Directors’ hub
Financial and operational problems require specialist skills and experience. Planning the most sensible way forward is key for directors under pressure. Directors have legal responsibilities and may be personally liable if things go wrong. If you answer ‘yes’ to any of the questions below, we can help. Contact our experienced team for urgent advice.
We are here to help
Call Ian Robert, Head of Insolvency, for advice on 020 7566 4020. Alternatively, please fill in your details below to ask a question or arrange a call back.
Guidance for directors
Most Bounce Back Loans are now becoming repayable, meaning the company must pay them back, along with its other creditors. If you’re struggling, we can help with negotiations with your bank. A Bounce Back Loan and/or CBIL must be taken into account in determining whether your company is solvent.
HMRC, landlords, banks and main suppliers are all now pushing for repayment. We can help you to identify a solution if you are feeling the pressure. We have the expertise to help you get back on track and avoid some of the common pitfalls.
If a creditor has or is threatening to petition to wind up your company, you need urgent advice. Many directors don’t realise that once a petition to wind up is advertised, their bank account will be frozen. Following petition, you should not make payments to creditors without the consent of the Court. We can act quickly to help keep your business going while a solution is found.
HMRC are stepping up their recovery processes and are particularly keen on chasing down outstanding furlough monies or where furlough was incorrectly claimed. This can lead to personal liability so urgent advice is needed.
In certain circumstances, directors can inherit personal liability if the company is insolvent. These situations include:
- trading while insolvent;
- preferring some creditors and not others;
- selling assets at below market value; or
- not acting in the interests of creditors.
We can steer you through the pitfalls, minimising the risk of personal liability. Read our guide to directors’ duties.
A solvent liquidation (MVL) is often the best way of getting the surplus monies out of your company as a distribution of capital (rather than an income-based dividend). An MVL attracts lower tax rates and you may be eligible for Business Asset Disposal Relief which has even lower rates of tax.
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