Category: Blog Article

In what has been another very difficult year for businesses, BLB Advisory looks at the highs and lows, and whether we’re heading for a more stable 2022.

This time last year we were looking forward with hope to a fully vaccinated population and some respite from this ever evolving virus. For a while the number of infections were down and all was looking as if we were going to get back to some sort of new normality. But with the Omicron variant and a surge in numbers of those with symptoms, that picture is less clear, and the new social distancing measures may or may not be enough to prevent a further full blown lockdown early in 2022. Yet again, we’re in a situation of the unknown.

BLB Advisory is officially two years old now! We’ve built on the success of our first year’s trading and this year we merged with a business in Hereford and opened a new office in Worcester. This means we’re able to offer support to our clients and contacts across three counties now, and beyond.

Because we are a forward thinking business, embracing technology and new working practices, we’ve been able to service our clients’ needs in what has been a very challenging business environment and we haven’t had to compromise on our standards where client engagement and contact is concerned.

How’s your Business?

Now that the much needed furlough scheme has ended and people are returning to work, the expected tsunami of business failures appears at least for now to have been exaggerated, although of course numbers are up on the rather false position from last year’s figures. A slightly more worrying statistic is that the number of County Court Judgments has surged again in the second quarter of 2021.

Registry Trust Chair, Mick McAteer, said, “We saw a huge increase in the number of judgments recorded in this quarter compared to the same period last year. At that time, interventions by government and regulators, and forbearance by creditors, in response to the Covid crisis had kept judgment numbers at historically low levels. But, as these measures were wound down, numbers began to rise again. The Covid economic crisis is far from over for financially vulnerable households.”

Whilst these numbers are a concern, there is to some extent some latent demand in the system, and it may take some time for the number of insolvencies to return to pre pandemic levels.

Having said that, businesses in the retail and hospitality sectors are still struggling, and the thought of further lockdowns in the New Year won’t see many business owners heaving a sigh of relief as 2021 comes to an end.

We’ve already covered in detail the new budgetary constraints that will affect businesses in the coming year in our last blog. Suffice it to say, 2022 is also likely to be a challenging year.

As ever, if you need our assistance in regard to any matter then please don’t hesitate to get in touch with a member of the team, no matter what time of the year it might be. Experience has shown us that Christmas can be a real stress point for many businesses, and we are just a phone call or email away.

Given the foregoing here’s to a more stable New Year!

The government, conscious of the increased stress on those individuals with spiralling debts and creditor pressure, has put legislation in place to allow a breathing space where they are protected from creditor action while they take advice on how to deal with the issue. These regulations came into force on 4 May 2021, and many debt charities have signed up to give advice to individuals who might need temporary protection from creditors while they figure out the best course of action.

There are from the outset two categories: Standard Breathing Space and a Mental Health Crisis Breathing Space. There are differences between the two, which we will explain later in this blog.

The Standard Breathing Space (SBS) is available to any individual with creditor issues. It gives them up to 60 days’ protection from most “creditor action”. This means that in most cases creditors can’t contact them, and that interest and charges will be frozen.

A Mental Health Crisis Breathing Space is only available for an individual who is currently receiving mental health crisis treatment and as such is certified by an Approved Mental Health Professional (AMHP). If those criteria are met then the breathing space will last as long as the person is receiving treatment plus an additional 30 days (irrespective of how long the treatment lasts).

It should be noted that the breathing space in both cases can only be accessed through a debt advisor. The advisor in the case of the Standard Breathing Space must review the position between days 25 and 35, and the SBS can only last up to a maximum of 60 days.

The individual must engage with their debt advisor (either licensed by the FCA or a Local Authority) to prevent people just putting one in place and then not dealing with the issues. Whilst subject to the Breathing Space, individuals must also pay their ongoing liabilities and not incur any further debt over £500.

An SBS is only available once a year, whereas the Mental Health Crisis Breathing Space has no limit.

