OPTIONS FOR BUSINESSES THAT CAN’T PAY THEIR DEBTS by Natalie Hughes
Licensed insolvency practitioner, Simply Corporate
If your company is experiencing cashflow difficulties and needs time to address the problem, it is important to talk to your creditors and explain your situation.
In the majority of cases they will work with you. They are more likely to receive more of what is owed to them if you continue to trade.
However, if your negotiations are unsuccessful there are several formal insolvency solutions that we can provide to help get your business back on track:
Company Voluntary Arrangement (CVA)
A CVA is an alternative to liquidating a limited company, allowing it to trade out of its financial difficulties by making a formal agreement with its creditors.
The arrangement is legally binding providing protection for the company and allowing it to repay a proportion of its debts over a period of one to five years.
Administration This provides a company with
immediate legal protection from its creditors, whilst a rescue and recovery package can be formulated.
A Pre-Packaged Administration
A ‘pre-pack’ sees a business’s assets sold to a third-party (sometimes the company’s own directors) prior to a formal administration process.
This preserves its value and maintains relationships with customers and employees.
Creditors’ Voluntary Liquidation (CVL)
If none of the above solutions are possible, then it may be advisable to close your company voluntarily, paving the way for a fresh start.
A CVL is a quick and cost-effective way of formally closing a company to comply with your duties as a director.
Acting quickly and seeking the help of a licensed insolvency practitioner will ensure you understand all your company’s options, providing you with the best chance to save your business.
SWITCH TO ELECTRIC TO BENEFIT YOUR BOTTOM LINE by Adam Cunliffe
Brand manager, XLCR Vehicle Management
Paying more attention to your bottom line? There are many ways in which switching to electric vehicles can save your business money.
Purchasing a fully electric vehicle allows a business to claim enhanced capital allowances.
The full cost of any electric car with zero CO2
emissions can be
deducted from company profits before tax in the first year. This includes hire purchase agreements, or contract purchase agreements with final payments.
If you prefer to hire or lease, the full rental cost of an EV or plug-in hybrid vehicle (where CO2 emissions are lower than 50g/km) can be deducted from profits before tax, including any unrelieved VAT.
The running cost of an EV is considerably cheaper than the equivalent petrol/diesel car: around 5p/mile compared with 13p to 25p. And electricity isn’t considered a fuel for car fuel benefit purposes, either.
EVs operating in congestion or low emission zones are exempt from charges (with correct registration). In London this can be as much as £27.50/day for high polluting vehicles.
Company car tax (Benefit in Kind) for drivers is considerably lower, enjoying 2 per cent BIK until at least April 2025, compared with between 20 to 37 per cent for petrol or diesel alternatives.
Not only does this result in income tax savings for employees, it substantially reduces Class 1A Employers’ National Insurance Contributions.
EV charging points and installation for businesses, charities and public sector organisations can also be subsidised by up to 75 per cent using the Workplace Charging Scheme.
Eligible applicants receive a voucher of up to £350 per socket with a maximum of 40 sockets (1 per site).
100% electric cars from £121 +VAT per month
Never pay for fuel again Avoid congestion charges
Significantly lower car tax Save on corporation tax
Talk to our experts today on 01282 380 004
INSOLVENCY WE
Practical insolvency advice for directors & business owners
01282 222420
www.simplycorporate.co.uk
SAVE YOUR BUSINESS
MONEY. SWITCH TO ELECTRIC.
lcrGroup
www.thebestcardeals.co.uk
XLCR Vehicle Management Ltd is an independent credit broker (not a lender). We are authorised and regulated by the Financial Conduct Authority. Finance subject to status. Terms and other fees apply. XLCR Vehicle Management Ltd BB8 0BU.
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DEBT RECOVERY
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