Stats, Facts and Figures Released

  On 17th May 2022 the Insolvency Service released their monthly Insolvency Statistics for April 2022.   Corporate   The number of company insolvencies in April 2022 was 1,991, which is more than double the number registered in April 2021 of 925. This is also 39% higher than the figures for pre pandemic April 2019…

Preferences in Insolvency

Preferences in Insolvency   When a company goes into an insolvency process of administration or liquidation, the directors of the company need to be careful to not pay one particular creditor ahead of another creditor, as this could result in them giving a preference and falling foul of the Insolvency Act 1986.   It can…

The Importance of a Balance Sheet

The Balance Sheet Test   When a director is considering if their company is insolvent one of the tests of insolvency is the Balance Sheet Test. The balance sheet will usually be prepared up to the last day of a company’s financial year, providing an overview of what the company owns and how it has paid…

Illegal Dividends to Directors, when Insolvency Occurs

Illegal Dividends to Directors, when Insolvency Occurs In this present time of uncertainty, with most companies having severe cash flow problems, it is worth pointing out that when a company goes into liquidation, HMRC are looking at recuperating monies to creditors by looking at illegal dividends taken by directors in the period prior to insolvency.…

Solvent Liquidations and paying less tax

Solvent Liquidations and paying less tax We receive quite a few enquiries about how you can close down a limited company that is no longer needed and pay less tax when the shareholders withdrawn the monies from the company. This is a solvent liquidation to close the company down and is known as a Members…

Directors’ duties in insolvency – wrongful trading

Directors’ duties in insolvency – wrongful trading In these uncertain times, Directors of limited companies need to take extra care, especially when the company is forced into closing down and liquidation occurs.   When a company is insolvent, the Directors’ first duty is to the creditors, rather than to themselves or the shareholders. If the…

DCA’s Festive Fundraiser!

DCA’S FESTIVE FUNDRAISER! DCA Business Recovery is holding this years Christmas event on 14th December, 4.00 – 7.00 pm, at our office at 18 Clarence Road, Southend on Sea. We are pleased to be raising money for Havens Hospices as part of their ’12 Days Of Christmas’ campaign, so we promise that in return for…

Interest Rate Increase

The news we all knew was coming, but most feared, was confirmed yesterday when for the first time in more than 10 years, the Bank of England raised interest rates. This means that the official bank rate has been lifted from 0.25% to 0.5%, which is the first increase since July 2007. Adding to the…