Is everyone eligible for an SBS?
Broadly speaking, most individuals are eligible for an SBS. However, sole traders who are registered for VAT or are part of a partnership aren’t.

In addition, anyone who’s subject to a current Bankruptcy Order, Debt Relief Order, Interim Order or Individual Voluntary Arrangement (IVA) may not apply.

The debtor must also agree to give all relevant information about their debts to their advisor, as they may decide that an SBS isn’t appropriate for you.

Is this going to catch on?
As the Insolvency Service doesn’t (yet) publish statistics about the debt respite scheme, it’s unclear how many people will take advantage of it. It’s also slightly unclear as to what benefit it will be for many people with debt problems.

In October alone the figures for personal insolvencies were as follows:

• 7,031 IVAs registered (using a three-month rolling average)
• 1,937 DROs (Debt Relied Orders)
• 601 bankruptcies (518 debtor applications and 83 creditor petitions)

Many will question the benefits of an SBS if it only lasts for a short period and doesn’t solve the problem. More than likely, after the breathing space, the majority of individuals will end up going into an IVA anyway. Our view is that when an individual is facing financial hardship the level of stress is extremely high. Taking advantage of a breathing space to reduce the immediate pressure and give that person the time to take a step back to give proper evaluation to the options available can only be seen as a positive step. Hopefully this will also prevent people being pressurised into going into an IVA when perhaps bankruptcy was a better option.

For obvious reasons, the Mental Health Crisis Breathing Space is a very different animal, and with the reported huge increase in those suffering mental health issues, this is a very positive step by the Government to provide some help when it is most needed.

The tale of the Phoenix rising from the ashes

For a very small number of Directors, running a company and not being able to pay crown debts on time almost becomes a necessity in order to be able to continue to trade through difficult times. When the debt gets too big to manage, or Her Majesty’s Revenue & Customs (HMRC) starts applying pressure with the threat of a Winding Up Petition, the Director is often left with no choice but to consider liquidating the company and to start trading again with a new one. The process is called Phoenixism (or Phoenixing).

Whilst it is generally accepted that the vast majority of Directors don’t deliberately cause their Company to fail, there are a minority whose moral compass seems to be set due south, and who have no qualms whatsoever in using this method to avoid crown debt every few years.

To this end, HMRC needed to come up with a solution to tackle those Directors who are suspected to be repeat offenders. The Finance Act 2020 received Royal Assent on 22 July 2020 and introduced HMRC as a secondary preferential creditor in insolvencies from 1 December 2020. This was widely reported at the time. However, the Act also introduced ‘Joint and several liability of company directors’. This will make directors personally liable for tax debts in situations where they are suspected of abusing the insolvency framework in order to avoid paying taxes. These new provisions only take effect in respect to debts incurred after 22 July 2020.

The legislation is narrowly defined to target those Directors who:

• use insolvency to side-step their tax liabilities; or
• do not pay proper regard to their tax affairs

However, there are two de minimus thresholds and BOTH need to be met before HMRC will consider taking action. These are driven by the will to encourage start-up businesses and not penalise them unduly. The thresholds are:

• The total unpaid tax liability of the liquidating company must exceed £10,000; AND
• The debt due to HMRC must be more than 50% of the company’s total unsecured creditors

In addition to meeting these thresholds there are a further four conditions that must be met before HMRC can consider issuing the notice. These are as follows:

• In the last five years the individual has a relevant connection to at least two “old” companies that were subject to an insolvency procedure and had a tax liability
• A new company is or has been carrying on a similar trade to any two of the old companies
• The individual has a relevant connection to the old company
• The relevant old companies have a tax liability of more than £10,000 that is more than 50% of those companies’ liabilities to their unsecured creditors

The Notice
If HMRC decides to issue a notice (and it must do so within two years of discovering that an individual met all the criteria) then the effect will be that the director of the “new” company will be joint and severally liable for any HMRC debt for five years from and including the day that the notice is given. This is in addition to any tax liability in respect of either (or both) of the two previous companies.

