Simple Liquidation blog

It’s official; the UK is the most attractive country for young people across the G20, according to the latest survey from Ipsos, the research specialists. The British Council asked Ipsos to conduct the research that surveyed 20,616 people across the G20 countries, aged 18-24 years old, in September and October 2021. The results showed that not only did the UK ranking in G20 nations continue to remain strong, but that overall, the country’s attractiveness has increased. But why is the UK so attractive to young people? For the fourth time since 2016, the British Council wanted to get an insight into what young people thought about the UK, why it is so attractive to them and the level of trustworthiness of the G20 countries. Following the survey of over 20,000 people across 19 of the G20 countries, the UK pipped Canada to the top spot. The highest UK ranking in G20 nations was led predominantly by ‘trust in institutions’; that being, our education system is considered the best of the G2...

With rising inflation and the cost of living crisis in the UK, there has been much talk in recent months of an impending recession in the UK. Some experts believe that the country is already in a recession, albeit mildly, while others are predicting 2023 is the year a recession will hit the UK. Others are saying that although it may look like the UK is in a recession, there are certain industries bucking the trend. It’s hard to decipher whether a recession is looming, particularly when the economy records a growth of 0.5% in May this year. Whilst this may be a small growth, it is an upward trend that many experts hadn’t predicted. On the reverse side of the coin, GDP in the UK dropped by 0.3% in April as the cost of living crisis started to really bite. So, is there going to be a recession in the UK ?

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...