue of whether DLAs could be reclassified as remuneration. The case highlighted the risks to directors in trying to do so.
7th March 2023: Why it is important for directors to document their actions if concerned they are insolvent
- Directors must comply with their duties as stated in the Companies Act 2006. Failure to do so can have serious consequences.
- The Duties of Directors when a Company is in Financial Difficulties. Some Do’s and Don’ts.
7th February 2023: Reduced energy bill support could affect 25% of small businesses.
- What can affected businesses do if Insolvency looms as a result? A Members’ Voluntary Liquidation (MVL) is one option, especially as Business Asset Disposal Relief (BADR) is still available to withdraw monies tax efficiently.
10th January 2023: Directors be Vigilant! The additional tax charge for an un-repaid Director’s Loan Account is 33.75%
- The first looks at Directors’ Loan Accounts, and the little known (amongst directors) fact that the additional tax charge for an un-repaid Director’s Loan Account is 33.75%.
- The second looks at a case study where a Company Voluntary Arrangement restored solvency to a London Stock Exchange listed company that was in Administration – a really specialist piece of work.
8th December 2022: What is a Restructuring Plan and when can one be used?
- The Restructuring Plan was introduced in 2020 via the Corporate Insolvency & Governance Act as part of a range of government measures designed to assist struggling businesses.
- Fine and prison sentence for another director who abused the Bounce Back Loan Scheme.
3rd November 2022: What do the current figures look like in the Insolvency industry?
- 16% more insolvencies than a year ago. Plus 18% of small businesses have considered closure this year.
- The Improper use of Customers’ Deposits. This is a ‘red flag’ offence at Insolvency. Our Insolvency Practitioners explain why.
5th October 2022: How can Insolvency Practitioners help Businesses in Financial Distress?
- Many thousands of businesses are feeling the financial strain. The quicker we are asked for advice, the more we can do to help.
- The current inflationary situation and economic uncertainty is causing huge problems for many businesses. What can affected businesses do?
6th September 2022: HMRC Winding Up Petitions on the increase
- More severe enforcement by HMRC as the average amount due to HMRC in UK insolvencies doubles.
- Directors need to be Vigilant! Understanding a Directors Loan Account and your Liabilities. If your company is liquidated it can lead to Liquidators’ Claims and even Director Disqualification.
11th August 2022: First Director goes to prison for Bounce Back Loan Fraud
- On 24th June 2022, Abdulrazag Zagroba, was sentenced to 24 months in prison for Bounce Back Loan (BBL) fraud, the first successful criminal prosecution for this crime by the Insolvency Service. He was also disqualified as a director for 7 years.
One of our Insolvency Practitioners, Antony Batty, commented:
“This represents a milestone and has been a long time in coming. Indicators are there will be many more. It also shows the powers that the Insolvency Service has at its disposal.
12th July 2022: The Misuse of Covid Loans can lead to Freezing orders, Winding up Petitions, Director Disqualification and Criminal Proceedings
- Latest Government figures show that the number of registered company insolvencies in May 2022 was 1,817:
- 79% higher than in the same month in the previous year (1,014 in May 2021), and
- 34% higher than the number registered three years previously (pre-pandemic; 1,352 in May 2019).
Businesses will continue to face significant headwinds as inflation and costs continue to rise and economic volatility persists.
What does this all mean for the repayment of ‘Covid Loans’?
21st June 2022: Paying Dividends – The Consequences of Paying Illegal Dividends.
- As the full financial impact of the Covid-19 Pandemic is becoming clear, we have seen that it has led to drastically increasing numbers of corporate failure and, as part of the process of investigating both Voluntary and Compulsory Liquidations, dividend payments will be scrutinised for legality by Insolvency Practitioners. Some directors may face a Misfeasance Claim as a result and will be forced to repay dividends.
14th February 2022: Think before you – or a client – signs a Personal Guarantee
- Personal Guarantees for Commercial Leases (or any type of loan) can lead to serious consequences for the Guarantor. What are the issues and how can Insolvency Practitioners help?
7th January 2022: Directors of Dissolved Companies can now be investigated by the Insolvency Service
- Following the granting of Royal Assent to the Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill on 15th December 2021, on 15th February 2022 specific provisions come into force which will allow the Insolvency Service to investigate the conduct of a Director of a Company that has been dissolved without first being subject to insolvency proceedings.
7th December 2021: Insolvency, Liquidation and Redundancy Claims
- Insolvency, Liquidation and Redundancy Claims. A testimonial from a relieved client whom we went the extra mile for with his redundancy claim: “Sunney Sagoo from Antony Batty took me through the process of application for my redundancy claim, and after firstly receiving rejection he argued the case on my behalf which resulted in acceptance of both my notice pay and redundancy pay.”
4th November 2021: Personal Guarantees, Insolvency and Personal LiabilityLoan?
- Personal Guarantees, Insolvency and Personal Liability. 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.
- The Key Autumn 2021 Budget Announcements for Businesses. Business Asset Disposal Relief was untouched and Business Rates were discounted for the sectors hardest hit by Covid-19.
7th October 2021: Worried that you or a Client cannot pay back a Bounce Back Loan?
- Bounce Back Loan repayments started in May 2021. How can a Company with an outstanding Bounce Back Loan be closed?. The correct procedure to use to close a company with an outstanding Bounce Back Loan is a Creditors’ Voluntary Liquidation.
- Looking to close a Solvent Company with an MVL?. Should you, or a Client, act before the Autumn Budget on 27th October 2021?
8th September 2021: 10 tips to help with debt recovery
- 10 tips to help with debt recovery. Late payments can severely disrupt a business’s operations, and can even lead to insolvency. An effective debt recovery policy is a must.
- Walking to raise funds for MIND. Our Teams are walking virtually from Lands End to John O’Groats to raise awareness for Mental Health.
4th August 2021: The Key Signs of Financial Distress
8th July 2021: Licensed Insolvency Practitioner Matt Waghorn takes up his position as Partner at K & W Recovery
- As of 1st of July 2021 we are delighted to announce that Licensed Insolvency Practitioner Matt Waghorn has arrived to take up his position as a partner at the firm, alongside Lawrence King.
- Overdrawn Directors Loan Accounts and Illegal Dividends. If a company is liquidated it can lead to Liquidators’ Claims and even Director Disqualification.
- Restrictions on statutory demands and winding up petitions now extended to the end of September 2021.
- As of 1st of June 2021 we are delighted to announce the creation of K&W Recovery Limited (KWR), trading as Antony Batty & Co. Thames Valley. The company is headed up by Licensed Insolvency Practitioners Lawrence King and Matt Waghorn (from 1st July) and specialises in insolvency, recovery and turnaround.
- Insolvency Service gets new retrospective powers to investigate directors of dissolved companies and combat Bounce Back Loan Fraud.