Turnaround Specialists
For individuals who have come in as turnaround specialists there is effectively an exemption for the joint liability notice.

Conclusion
Clearly for directors (and associated “relevant” persons) this could have far reaching consequences in the future. There may already be some directors out there who have already satisfied the criteria but are yet to receive a notice from HMRC. If you think you fall into this category or want detailed advice on the ramifications of the legislation then please do not hesitate to contact us.

Following the recent budget, we have reviewed the main points and we’ve provided some thoughts what these changes may mean.

Personal Taxes

The personal tax allowance will be frozen at £12,570 for three years. This is unusual as personal allowances have usually been increased year on year. However, with expected wage rises, this means that individuals will see an increase in their personal taxes.

There will be no change to the tax band thresholds. Again, historically these thresholds have increased over time, but they will be frozen until 2025/26. This means those receiving even modest wage increases will pay more tax. There has been no move on the actual tax rates however, being left at 20, 40 and 45% (note – different rules apply to Welsh and Scottish taxpayers).

Dividend Tax

Although this is not strictly part of the budget as it had already been announced, new rates for tax on dividends from April 2022 are as follows:

• 5% for basic rate taxpayers
• 5% for higher rate tax payers
• 1% for additional rate taxpayers

This tax has been increased to fund the planned investment into health and social care, and should be ring fenced for that purpose. It should be noted that if you hold shares in an ISA or pension, these dividends are not subject to dividend tax, making both forms of investment even more attractive.

Green Savings

The government had already announced that they would be launching a “green” savings bond. These bonds have now been launched offering a 0.65% fixed three year rate on monies invested in green projects. These bonds don’t look particularly attractive as there are other products on the market with green credentials but offering higher rates of interest. It will be interesting to see what the take up of these bonds is.

Universal Credit Taper Tate

As the additional payments to those on Universal Credit have been removed, the quid pro quo has been that the government has reduced the taper relief so that those claiming can earn an extra 8p per £1 of net income (down from 63% to 55%). This obviously benefits only those in work.

Pensions

The access to pensions has taken a hit. The age when those with private pensions could have access to their pensions (and of course to the 25% tax free amount) will go up from 55 to 57 from April 2028. The 48 year olds who where planning perhaps to pay off a mortgage or buy themselves a classic car need to take note here.

The Big One

As with dividend tax, a rise of 1.5% on NIC was announced in September 2021, again to fund health and social care – it’s called the Health and Social Care Levy. Technically, it’s part of NIC until April 2023, when it becomes a tax in its own right. This Levy (from April 2023) will also apply to those in work who are above the State Pension age. Employers will also have to pay. This is therefore one of the biggest increases in taxation across the board.

Some good news for employees:

For those over 23, the National Living Wage will increase to £9.50. There are also similar rates of increase for those on the National Minimum wage, although apprentices benefit the most.

Tax on Businesses

This is all about aligning taxable earnings. From April 2024, earnings by sole traders or partnerships will have to align with the tax year to which they relate. This means that if a business has a different year end to the tax year it will need to apportion the profit accordingly. It might be worth changing your year end to align with the tax year to avoid complications further down the line. HMRC is currently thinking about whether it should change the tax year to 31^st December or 31^st March, rather than the rather arcane 5^th April. Watch this space for a report on their deliberations.

Anyone already reporting their accounts digitally will be well on the way to embracing this new regime – although the government has extended the deadline when this will be mandatory to 6^th April 2024 for sole trader businesses and 6 April 2025 for LLPs and other types of partnership.

Corporation Tax Rates

The future rise in CT rates was actually announced in the Spring 2021 budget, so it shouldn’t be a shock to most readers, but it’s worth reiterating the proposed new rates.

CT will rise from 19% to 25% in April 2023 for companies with profits exceeding £250,000. The 19% will remain for those showing profits of less than £50,000. Those companies that fall between the two will pay the higher rate reduced by a marginal relief.

