Simple Liquidation blog

In April 2020, the government launched their Bounce Back Loan Scheme (BBLS) to help small and medium-sized businesses through the coronavirus pandemic. It allowed companies to borrow up to £50,000, depending on turnover, at a very low-interest rate and without having to pay a penny towards paying back the loan for 12 months. The government collaborated with leading banks and financial firms who offered and managed the BBLS initiative, including Natwest, TSB and the HSBC Bounce Back Loan. In May 2021, some of the first receivers started to pay back their loans but as it became clear that Covid-19 was still with us and with many restrictions still in place, recovery for businesses was extremely slow. So the government announced their Pay As You Grow (PAYG) scheme, where companies were able to get support in paying back their loans, including extending the loan period. Check HSBC Bounce Back Loan Repayment Extension 

The Chancellor, Rishi Sunak, announced a series of financial measures in 2020 to help businesses through the coronavirus pandemic. One of those initiatives was the Bounce Back Loan which was launched in April 2020. It allowed small and medium-sized businesses to borrow up to £50,000, depending on turnover, at a very low-interest rate. As well as being guaranteed by the Government, businesses and organisations didn’t have to start paying back the loan for 12 months. From that point, payments are made over a six-year or extended to a 10-year period if they were still struggling financially. However, calculating how much your monthly repayments will be has caused some confusion among business owners/directors. Whilst no arrangement fees are added to the loan figure, and the interest rate charged is low for the duration of the loan, many hadn’t included the Business Interruption Payment (BIP) figure. This is the sum of money paid to the lending parties by the Government to cover the 12 mon...

Struggling with company debt can be challenging; many directors find that the turning point into official insolvency is being unable to pay HMRC their tax obligations. In these situations, the company enters an insolvency procedure. Which procedure depends on whether HMRC applies via the courts for compulsory liquidation or the company’s directors opt for a Creditors’ Voluntary Liquidation. However, closing a company with HMRC debts must be done according to the current insolvency laws because any problems and directors could be held personally responsible for the debts. On top of this, HMRC has the power to pursue its debt long after the company has been closed. So, how do you close a company with HMRC debts without attracting other problems later on? What are HMRC debts? Currently, HMRC is owed a staggering total £33 million in tax debt at the close of March 2022. For most companies, their tax debt is made of arrears for VAT, National Insurance (NI) payments or income tax (PAYE). Pa...

What was formerly known as Entrepreneurs Relief is now known as Business Asset Disposal Relief (BADR). It is a tax relief benefit that can reduce the Capital Gains Tax (CGT) that is paid on the sale of the assets of a solvent company that is either being liquidated or sold. When a solvent company is liquidated, it is through a Member’s Voluntary Liquidation process in accordance with the laws dictated by the Insolvency Act 1986. When the assets of the solvent liquidated company are sold, CGT is applied but directors of the company that qualifies for BADR are able to pay half the amount of tax on the capital gains rather than the standard amount. So, how does Business Asset Disposal Relief work ?

Business Asset Disposal Relief reduces the amount of Capital Gains Tax ( CGT ) on a disposal of qualifying business assets on or after 6 April 2008, as long as you have met the qualifying conditions throughout a 2 year qualifying period either up to the date of disposal or the date the business ceased. Business Asset Disposal Relief was known as Entrepreneurs’ Relief before 6 April 2020. In order to take advantage of this tax relief, the company needs to go into a solvent liquidation process [Members’ Voluntary Liquidation-MVL] and the Liquidator will make capital distributions to shareholders, thereby enabling them to make the Business Asset Disposal Relief claim in their own Tax Returns. Who can claim relief Business Asset Disposal Relief is available to individuals and some trustees of settlements, but it’s not available to companies or in relation to a trust where the entire trust is a discretionary settlement. Personal Representatives of deceased persons can only claim if t...

For any company or personal insolvency procedure or for the closing of a solvent business in the United Kingdom, it must be handled by a licensed insolvency practitioner (IP). But finding one that is able to handle your situation and that you can work with is another matter. However, there are several sources you can use to help you find a licensed insolvency practitioner in your area and specialises in your type of business or personal situation. What is a licensed insolvency practitioner? A licensed insolvency practitioner is someone that is qualified, licensed and authorised to act on behalf of an individual, partnership or company that is either insolvent. In most cases, insolvency practitioners work in a law firm, an accountant or a specialist insolvency practice. However, they are also required when a solvent company is being closed down, known as winding up.. To practice as a licensed insolvency practitioner, they are required to: READ MORE

British Steel was created in 1967 as a nationalised company and was established as part of the Iron and Steel Act 1967, largely in response to the huge demand for steel following the Industrial Revolution. The company was later privatised in the 1980s and has since undergone major changes over the years, particularly in the 1990s when the demand for steel dropped. By 1999, the company merged with Koninklijke Hoogovens, forming Corus and in 2007, it was bought out by Tata Steel. By 2016, Greybull Capital purchased Tata Steel’s European business, including British Steel, and went on to buy FN Steel. However, just three years later in May 2019, it was announced that British Steel had been placed into compulsory liquidation following failed talks for emergency funding from the UK government. READ MORE