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Debt Advice Centre

Welcome to Bridgewood's new Debt Advice Centre. Over the coming months we will be adding posts covering common topics and answering questions that we get from clients on a regular basis.

Our most recent posts are listed below or you can use the categories, tags and search facilities on the right to find the information you are looking for.

If you can't find an answer to your question here, or simply need some specific debt advice then please don't hesitate to give us a call on 0800 987 1040

Recent Posts

On what grounds can a company director be disqualified?

Introduction

When a director fails to fulfill their legal responsibilities, they run the risk of disqualification. The rules of disqualification are laid down in the Company Directors Disqualification Act 1986 (CDDA); the act is designed to restrict the abuse of the limited liability company structure.

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Overdrawn Directors’ Loan Accounts in Insolvency Procedures

Introduction

A director’s loan account (DLA) can be a complex issue for some directors, especially where a company is insolvent.  Withdrawing money from a company requires careful consideration as it is a separate legal entity, with complex tax implications and usually open to more scrutiny.  It is unlike a sole trader and partnership business, where withdrawing money can be a fairly straightforward process.

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Proposed changes to limited company strike-off from Companies Register

In March 2018, the Department for Business, Energy & Industrial Strategy (BEIS) published a consultation document on insolvency and corporate governance. Among other proposals, they are looking into providing greater powers of investigation into the conduct of directors of dissolved companies following strike-off.

Strike off is the process by which a company is removed from the register at Companies House.  It ceases to exist as a legal entity and any assets it still owns at the date of dissolution go to the Crown as “bona vacantia” (property with no legal owner).

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What can you expect in a HMRC Tax Inspection?

Introduction

HM Revenue & Customs (HMRC) has in recent years increased its focus on limited companies, as the government attempts to recover lost tax revenue and penalise or discourage companies from tax evasion.

Unfortunately, a business cannot eliminate the threat of a tax investigation and can be chosen at random for a routine check, but some may be targeted by HMRC for a number of different reasons. This can be a lengthy, expensive and often painful experience for the business and their accountant.

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How to Reduce the Threat of Insolvency

Introduction

Running a business can often be challenging and a downturn in the market or the loss of a major client can result in the threat of insolvency.  For some businesses, it may already be too late to avoid this however, seeking early advice from a professional, and exploring all options, may help you save the business.

In this article we examine a wide range of possible options available to directors, wishing to minimise the risk of insolvency.

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Members’ Voluntary Liquidation – A guide to liquidating a solvent company

Introduction

 A Members’ Voluntary Liquidation (MVL) is a formal process for bringing the life of a limited company to an end and distributing the remaining assets to shareholders in the most tax efficient way. This can be done for reasons of retirement, an intractable shareholder dispute or simply because the company is no longer needed. The company must be solvent – i.e. it can afford to pay all of its creditors including any tax becoming due and still have funds left for the shareholders.

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To Liquidate or Strike Off an Insolvent Company?

Introduction

Closing down an insolvent company can seem like a minefield, and it is often difficult to navigate your way through all the jargon.  In this article we discuss the differences between dissolution (strike off) and liquidation (winding up), and outline the key features of each option.

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The difference between Liquidation and Administration

We’re often asked about the difference between Liquidation and Administration and when one should be used over the other. They’re both formal insolvency procedures to help address a company that is insolvent, but there are significant differences between the two.

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Changes to IR35 and the impact on Personal Service Companies (PSCs)

Introduction

The amount of tax contractors pay through their Personal Service Companies (PSCs) has been on the radar of HM Revenue & Customs (HMRC) for some time.  Intermediaries’ legislation and subsequent changes, most recently this April, are requiring contractors to make decisions about whether or not to continue trading through a limited company.  In some cases clients are now being forced to move onto payroll without having time to plan an appropriate closure of their limited company, which may cause issues especially if the company still has a significant tax liability.

Bridgewood has been advising contractors and working alongside accountants in this area for some time, and in this article we discuss the implications of IR35 and explore what options contractors have, should their company need to cease trading.
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Key changes to insolvency rules in April 2017

Introduction

The most significant changes to insolvency legislation (in England & Wales) in the last three decades will be introduced on the 6th April 2017, aimed at modernising and updating present procedures. The Insolvency Act was introduced in 1986 and any existing rules and amendments will be consolidated into a single piece of legislation, which should streamline systems and communication.

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