Investment in Capital Expenditure

As many pundits had predicted, the 100% tax relief on qualifying capital expenditure has effectively been rolled over until the end of March 2023. In certain cases (up to March 2023) this relief could be as much as 130% and so companies (it only applies to incorporated businesses) looking to invest in plant and machinery need to carefully consider when to purchase it to qualify for the “super deductions” available.

Some Social Changes

Theatres and galleries will benefit from a cultural tax relief on new exhibitions and productions until March 2024. There will also be a business rates relief for qualifying businesses in the leisure, hospitality and retail sectors, which is estimated to mean 50% off the rates bill for over 90% of those businesses.

And finally a small glass of something….

Rishi Sunak has promised an overhaul of the current alcohol system to one based on the alcohol content of each drink. Many distillers have complained that this system would punish the artisan producers of spirits as their gins and vodkas are typically stronger than supermarket offerings. They point out that most alcoholics don’t buy the more expensive brands…

There will be relief on beer in kegs of over 40 litres too – but again Sunak has been met with anger by the craft beer producers who point out that the majority of them produce kegs of no more than 20 litres.

As with every budget, there is good news and bad news, and how this will work in real terms is still yet to be seen. But at StarAdvise we will always endeavour to keep you updated with the latest developments as we find them.

Many businesses have already been affected by the recent price hikes in energy prices and the difficulty in the supply of fuel, and it’s predicted that even more businesses will suffer as a consequence of the knock-on effect. Will your business be one of them?

The unprecedented rise in the wholesale price of gas in the past few weeks has led to the collapse of quite a number of the smaller gas suppliers. The government has refused to bail them out, saying that their business model was poor, they shouldn’t be rewarding businesses for failure or mismanagement, and that clearly these companies were not resilient to fluctuations in wholesale prices. There is a list of other smaller companies that are thought to be at risk, and consequently the government is considering offering state backed loans to the larger suppliers in order for them to take over the millions of customers thought to be caught out by the collapse of the smaller suppliers.

The process for transfer of customers over to a new supplier is in fact well documented and shouldn’t leave customers high and dry, and is to some extent protected by the price cap.

Kwasi Kwarteng (the Secretary of State for Business, Energy and Industrial Strategy) and the OFGEM chief, Jonathon Brearley, issued a joint statement saying: “The recent increase in wholesale global gas prices continues to be a cause of concern for consumers, businesses and energy suppliers across the UK.”

The issue isn’t one of supply – fortunately – but what happens when your business relies heavily on gas (or electricity) and the price increases very rapidly?

In the case of C F Fertilisers, the price hike meant it wasn’t economically viable for them to continue to produce fertiliser. In turn, this meant that they couldn’t produce the by-product – CO2. Then this, in turn, as we all became only too aware, meant that the food industry (amongst others) was temporarily brought to its knees as the gas is vital for a large number of supermarket products. C F Fertilisers supplies around 60% of the CO2 required in the food industry. In some ways they are very lucky. The essential nature of their product meant that the government could step in and they have agreed a three week “rescue” package while the food industry and the company agree new terms.

Will your business be so fortunate?

Smaller businesses are rarely offered the level of protection seen in the case of C F Fertilisers, or offered any handouts by the government to continue trading. If your business is facing such issues, there are insolvency procedures aimed to protect you through these challenging times that offer a breathing space while the market stabilises.

The army has now been deployed to help alleviate the interruption in supply caused by a lack of drivers that continues to cripple the country. Again the fuel giants state that there is no actual problem with the manufacture of fuel, just that they can’t get it to the stations. This has no doubt been exacerbated by the panic buying of fuel. One tanker driver interviewed on Monday 27^th September said that his tanker was itself “on fumes” as he was unable to get into a filling station for diesel for his own tanker.

If you’re in the logistics business or have vehicles delivering to customers, this must be significantly affecting you and prompt action might actually save your business. Despite what the fuel suppliers say, this problem is unlikely to go away anytime soon.

If you have any problems within your business, please contact us.

