Business Debt

What are the insolvency tests for a limited company?

If your company is experiencing financial difficulties, it is important to determine the extent of the problems being faced so that a plan can be put in place to turn the situation around. One of your...

Business Debt

What are my options for closing my company?

If you’ve decided it’s time to close your limited company, there are several different routes you can take. The most appropriate closure method will depend on whether your business is solvent (can...

Business Debt

Can’t pay my company’s tax bill - what are my options?

Most companies put money aside to pay their PAYE, VAT and Corporation Tax bill. But what happens when you’re forced to spend that money on something else, or your bill is unexpectedly large and you...

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Business Debt

Winding-up Petition

A Winding-up Petition is a legal notice presented to the court by a creditor with a view to forcing a company into liquidation. If a winding-up order is granted by the court, compulsory liquidation ca...

Business Debt

Is my company insolvent?

As a company director, you have to keep a close eye on your business’s finances, particularly when it’s struggling. As soon as your company becomes insolvent, your duties as a director will change...

Business Debt

HMRC debts for sole traders and businesses

If you can show that your current financial state is only temporary, and you’re not deliberately trying to avoid payment, you may be able to negotiate for more time to pay. HMRC understand that sour...

Man looking at a Statutory Demand request

Business Debt

What is a Statutory Demand?

A Statutory Demand is a formal, written request for a debt to be paid. Statutory demands can be sent to an individual or a company by someone you owe money to (known as a creditor).

Business Debt

Can a Winding Up Petition be stopped in Scotland?

The winding up procedure, also known as Compulsory Liquidation, is the process of forcing a company to close when it cannot pay its debts. A creditor, such as a supplier or HMRC, can take this action...

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Business Debt

What happens to personal guarantees in insolvency?

If your business is insolvent, you might be worried about the potential impact it can have on your own finances, particularly if you have signed a personal guarantee.

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Business Debt

What is an HMRC Time to Pay arrangement?

If you’re struggling with company tax debts, you can make a Time to Pay arrangement with HMRC to repay what you owe over a typical period of six months.

Business Debt

What action can creditors take against my company?

If you are struggling to pay company debts and face increasing pressure and threats of legal action from your creditors, it is a sign that your business is insolvent.

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Business Debt

Overdrawn Directors’ Loan Accounts

A director’s loan account (DLA) can become overdrawn if too much money is taken from the company that isn’t salary or a dividend. Directors’ Loan Accounts are useful when operated with caution,...