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Administration

What Is Administration?

Administration is there to protect a company whilst it achieves its aim, whilst placed in administration the company will be under control of an insolvency practitioner. The practitioner will be given the title of ‘Administrator’ and will protect the company from creditors. This will prevent actions against the company without permission from the court or administrator.

How Can I Get An Administrator?

There are many ways in which an administrator can be appointed. It could be from the company directors themselves, the courts, or an application from the company shareholders or creditors. An administrator can also be appointed by a company which has a qualified fixed or floating charge.

Why Do I Need Tax Problems?
At Tax Problems, we will advise company directors for free whether administration is appropriate. We will listen to you and any concerns you may have. We will answer any questions and if you require us to, we will recommend a few suitable insolvency practitioners.

Many companies have come to us wanting to achieve one of three objectives and this is where we could help you.

  • To rescue their company
  • To achieve an agreement with creditors
  • Released assets to secure a preferential creditor

What Do Administrators Do?
He/she will be appointed as the administrator and will decide if a company should continue to trade. The administrator will also take control of the company and all its assets. The administrator will have 8 weeks to present a proposal to the creditors of why and how the administration can be achieved, and the creditors will have up to 10 weeks to decide on this proposed action.

Depending on the progress of the administration the outcomes can be as follows:

  • The company directors and management may take back full control of the business
  • If no funds are owed to unsecured creditors the company may request to be dissolved
  • A voluntary arrangement may be agreed
  • The company may proceed into liquidation

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Members Voluntary Liquidation

What Is Members Voluntary Liquidation?

As a company owner with or without shareholders, you may decide to wind up the company, providing the company can pay creditors in full.

The majority of the stakeholders in the company would have to agree to the following procedure taking place. Once this decision is made a signed declaration must be produced by the directors stating that they are satisfied all of the company debts can be paid in full within a 12-month period.

The next step would be to appoint an insolvency practitioner, who would act as the liquidator to the company. Their responsibilities will include:

  • Agreeing creditors’ claims
  • Making distributions to creditors
  • Returning any surplus asset value to the shareholders
  • Releasing company assets

Why Do I Need Tax Problems?
At Tax Problems we will advise company directors for free whether Members Voluntary Liquidation is appropriate. We will listen to you and any concerns you may have. We will answer any questions and if you require us to, we will recommend a few suitable insolvency practitioners.

Company Voluntary Arrangement

What Is A Company Voluntary Arrangement?

A CVA known as a Company voluntary arrangement, could be the solution for a company suffering from a short-term cash flow problem. It enables an insolvent practitioner to meet an agreement with its creditors to stop or delay any compromising actions against the company.

In most cases creditors will agree to a CVA, especially if the company will return to a better financial state particularly if the only option is the alternative being company liquidation.

How Can I Arrange a CVA?
A CVA will need the assistance of an insolvency practitioner, they will act as a nominee during a CVA process. Their job will be to prepare and invite creditors to consider a proposal. It is the creditors that can renegotiate, approve or reject the proposal.

Providing the creditors are happy with the appointed insolvency practitioner, the insolvency company will instigate and implement the agreed CVA. The nominee will also receive and distribute payments to creditors as well as being responsible for implementing the agreed terms of the proposal.

Why Do I Need Tax Problems?
The control of the company will remain that of the existing management and directors. So, it is our job at Tax Problems to listen to you and provide free support to whether a CVA is the best or only option to your company. Before appointing an insolvency practitioner, consult with us first to find out all of your options. This is a completely free service, should you decide a CVA is for your company, upon request we can supply details of best suited insolvency practitioners.

Compulsory Liquidation

What Is Compulsory Liquidation?

Compulsory liquidation is designed to wind up a business to pay creditors that are owed. This compulsory liquidation will be instructed by a court order. If the debt is more than £750 the creditor can present a winding up petition to the court to reclaim the monies owed. In most cases a compulsory liquidation process is instigated by the creditor, but it can be instigated by an administrator or the company directors themselves. In some cases, a compulsory liquidation process has been presented by the FCA, financial conduct authority. Once the winding up petition has been agreed by the courts, the liquidation process will begin. In most cases an insolvency practitioner will be appointed to support the creditor/creditors and the process of liquidation. The liquidator will release assets and review creditors’ claims.

Why Do I Need Tax Problems?
Tax Problems will listen to you and provide free support regarding compulsory liquidation. Before appointing an insolvency practitioner consult with us first to find out all of your options. This is a completely free service. If you need help appointing a suitable insolvency practitioner we can provide a list of professionals.

Business Loan

What Do I Need A Business Loan?

Business loans can be taken out for many reasons. One reason that some businesses don’t think about is using a business loan for financial arrears. The busiest times that we have seen is January and April when businesses are running low on finance to pay the HMRC tax bills. You know – Quarterly VAT, corporation tax and PAYE. This secret is having a plan in place to settle tax bills. We have seen an increase in businesses winding up and liquidations due to businesses not having a plan in place.

Funding Plan
Many businesses up and down the country wait until reminder letters are sent from the HMRC, but this is not best practice as we have found that one main reason lenders may refuse to lend, is because of outstanding tax bills. That is why making sure that you have enough reserves to cover these bills when they come through is critical. There are lots of ways to achieve those reserves; Invoice finance, business loans and refinancing assets. At tax problems we specialise in business loans.

  • Unsecured Business loans up to £500,000 over 5 years
  • Secured Business Loans up to £1,000,000 over 10 years
  • Regulated Business Loans up to £25,000 over 3 years

We consider all business applications on a case-by-case basis. Enabling us to overcome difficult credit profiles as well as providing the best rates to established businesses.

Click below to discover further advice on business loans.

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