Even though this year’s autumn budget won’t take place until 27^th October, some commentators are saying that perhaps the biggest news has already been announced: the Health and Social Care Levy. We also know that there’s going to be an increase in dividend tax and National Health contributions to fund this, and that it will come into force in the 2022/23 tax year.

With huge announcements having already been made and with the pandemic having racked up a sizeable debt, is it inevitable that Rishi Sunak will introduce even more financial blows to repay what we as a country owe? Although we can’t say for sure, here are some of the likely culprits in what is being described as a “technical” budget.

Inheritance Tax (IHT) and Capital Gains Tax (CGT)

The Office of Tax Simplification recently reviewed both of these forms of taxation. Following this it was suggested that in the case of IHT some of the technical rules could be simplified. This would result in increased revenue for the treasury without the need to alter headline tax rates. The current system raised over £570m for the treasury in July 2021, and this simplification would raise even more – yet, crucially, not affecting the vast majority of tax payers, whose estates would fall below the current threshold. Expect there to be “technical” changes which generate more income from this source.

An increase in CGT might be on the cards too. Some pundits have hinted that Mr Sunak might seek to make them the same as income tax rates. The date for implementation of any such increase could be April next year – giving asset rich business owners an incentive to sell up before then, and, in turn, resulting in a cash bonus for the Treasury. A contrary view is that as NIC has already been increased that the chancellor might just focus on technical simplification to cut back CGT relief.

Will inflation mean an interest rise?

Of course the Bank of England (BoE) controls the interest rate, but it’s clear that inflation is running at well above their target of 2%, notably with wage increases of well over 5% in some sectors (hospitality for one). Clearly the Government wants the interest rate to stay as low as possible because it has to service the debt incurred during the pandemic. The BoE has put together some quantitative easing strategies to relieve these inflationary pressures, and so it’s unlikely that we’re going to see an interest rate hike this calendar year. However, if these inflationary pressures continue into next year, then at some point we’re going to see an interest rise

Stealth taxes?

One way that the Government can improve their cashflow is the reform of the basis periods for self-employed people. It’s labelled as another simplification measure, and is being brought in along with Making Tax Digital (MTD). In practice, the quarterly reporting model will accelerate revenue for the Exchequer when it comes into force.

The freezing of the personal tax allowances (already announced) from April 2022 will raise further funds, especially in the face of rising wages, as obviously more tax will be collected.

There is already in place a “disclosure facility” to allow tax payers to admit that they may have over or erroneously claimed support during the pandemic, with the carrot of reduced or no penalties to those offenders who “come clean”.

Business Incentives

Clearly the Government needs to focus on some positive incentives to get businesses back on their feet. They already announced some measures around capital allowances in the March budget, but perhaps there will be some R&D tax relief hikes to encourage investment.

It’s also likely that there will be further additions to the Kickstart scheme and apprenticeship schemes, and perhaps further capital tax reliefs for investors in schemes such as EIS and SEIS.

The chancellor also promised the findings of the Business Rates Review. But don’t hold your breath that we’re going to get far ranging reforms to the current systems. Which is a shame as the system in its current guise is grossly unfair and due for a massive overhaul.

…and Finally Pensions

The Government have already announced that the “triple lock” will be temporarily set aside as the high rates of wage growth could mean that pensions rose faster than inflation. But is there going to be an inflationary increase? Politically it would be rash not to.

As far as private pensions go though, it’s likely that this technical budget will be looking at ways to further remove the various reliefs currently in place, and chip away at the huge annual cost to the treasury.

Even though restrictions have been lifted for a while and much of society has been trying to get back to normal (as best it can), support for businesses has still been ongoing. However, the 1 October sees the lifting of another form of protection for Limited Companies, with the suspension of the Winding Up moratorium coming to an end. Speaking to our debt collection contacts, there are a large number of suppliers waiting for the protection to end so that they can issue a winding up petition. Could this be the last straw for businesses that are struggling with cash flow?

