HELPING UK BUSINESSES IMPACTED BY CORONAVIRUS COVID-19

ADVISING DIRECTORS UNDER STRESS

STOP HMRC & Creditor Pressure

HMRC Tax Issues

FREE SAFE & SECURE Virtual Meeting for Company Directors

Director Redundancy

We Work Alongside Your Accountant

Licensed Insolvency Practitioners

Free Initial Virtual Meeting Advice
With UK licensed Insolvency Practitioners.

As well-established UK Licensed Insolvency Practitioners, businesses are therefore preparing to come out of the lockdown on the 21st June 2021. Many businesses though have been affected by the Covid-19 pandemic, it is therefore important that we are still able to deal with clients face-to-face We are assisting companies with Liquidation and Bounce Back Loans. However, we have therefore implemented systems that allow us to have virtual meetings using computers, tablets & mobile phones, so that directors can then see who they are dealing with. To book a virtual meeting, click on the link below.

Insolvency Advice UK – Business Insolvency Specialists

As UK Licensed Insolvency Practitioners (Please read’duties of an Insolvency Practitioner‘) the practice offers Directors insolvency solutions, offered to directors of limited companies, partners of partnerships, sole traders and individuals who are in difficulty throughout the United Kingdom. HBG Advisory offers honest, straight-talking insolvency advice, which then gives directors solutions and comfort moving forward

Insolvency Test

Company insolvency and how it works in the UK?
Upon deciding as directors, your company therefore requires assistance as your company appears insolvent. Then directors need to therefore check the following:-

Balance sheet test

Are your company’s liabilities greater than its assets in value?
If so, then the business remains therefore insolvent.

Cash flow test Can I then liquidate with an unpaid Bounce Back Loan?
Can your business pay its debts as and when they fall due?.
If not, then the company is therefore judged to be insolvent.

Legal action test

If your business is then subject to legal action that, if therefore lost, will then mean your business is therefore unable to pay, then again, the business is then insolvent.

Once then agreed to appoint, the control of the company’s assets is therefore then controlled by the licensed insolvency practitioner appointed. The IP then realises the assets and distributes the money raised in a strict priority to the creditors, with shareholders paid therefore then paid last.

Individuals or any association with fixed charge security registered to protect their interest over the company’s assets then remain paid first, subject to changes with the ruling December 1st, 2020 with HMRC ranking.

Then preferential creditors are therefore paid. This involves payments to previous employees covering their outstanding wages and holiday pay if owed at the time of the IP appointment.

Company creditors who have a floating charge registered are then next to accept funds, pursued later by unsecured creditors.
Should funds be therefore available after the initial distribution, the practitioner will then, therefore, pay the balance to the company’s shareholders?

For further information, please then read:’What is business insolvency in the UK?  And what is insolvency for further clarity and peace of mind.

ACCA (Home Page)
Insolvency Practitioners Association
TMA (Licensed Insolvency Pratitioners)
ACCA (Licensed Insolvency Practitioners)