High Court dismisses Tenant Tax review
In 2015 the Government announced plans to restrict tax relief on finance...Read More
Often something completely beyond your control can leave you and your business facing a difficult financial situation. To help avoid business failures and prevent personal debt from becoming unmanageable, it is important to seek professional advice as soon as a problem is identified.
Our experience shows that when running a business, whether you’re a sole trader, in partnership or have a limited company, the quicker you act the more chance you’ve got of being able to save your business or personal affairs. Many situations can be resolved without the need for a formal insolvency process so getting advice at an early stage is vital.
Administration is a legal rescue procedure used for companies when there is reasonable expectation that a solution can be found. This process creates a legal stay against creditor action to safeguard the business and give you and your company breathing space whilst you work with us to decide on the best recue strategy.
Bankruptcy as the result of a Court order is a process that takes an individual's assets and sells them for the benefit of those who are owed money. You may either petition the Court yourself or wait for a creditor to do so.
If your home has equity it is likely that it will be realised in the bankruptcy but this does not necessarily mean you will lose your home. There are also certain assets that will not be taken from you including those required for basic human needs, the tools of your trade and your pension.
However, bankruptcy has many consequences including restrictions on your finances and working life and these can be difficult to grasp. We work with you to make sure you understand how bankruptcy would affect you and your family and the best course of action to take.
Company Voluntary Arrangement (CVA)
A CVA is a flexible arrangement between a company and its creditors and involves making a monthly contribution from profits or an asset to fund a lump sum payment. A CVA often pays creditors considerably less than their full amount due and at the end of a successful CVA, any remaining debt will be written off.
If a CVA is the right option we will help you draft a proposal and present it to creditors. If 75% by value of creditors vote in favour then the CVA is approved and becomes binding. As long as the company then does what it has promised to do, the creditors must leave it alone.
Creditors’ Voluntary Liquidation (CVL)
Sometimes, business recovery or rescue is not a viable solution. Initiated by the directors and shareholders a CVL is the liquidation of an insolvent company and brings the company's life to an end. The creditors of the company must then approve the choice of liquidator since the company is not able to settle all of its debts.
We will advise you on the legal, technical and practical issues so that you fully understand your obligations including what you can do to minimise further deterioration of the company.
Members' Voluntary Liquidation (MVL)
An MVL is the liquidation of a solvent company. Whilst the directors initiate this process it is the shareholders who appoint a liquidator and since the company is solvent, all debts are settled and any cash remaining is passed to the shareholders.
There are many good reasons for an MVL and since distributions from liquidation may be treated as capital distributions, one of the most common is to ensure shareholders pay less tax.
We have also seen MVLs motivated by amongst other things, the company having run its course and being of no further use: the directors wishing to retire, or in many cases to facilitate the reconstruction of the company and create separate businesses going forward.
Often the question of how to pay for proper advice is just one more worry so we initially offer you our time for free. To discuss your business or personal needs please contact our Recovery and Insolvency team or send us an online enquiry.
14/10/2016 - 15:32
A team of six staff from PEM’s Virtual Finance Office team gave up their beds for one night to raise money for charity Action for Children which supports vulnerable children and young people.Read more >
30/09/2016 - 11:38
George Lister Engineering, the long established Cambridge-based company, is pleased to announce that directors Mark Hallam and Mark Pauley have purchased the remaining shares from fellow shareholder and director, Martin Murray.Read more >
19/08/2016 - 10:46
We're delighted to welcome 11 trainees who will be working towards their professional qualifications.Read more >
14/07/2016 - 11:28
Cambridge based accountancy firm PEM presented a cheque to The Sick Children’s Trust for £22,369.27 following a year of fundraising.Read more >
16/06/2016 - 11:44
Cambridge based accountancy firm PEM take on the Three Peaks Challenge raising over £20,000 for The Sick Children’s Trust.Read more >
22/04/2016 - 16:32
Element Energy Ltd, the strategic energy consultancy company, is pleased to announce the formation of an expanded new management team following the partial buyout of the existing shareholders and directors, Shane Slater and Ben Madden.Read more >
16/03/2016 - 16:15
PEM tax experts respond to the 2016 Budget announcement...Read more >
05/01/2016 - 10:27
Warren Tilbury is announced as the new Managing Partner at leading independent accountants PEMRead more >
26/11/2015 - 17:26
PEM Corporate Finance, a division of PEM, has received their second major award of the year in recognition of their expertise in supporting SMEs through the succession buyout process.Read more >
25/11/2015 - 14:42
In July this year Adobe Flash, a free program that is installed on more than 1 billion computers, was found to have a serious vulnerability that could allow hackers to take control of computers and run files on them. So how do you minimise the risk to your computer getting hacked?Read more >