According to a recent report by insolvency specialists, the number of businesses who are facing severe financial stress has gone up from about 500,000 to 650,000 over the last year. This may not come as a surprise considering the massive impact this pandemic has had on our economy. But it’s actually a strange environment. Some businesses are booming and have in fact benefited from the situation, others still remain in a zombie like state, just about surviving. Then there are those that have suffered greatly, or already failed.

Clearly many in the leisure and hospitality industries have welcomed the end of lockdown. Restaurant managers are reporting a surge in customer demand, which is probably most welcome. This is likely to be explained by a pent up need for people to go out and have a good time. But other sectors aren’t so lucky, and perhaps because of the paradigm shift in working practices caused by Covid, many of them will never get back to where they were pre-pandemic.

Financial Support

For many companies, borrowing money last year was a necessity. With such things as the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan scheme, there were plenty of opportunities for businesses to get financial support. But a year has now passed since the first loans were advanced, and companies are having to pay back what they borrowed, and more importantly with inevitable interest as the initial interest free period comes to an end. This is clearly going to have a further impact on cashflow, and for many companies who were already struggling to get by, this could mean they now face insolvency.

With more changes yet to come as we approach Autumn, such as the lifting of the suspension of the Winding Up moratorium, it could mean that distressed companies face even more problems. Although the lifting of this suspension is being phased out, with interim measures in place until 31 March 2022, it will still leave many companies vulnerable.

Applications for a County Court Judgment (CCJ) have increased almost twofold compared with the corresponding quarter of 2020 – with over 14,400 CCJs being granted from April to June 2021. This signals a real danger and it seems inevitable that there will be a tsunami of court actions when the rules change on 1 October.

The Autumn

As we leave the summer behind and all the support and restrictions disappear, we will have to wait to see what this means. We certainly don’t need yet another blow to our fragile economy, but many fear that the Autumn is going to be a very tricky trading period for thousands of businesses.

We also still don’t know what winter will bring with regards to the pandemic. A time when colds and flu are traditionally passed around, will this mean we face more restrictions that could further cause problems for businesses? The simple fact is that none of us can predict what is to come during the colder months. We can only hope that it will be much better than last year.

Regardless of what government support may be coming to an end, if businesses are in distress, then they can still get support from an Insolvency Practitioner such as StarAdvise. Speaking to an Insolvency Practitioner does not necessarily mean your company faces closure. In fact, more often than not we manage to save companies. But the earlier you reach out and ask for guidance, the better chance of moving forward you have.

If you’re concerned about your business finances, please do get in touch. We’d be happy to discuss your situation and offer advice that might help.

The effect of this pandemic has been felt by most people. As we know, it’s not all been bad news. Some companies have been profitable and others have changed their way of working to not only survive but actually grow. But there are still many businesses across the country that have suffered.

The statistics tell us that the increase in corporate insolvencies comparing July 2020 to July 2021 is up from 741 to 1094, a massive increase of 48%. It is also likely that these figures will increase further as a result of both furlough ceasing at the end of September and the fact that Bounce Back Loans are now having to be repaid. These two factors alone will cause problems for many companies.

However, as with all statistics, we might not be seeing the full story. The increase in corporate insolvencies may not be as alarming as it sounds. We need to consider that July 2020 was in lockdown. Even companies that were struggling were able to stay open because of the support available. This meant the numbers were inevitably lower in 2020 than in previous years. So directly comparing the two years may not necessarily be an indication that things are bad.

Furthermore, despite the rise in corporate insolvencies, there are still 953,000 jobs available in the UK. This is over 600,000 more than in the same period in 2020. Recruitment is definitely increasing, and one of the positives that many people are feeling as we come out of this pandemic is how we’re finding different ways to work. Companies are now more open than ever to working with their staff more flexibly, perhaps changing the way that we employ people forever. This could bring with it many benefits that could make businesses stronger in the future, allowing candidates from further afield to be hired and generating a more relaxed workplace. This can only have a positive effect.

