The Insolvency Service releases monthly company and individual insolvency statistics for England and Wales, and monthly company statistics for Scotland. The latest monthly release was published on 14 August 2020. Summary for July 2020 England and Wales Whilst overall numbers of company and individual insolvencies remained low in July 2020, when compared with the same […]
The Insolvency Service has released company insolvency statistics for Q4 September to December 2019 for England and Wales, showing an increase in underlying company insolvencies for the year to their highest levels since 2013. Despite the overall increase in 2019 over previous years, the last quarter witnessed a slight decrease in underlying company insolvencies – […]
Except in certain circumstances, Section 216 of the Insolvency Act 1986 prohibits the re-use of a company name where a company has entered insolvent liquidation. The section does not apply in any other insolvency process unless insolvent liquidation follows administration or a Company Voluntary Arrangement. Section 216 states that: Any person that has been a […]
On 31 October 2018 we posted a blog on HMRC regaining preferential creditor status and the potential effect on banks and other lenders. HMRC recently commenced a consultation period which is due to expire on 27 May 2019. The consultation is being undertaken with a view to deciding how the new rules should be implemented […]
One of the key points Philip Hammond delivered in his third Budget was the return of HMRC as a preferred creditor in insolvency cases. In 2002 the Enterprise Act removed HMRCs right as a preferential creditor and ranked it alongside unsecured creditors. At present, taxes paid by employees and customers are not always provided to […]
HMRC are running a test case to challenge one of the traditional approaches of dealing with an overdrawn Director’s Loan Account (‘DLA’) when entering a Members’ Voluntary Liquidation (‘MVL’). At the end of a company’s useful life, if it is solvent, it is normal practice to place it into MVL to enhance the tax position […]
With the end of the tax year only one month away, now may be the time to consider putting a company through a solvent restructure otherwise known as a Members’ Voluntary Liquidation (MVL). Where the company has assets in excess of £25,000, by using the MVL process, shareholders can gain advantageous rates of tax on […]
Well the quick answer is ‘it depends’… If you want to re-use a company name after it has become insolvent, care must be taken to ensure you keep within the rules, or you could face criminal proceedings and become personally liable for the successor company’s liabilities. When is a name prohibited? Section 216 of […]
Following the collapse of Carillion in what could be one of the largest insolvencies our profession has seen, the directors of the company have been ordered by the Work and Pensions and BEIS committees to give evidence as to why the company went into liquidation with liabilities estimated to be in excess of £1.5 billion. […]
Employee claims in insolvency When the decision is made to place a company into an insolvency procedure and some or all of the employees are made redundant, this can leave employees in an extremely precarious situation. As a consequence of the employer being insolvent, in many cases employees are faced with not only losing their […]