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Business and company solutions

Whatever your business and whatever its financial challenges at BEACON we can help you. Business rescue and recovery is a common phrase with many firms, but at BEACON we work harder to turnaround your business wherever possible.

Is Your Business Struggling?
Liquidation might not be the only or option available to you. There are a number of different rescue or turnaround options that may benefit your business. At BEACON we would be happy to discuss these with you.

If your company is experiencing financial difficulty or facing an impending problems, please feel free to contact us and we will work together to ensure the best outcome for all concerned.

Making that first call can often be the hardest thing. But it is also the most important. That is why we offer a free no-obligation consultation. At BEACON we are here to help you, not hassle you.

Call Matt Fox on 02380 651441 or email mfox@beaconllp.com

Business and Company Insolvency Options

Company Voluntary Arrangement (CVA)

A CVA allows Directors to retain control of their business whilst allowing a restructure or a change of approach. It is a procedure whereby a company can be ‘saved’ where for one reason or another it has suffered financial difficulties, but still has a viable business, which could survive if the burden of debt is reduced or even released.

The CVA is a formal legally binding settlement negotiated between the company and its creditors, a CVA can either allow historic debt to be settled in full, or in part, from future profits. It is a very good solution whereby the company can recover from the burden of the past to excel in the future.

How does a CVA work?
The company can agree to repay some or all of its debts from asset sales or future profits over an agreed period (usually up to 5 years).

Where a CVA is completed successfully, it may allow for the balance of debt to be written off where it cannot reasonably be paid.

CVA’s are mostly used as a procedure to pay debts, for example tax owed to HM Revenue & Customs via a formal legally binding arrangement.

How long does a CVA last?
This will depend upon financial position of the company and circumstances however it is common for CVA’s to last for between 3 and 5 years.

When will a CVA end?
Generally it will end when all sums due under the agreed CVA have been paid. In addition the company has successfully complied with its obligations due under terms of the Arrangement.

If you would like to discuss the possibility of a CVA for your company, call Matt Fox on 02380 651441 or email mfox@beaconllp.com. All initial consultations at Beacon are free of charge!

Administrations (AO)

Administration is a procedure available to a company that is likely to become insolvent or is insolvent. It places the company under the control of an Insolvency Practitioner and the protection of the Court.

If you have a core viable business that is failing, because of the burden of debt, a bad debtor or an onerous lease, an Administrator is able to trade the company and often rescue a business, thus saving employee’ jobs and preserving goodwill.

It is possible a deal can be agreed in advance to make sure that the inherent added value of the business is not lost, trading relationships are not interrupted and that service to customers is maintained.

There are a number of ways that the appointment of an Administrator can occur, by a number of people, depending on the circumstances and what is best for everyone involved.

If you are concerned about cash flow, the impact of a bad debt or if your company is subject to creditor pressure and you are considering restructuring and feel there is a viable business worth saving, contact Matt Fox on 02380 651441 or via email mfox@beaconllp.com to discuss whether an Administration would be right for your company.

Liquidation

When considering or commencing any liquidation at Beacon we will provide close support to you as directors, and or shareholders of the company.

We will provide a dedicated point of contact to you and your company and our team has a wide range of experience and knowledge within different sectors.

You want to be confident that Liquidation is the best solution for your company.

At Beacon we will help guide you through the liquidation process.

Creditors Voluntary Liquidation (CVL)

Do you feel that Liquidation may be the only way?

Is your company struggling to pay its debts as and when they fall due?

A CVL is a procedure whereby the director(s) and shareholder(s) of a company reach the decision to place the company into Liquidation in order to facilitate an orderly wind up of the company’s affairs. This may occur when the director’s believe that the company is no longer viable or is unable to pay its debts in a timely manner.

A delay in reaching this decision can cause directors to become personally liable for company debts. It is therefore essential that professional advice is sought as soon as is possible.

Whilst a CVL is director led, you will still need the assistance and guidance of a fully Licensed Insolvency Practitioner to place your company into CVL; and at BEACON we work with you through the process.

Contact Matt Fox on 02380 651441 or email mfox@beaconllp.com for free independent advice tailored to suit your company. All initial consultations at Beacon are free of charge!

Compulsory Liquidation (CWU)

Is your company is receiving County Court Judgments (CCJ’s)? If yes, then prompt action is required!

If your company fails to pay a debt when it is due, a creditor can commence proceedings to issue a petition to the Court for a winding up order – via the compulsory liquidation process.

A CWU is a Court driven process to wind up the company and the effect on your business can be devastating!

The quicker advice is sought, the more options that may be available to you and your company. Contact Matt Fox on 02380 651441 for independent professional advice. All initial consultations at Beacon are free of charge!

Dissolution/Striking Off

In certain circumstances a company can apply to the Registrar of Companies for dissolution. This is where the company is struck off the Register at Companies House.

BUT – this is not without risk!

To ensure Dissolution is done correctly, there are rules and procedures which must be complied with, and that you, as a director or shareholder, are not committing an offence.

Once a company is dissolved, if there are any remaining company assets or property, these now automatically belongs to the Crown!

Dissolution does not absolve directors or shareholders from any personal liability they may have.

At Beacon we can help you avoid the risks. If you wish to know more about this option, please contact us on 02380 651441 or email Cheryl@beaconllp.com.

Solvent Solutions (MVL)

MEMBERS VOLUNTARY LIQUIDATION (MVL)

  • Are you considering retirement?
  • Do you require a tax-efficient way of distributing accumulated profits to shareholders?
  • Are you looking to restructure your solvent business?

The Extra-Statutory Concession which allowed shareholders to realise assets informally, and pay Capital Gains Tax ended with effect from 1st March 2012. Informal distributions totaling over £25,000 per Company, are now subject to Income Tax.

Total distributions from solvent companies over £25,000 can be subject to Capital Gains Tax but this is only via an MVL.

BEACON, over many years of experience, have developed a streamlined process for assisting Director/Shareholders wishing to extract dividends from solvent companies in the most tax efficient way possible. Furthermore it can normally allow a same day payment of funds to Shareholders as a Capital Distribution.

The process is easy and straightforward for all involved:

  • BEACON will prepare and send all documentation via email and accept scanned, executed documents in return.
  • The Declaration of Solvency (a straight forward asset / liability statement of the company) is sworn in front of any solicitor or a commissioner for oaths (normally charging approx. £10) and then returned, either via post or email to us.
  • Once these documents have been received, the MVL can usually commence the same day, furthermore it is possible that funds available for payment to Shareholders can also be made on that same day, as a Capital Distribution.
  • Any VAT paid on our fee and disbursements can usually be reclaimed and paid out to shareholders (if the Company was VAT registered).

There are no hidden costs and in the vast majority of cases BEACON will charge a fixed fee, including disbursements, from £2,500 plus VAT.

CALL US

Call your local BEACON office today to arrange your free consultation.