But whatever way you decide to view the current state of affairs, the fact remains that many businesses are in distress and are facing difficult decisions. There could be a number of reasons for this, and, whatever is happening, companies should know that they are not alone. Whether it relates to the fact that a company is facing staff redundancies, they aren’t sure how they’re going to pay back loans, or whether they are finding it hard to pick up again after lockdown, problems are being seen in all areas and SMEs in particular seem to have been affected.

Getting Advice
When a business is in distress it can be hard to know what to do. However, at StarAdvise we have seen time and time again that the earlier a business asks for advice and support, the better chance they have of resolving their issues. It is rarely a case of either having to close or not, and we actively strive to keep a business open and operational wherever possible.

There are often a variety of options available that we are always keen to explore. But the truth is that the more problems are allowed to develop and the longer they aren’t dealt with, it reduces the number of options available. Therefore, as soon as a business owner or director first identifies any issues, we urge them to seek advice. Just asking a few questions and getting some professional guidance can be a great first step that can ultimately save a business. We encourage business owners and directors to be informed and gather as much information as possible, understanding the ramifications of each option, before making key decisions within their business.

StarAdvise offers any business owner or company director an hour’s free advice on the options available to them if they find their business in a distressed position. If you would benefit from seeking professional guidance, please contact us and we will arrange a suitable time to speak with you. The earlier you speak to us, the better chance you’ll have of a positive outcome.

As you may know, StarAdvise joined forces with BLB Advisory at the start of this year, and now BLB Advisory is growing even further. We have two new roles we’re recruiting for:

Insolvency Manager

Key responsibilities will include:

• Ensure all aspects of CVL and Administration cases are progressed efficiently
• Ensure all corporate cases are compliant in accordance with regulatory requirements
• managing a team of insolvency administrators to assist with case work
• to provide assistance and training to junior members of staff
• Review all communication to ensure it meets all company standards
• Make decisions with supporting information and record appropriately
• Maintain appropriate records of chargeable time spent on case work
• Attend and assist at meetings both in and out of the office when required
• Reporting directly to the appointment takers
• Participate in internal and external marketing events when required
• Maintain relationships with internal and external professionals and liaise with work providers as and when required
• JIEB/CPI or ACA/ACCA qualifications are desirable but not essential

We’re offering a competitive salary.  The package will depend on the qualifications and the depth of experience that the candidate can bring to our team.

To find out more and apply, please send your CV and a covering letter to info@blbadvisory.co.uk.

 

Insolvency Administrator

We are looking for an experienced Senior Insolvency Administrator or an Insolvency Administrator to join our growing team. The role is to deal mainly with corporate insolvency cases.

The Role

• Work closely with the appointment taking IP and Manager
• Take responsibility for new corporate insolvency assignments
• Manage all aspects of cases from start to finish

Experience and Skills

• CPI preferred but not essential
• Corporate insolvency background
• Minimum of 2 year’s insolvency experience
• Excellent technical skills and a great communicator
• Excellent IT skills, using Word and Excel
• Proficient in using the IPS package
• Highly professional
• Ability to work proactively with oversight supervision

We’re offering a competitive salary.  The package will depend on the qualifications and the depth of experience that the candidate can bring to our team.

To find out more and apply, please send your CV and a covering letter to info@blbadvisory.co.uk.

There was a lot of speculation in the run up to March’s budget announcement. Following the cost of the pandemic, it seemed inevitable that taxes would need to rise somewhere. But although there were some rises, there was also a great deal of welcome news, and support to businesses in many areas was extended, further helping through the ongoing effects of this troubling time.

But now another quarter has passed, and there are still many changes happening all the time. So, to help, I’ve put together a summary of where we’re currently at:

Options for paying back Bounce Back Loans

As of this month, for businesses that took out a Bounce Back Loan at the start of the pandemic, it is the end of the 12 month payment holiday, and they have to start paying it back. Companies can opt to pay back or all some of their loan to reduce the interest costs, but to help those who are still struggling, there is also the option for Pay as You Grow. With this companies can:

• Request an extension of their loan term to ten years from six years, at the same fixed interest rate of 2.5%
• Reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan
• Take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan

I owe a supplier money and I still can’t afford to pay them, can they wind me up?

