Originally written by David Tattersall on Small Business
Can I liquidate my company if I have a Bounce Back Loan?
As a company director, neglecting creditor interests will instantly land you in the firing line of an insolvency service investigation into director conduct when entering company liquidation. Taking the informal company closure route by striking off your business, also known as dissolution, is a route designed for businesses laden with no company debts. Therefore, investigations into director conduct are not conducted as standard during company strike off.
A new legislative measure preventing company directors from informally closing their business to avoid an investigation into director conduct, instead of entering a formal insolvency process, is due to come into play. The first reading in Parliament recently took place and the measure appears to come into force in late 2021.
As Bounce Back Loan repayments fall due following the optional pause on repayments, company directors will need to brace company cash flow for additional outgoings. Currently, if this route is pursued by your limited company with an outstanding Bounce Back Loan, rather than a formal insolvency route, you will likely receive an “Objection to Company Strike Off Notice”. After the rules are approved, this will ring
Tag Archive for COVID-19
Hot Business News Today
Can I liquidate my company if I have a Bounce Back Loan?
by David Tattersall • • 0 Comments
Originally written by David Tattersall on Small Business
Can I liquidate my company if I have a Bounce Back Loan?
As a company director, neglecting creditor interests will instantly land you in the firing line of an insolvency service investigation into director conduct when entering company liquidation. Taking the informal company closure route by striking off your business, also known as dissolution, is a route designed for businesses laden with no company debts. Therefore, investigations into director conduct are not conducted as standard during company strike off.
A new legislative measure preventing company directors from informally closing their business to avoid an investigation into director conduct, instead of entering a formal insolvency process, is due to come into play. The first reading in Parliament recently took place and the measure appears to come into force in late 2021.
As Bounce Back Loan repayments fall due following the optional pause on repayments, company directors will need to brace company cash flow for additional outgoings. Currently, if this route is pursued by your limited company with an outstanding Bounce Back Loan, rather than a formal insolvency route, you will likely receive an “Objection to Company Strike Off Notice”. After the rules are approved, this will ring
Hot Business News Today
How Post-Pandemic Business Trends Will Shape the World
by Adrian Nita • • 0 Comments
Covid-19 has fundamentally changed business operations around the world, and the transformations are here to stay.
Hot Business News Today
One third of small businesses turn to Bank of Mum and Dad
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
One third of small businesses have turned to the Bank of Mum and Dad to help them get through the Covid crisis.
Faced with an emergency, more small business owners to turn to family ahead of banks for financial help. Forty-six per cent turn to family during the crisis compared to 40 per cent who turn to banks, according to a Liberis survey.
And over a third (35 per cent) said they turn to the Bank of Mum and Dad specifically, while one in five (19 per cent) said they turned to close friends.
>See also: Small businesses selling into EU face £180m in extra red tape costs
Four out of five small businesses have needed financial support during Covid – an estimated 4.9m of the country’s 6m SMEs — and over three quarters have sought commercial financing.
More than a third (37 per cent) of small business owners have taken on a second job to keep their businesses afloat, and more than a quarter (28 per cent) have considered doing this.
Going without food
Alarmingly, 6 per cent of SMEs surveyed said they were saving money on food, eating less and, occasionally, skipping meals to try and save money
Hot Business News Today
One third of small businesses turn to Bank of Mum and Dad
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
One third of small businesses have turned to the Bank of Mum and Dad to help them get through the Covid crisis.
Faced with an emergency, more small business owners to turn to family ahead of banks for financial help. Forty-six per cent turn to family during the crisis compared to 40 per cent who turn to banks, according to a Liberis survey.
And over a third (35 per cent) said they turn to the Bank of Mum and Dad specifically, while one in five (19 per cent) said they turned to close friends.
>See also: Small businesses selling into EU face £180m in extra red tape costs
Four out of five small businesses have needed financial support during Covid – an estimated 4.9m of the country’s 6m SMEs — and over three quarters have sought commercial financing.
More than a third (37 per cent) of small business owners have taken on a second job to keep their businesses afloat, and more than a quarter (28 per cent) have considered doing this.
Going without food
Alarmingly, 6 per cent of SMEs surveyed said they were saving money on food, eating less and, occasionally, skipping meals to try and save money
Hot Business News Today
Small business owners who duck out of repaying Covid debt face ban
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small business owners who wind up their companies to avoid having to repay Covid debt could be banned from being company directors.
Owner-directors found guilty of abusing insolvency procedures to duck out of having to repay Covid debt taken out by their small business could be banned for up to 15 years.
About 1.5m small businesses have taken out Bounce Back Loans through a scheme that offered up to £50,000 interest free for a year.
>See also: Nearly two thirds of Bounce Back Loans could go bad, says government
And the new beefed-up Insolvency Service will be able to investigate retrospectively to already wound-up companies.
The government promised to clamp down on any potential fraud in repaying emergency Covid-19 loans in the Budget earlier this year.
