Business and Company Debt Solutions
Whatever your business and whatever the financial challenges, Beacon insolvency Practitioners Basingstoke will help.
Many businesses fail when they run out of cash. If you suspect you will not be able to pay your debts as they fall due, now is the time to seek expert advice.
Beacon help alleviate stress, and as pressure mounts, we're here to discuss the options available to your business.
Is your business struggling financially?
Liquidation need not be the only outcome or option available. Your business may benefit from a number of different rescue or financial turnaround options. Beacon Insolvency Practitioners are happy to discuss these with you.
If your company is in difficulty or facing an impending problem, please feel free to contact us and we will work together to ensure the best outcome for all concerned.
Making that first call is often the hardest step. But it is also the most crucial. This is why we offer a free no-obligation consultation. Beacon Insolvency Practitioners Basingstoke are here to help, not hassle you.
A range of options are available, to get your company back on financial track, rescue the business or assist in the closure of the business and company, including:
- How you can resolve your problems without any further professional involvement;
- Which of the options below are practical for your situation;
- How we would use these options to tackle your problems;
- The consequences for you and your business
If you have a viable business that is failing, or likely to fail, because of the burden of debt, an onerous lease or bad debtor, an Administrator can trade the company and often rescue a business, thus saving employees' jobs and preserving goodwill.
Often a deal can be agreed in advance to ensure the inherent added value of the business is not lost, trading relationships not interrupted and service to customers maintained.
Appointment can occur in a number of ways, by a number of people, depending on the circumstances and what is best for everyone involved.
Company Voluntary Arrangement (CVA)
A less well-known procedure, Company Voluntary Arrangement allows Directors to retain control of a business, whilst allowing restructuring or a change of approach, including redundancies or the exit from an onerous lease, whilst maintaining the Company as a trading entity.
Comprising a negotiated settlement between the Company and Creditors, a CVA can allow historic debt to be settled in full, or in part, from future profits. It makes ideal for both start-up or established organisations who need to escape from the burden of the past, to excel in the future.
Creditors' Voluntary Liquidation (CVL)
If you fail to pay a debt when it is due, a creditor can initiate a petition to the court for a winding-up order against the company - Compulsory Liquidation.
Members' Voluntary Liquidation (MVL)
If you are considering retirement, restructuring of a solvent business or an agreed exit from a Company, an MVL is a tax-efficient, safe and simple procedure to protect your position and extract assets.
This can be completed in a way to minimise your tax liabilities, usually for a fixed fee agreed in advance. For further information, get in touch for a FREE initial consultation.
Up until 1st March 2012, if directors wished to wind up a solvent business, a little-known tax concession called the Extra-Statutory Concession (ESC) C16, allowed shareholders to realise assets informally, without the need to go through formal liquidation procedures. Funds distributed to shareholders were subject to Capital Gains Tax (CGT) rather than Income Tax –resulting in substantial savings.
On 1st March 2012, new formal rules were introduced. The previous informal route is now only available to small companies with distributions under £25,000. Any informal distribution involving more than £25,000 is now deemed an income dividend to shareholders.
While many shareholders did prefer the comfort of a formal liquidation (known as a Members Voluntary Liquidation or MVL), since it avoided any subsequent comeback, previously it was not necessary to incur the costs of an MVL in order to obtain the CGT relief. However the Government, in enacting “Extra-Statutory Concession C16” clearly believed the informal system was being abused. For all that, one can still get distributions from solvent companies over £25,000 subject to Capital Gains Tax. To do so now requires a formal MVL.
Beacon have developed a system that enables us to move as quickly as is required to suit your needs.The process:
- We complete the whole process via email, or in whatever way suits your requirements. The only ‘tricky’ document as far as the client is concerned is the ‘declaration of solvency’; as this must be sworn in front of a solicitor or commissioner for oaths (there is a charge for this, by the solicitor, usually between £5-10).
- We then advertise the Liquidation of the company, the appointment of the Liquidator and for any outstanding creditors to submit claims. We then obtain post Liquidation tax clearance from HMRC, settle any outstanding liabilities of the Company.
- Once liquidation clearance from HMRC has been received, we convene and advertise a final meeting to be held 8 weeks later. This will conclude the Liquidation, and the Company will be struck off 3 months later at Companies House. If the company was VAT registered, we can generally reclaim the VAT and whilst initially payable, when the vat refund is received we would pay the refund across as a distribution to shareholders.