The temporary restrictions preventing statutory demands and winding-up petitions being issued were due to come to an end on 30 June 2021. The Government announced on 16 June 2021 that they intend to pass legislation to extend these restrictions to 30 September 2021. These restrictions mean that a creditor may not issue a statutory demand or present a winding-up petition unless it has reasonable grounds to believe that Covid-19 has not had a financial effect, and the debtor would not have been able to pay its debts irrelevant of the pandemic.

Can my landlord now evict me?

Last year the government put a ban on landlords evicting firms for unpaid commercial rent. This was due to end on 30 June 2021, but it has now been extended for another nine months. This ruling stops landlords taking tenants to court for non-payment.

 Is the Coronavirus Job Retention Scheme still active?

The Coronavirus Job Retention Scheme (also called the furlough scheme) remains in place. For claims made up to and including June, the government will continue to pay 80% of an employee’s wages for the hours that they cannot work, capped at £2,500 each month.

The government then intends to begin removing the support over a period of time, tapering the amount that they are prepared to fund. In July they will pay 70% of wages, capped at £2,187.50 each month, and the employer will need to pay 10% (up to £312.50). Then between 1 August to 30 September 2021 the government will pay 60% of wages, capped at £1,875 each month, and the employer will need to pay 20% (up to £625).

Despite the recently announced delays to what has been termed Freedom Day, the government has said that there are no current plans to extend the scheme beyond 30 September 2021, when it is due to come to an end.

What are the Corporation Tax changes?

One of the taxes that did get changed dramatically in the budget was the policy of encouraging businesses to come to the UK with an appealing low corporation tax rate. You may recall that in recent years it has dropped to 19%, irrespective of whether you were a large corporation or a small business.

However, in April 2023 the rate of Corporation Tax will no longer be aligned between the two bands and the rates will be split as follows:

• Businesses with profits of £50,000 or less will continue with the 19% rate of tax
• Firms with profits of more than £250,000 will pay 25% rate
• There will be marginal relief for profits between £50,000 and £250,000.

 I’m Self-Employed, can I still get income support?

The Self-Employment Income Support Scheme will be available until September. The fourth grant under the scheme will be paid at 80% of 3 months’ average trading profits. It is paid out in a single instalment and capped at £7,500. The grant will be open to those who filed a Self-Assessment tax return for 2019-2020. The remaining eligibility criteria is unchanged. However, as widely reported in the press, the government is scrutinising professional advisors and whether they are complicit with assisting their clients in making false claims. It would be worthwhile for all self-employed workers to review the guidance to make sure that they genuinely meet the criteria.

What are the current VAT and Business Rates?

The existing VAT rate of 5% for hospitality, accommodation and attractions in the UK will be extended until the end of September. The subsequent rate will be 12.5% until 31 March 2022.

Eligible retail, hospitality and leisure properties in England will continue with 100% business rates relief from 1 April to 30 June 2021 and then, following this, 66% business rates relief is planned to be in place until 31 March 2022. There is a wide range of businesses that may be eligible for relief or assistance with business rates and we recommend that you contact your local Council to see what support they offer.

Suspension of wrongful trading provisions

The suspension of liability for wrongful trading in Great Britain continues until 30 June 2021 for directors who continue to trade a company through the pandemic with the uncertainty that the company may not be able to avoid insolvency in the future. This essentially means that if a company ultimately does get liquidated, the directors won’t get prosecuted for trading whilst it wasn’t making any profit. However, this will no longer be in place from July 2021.

At StarAdvise, we offer advice and guidance to businesses helping them through difficult financial periods. If you’d like to discuss any issues, please don’t hesitate to get in touch.