Officials are keen to sew up the insolvency loophole to curb any losses to the taxpayer as banks start to charge interest or seek to recoup loans once the repayment holidays on the government-backed schemes end.
>See also: Half of small businesses will never repay Bounce Back Loans, warn banks
Dissolution via strike-off or voluntary liquidation is only supposed to be used by a small business without a prior insolvency and only when the company
Hot Business News Today
Small business owners who duck out of repaying Covid debt face ban
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Small business owners who wind up their companies to avoid having to repay Covid debt could be banned from being company directors.
Owner-directors found guilty of abusing insolvency procedures to duck out of having to repay Covid debt taken out by their small business could be banned for up to 15 years.
About 1.5m small businesses have taken out Bounce Back Loans through a scheme that offered up to £50,000 interest free for a year.
>See also: Nearly two thirds of Bounce Back Loans could go bad, says government
And the new beefed-up Insolvency Service will be able to investigate retrospectively to already wound-up companies.
The government promised to clamp down on any potential fraud in repaying emergency Covid-19 loans in the Budget earlier this year.
Officials are keen to sew up the insolvency loophole to curb any losses to the taxpayer as banks start to charge interest or seek to recoup loans once the repayment holidays on the government-backed schemes end.
>See also: Half of small businesses will never repay Bounce Back Loans, warn banks
Dissolution via strike-off or voluntary liquidation is only supposed to be used by a small business without a prior insolvency and only when the company
Hot Business News Today
April 12 reopening – which small businesses can reopen in England?
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Shops, pubs and restaurants and other small businesses have been reallowed to reopen, as of April 12.
However, the rules on social contact still apply: indoor settings must only be visited alone or with household groups; outdoor settings are limited to either six people or two households.
This includes non-essential retail; personal care premises such as hairdressers, beauty and nail salons; and indoor leisure facilities such as gyms and spas (but not including saunas and steam rooms, which are due to open on May 17).
>See also: Small business confidence grows as shops reopen in England and Wales
The majority of outdoor settings and attractions have also reopened, including outdoor hospitality, zoos, theme parks, drive-in cinemas and drive-in performances events.
Hospitality venues can open for outdoor service, with no requirement for a substantial meal to be served alongside alcohol, and the 10pm curfew has been scrapped. The requirement to eat and drink while seated will remain.
>See also: Covid-19 roadmap – when can I reopen my business in Scotland?
April 12 reopening for small businesses
Clothing shops
Homeware shops
Toy shops
Vehicle showrooms (other than for rental)
Betting shops
Tailors
Tobacco and vape shops
Electronic goods shops
Mobile phone shops
Auction houses (except for auctions of livestock or agricultural equipment)
Market
Hot Business News Today
April 12 reopening – which small businesses can reopen in England?
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Shops, pubs and restaurants and other small businesses have been reallowed to reopen, as of April 12.
However, the rules on social contact still apply: indoor settings must only be visited alone or with household groups; outdoor settings are limited to either six people or two households.
This includes non-essential retail; personal care premises such as hairdressers, beauty and nail salons; and indoor leisure facilities such as gyms and spas (but not including saunas and steam rooms, which are due to open on May 17).
>See also: Small business confidence grows as shops reopen in England and Wales
The majority of outdoor settings and attractions have also reopened, including outdoor hospitality, zoos, theme parks, drive-in cinemas and drive-in performances events.
Hospitality venues can open for outdoor service, with no requirement for a substantial meal to be served alongside alcohol, and the 10pm curfew has been scrapped. The requirement to eat and drink while seated will remain.
>See also: Covid-19 roadmap – when can I reopen my business in Scotland?
April 12 reopening for small businesses
Clothing shops
Homeware shops
Toy shops
Vehicle showrooms (other than for rental)
Betting shops
Tailors
Tobacco and vape shops
Electronic goods shops
Mobile phone shops
Auction houses (except for auctions of livestock or agricultural equipment)
Market
Hot Business News Today
How this London bakery found new revenue streams during lockdown
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Converted into a mini bakery, Alexandre Bettler’s spare bedroom was full of 25kgs bags of flour, fridges stacked on top of one another, with flour dust everywhere. In 2016, Alexandre Bettler decided to open his very own bakery business.
Bettler, a graphic designer, became interested in breadmaking as a hobby while studying at the Royal College of Art. He saw it as a means of communication (the French word for bread, “pain”, comes from the word “copain” or friend).
He began delivering his handmade sourdough loaves by bike to local friends in Walthamstow, East London. Soon he was delivering to local restaurants. Bettler realised he had outgrown their spare room and he opened the doors of artisan bakery Today Bread back in 2016. Not only was it a bakery but it had a 40-seat café as well. Soon, his bakery was selling up to 300 loaves a day.
Then the pandemic hit in March 2020.
Bettler was forced to close his doors and pivot to an online delivery service and takeaway almost overnight to keep going.
Thankfully, Square enabled him to get up and running as an online business within two days.
>See also: How to optimise cash flow