Bad News for Contractors as Insolvency levels set to rise in the last half of 2012
The number of insolvencies expected to affect UK companies is set to rise, according to analysts at bankruptcy-insolvency.co.uk, an established debt advice service. With more businesses failing to budget accordingly for HMRC liabilities, many SMEs (smal and medium sized enterprises) could be pushed over the edge.
The good news is at PayMatters we can help ensure all taxation and crown liabilities are kept fully up to date in a compliant fashion. Our experienced accountants have helped many individuals deal with business and personal financial problems, including directors of limited companies with personal guarantees.
Bankruptcy occurs where a creditor presents a bankruptcy petition against you which results in the making of an order by the Court. Following the making of the order all of a bankrupt's assets, normally apart from everyday household goods and your tools of the trade, vest in his trustee who realises them for the benefit of the creditors. Following changes to the law in the Enterprise Act 2002, individuals may, in appropriate circumstances obtain a discharge from bankruptcy after 12 months.
To help avoid personal bankruptcy individuals often consider an Individual Voluntary Arrangement under the provisions of the Insolvency Act 1986. No matter how bleak the position might look, this is can help ease the burden of significant debt problems. For personal debts an Individual Voluntary Arrangement ("IVA") is a recognised legal procedure that enables an individual to enter into a binding agreement with their creditors detailing how that individual's debts and liabilities will be dealt with, it allows an individual to retain control of his business or continue life as normal.
In essence, an IVA allows individuals with cash flow difficulties to repay his liabilities, either in part or full depending on what they can comfortably afford over a period of time. Similarly companies can do an IVA equivalent called a CIVA (including the Inland Revenue and VAT).
If you are a contractor working as an employee through PayMatters or a contractor trading through your own limited company please don't hesitate in contacting us on any aspect of personal, business or company insolvency advice. We can the look at putting you in touch with people who can help.
At PayMatters Contractor Umbrella Company our number 1 goal is to pay people on time, everytime.
Our Freephone number is 0800 121 6513.