# BRI UK > Here you will find news articles written by BRI Business Recovery and Insolvency, where we share our expertise and insights. --- ## Pages - [Corporate Social Responsibility Policy](https://www.briuk.co.uk/corporate-social-responsibility-policy/): At BRI Business Recovery and Insolvency (BRI), we are committed to conducting our business in a socially responsible and ethical manner. - [Email Sign Off](https://www.briuk.co.uk/signoff/): By accessing the Website, you agree that this Cookie Policy will apply whenever you access the Website on any device. - [Golf League Table](https://www.briuk.co.uk/golf-league/): BRI host a monthly golf society (“BRIGS”) in Northampton for our professional contacts on a number of different golf courses in the area. - [Provision of Services Regulations Summary Sheet for BRI Business Recovery and Insolvency](https://www.briuk.co.uk/provision-of-services/): The following information is for interested parties on the information required to be disclosed by the Provision of Services Regulations 2009. - [Briefings](https://www.briuk.co.uk/briefings/): If BRI do not have a briefing covering an issue then a member of the team will happily answer that query and consider adding the answer. - [Sitemap](https://www.briuk.co.uk/sitemap/): Full sitemap of BRI Business Recovery and Insolvency UK. Contact us for more details on how we can help your business. - [Debt Relief Order](https://www.briuk.co.uk/services/personal-insolvency/debt-relief-order/): A debt relief order is like a mini bankruptcy and is a way for individuals to deal with debts they cannot pay. - [Individual Voluntary Arrangement](https://www.briuk.co.uk/services/personal-insolvency/individual-voluntary-arrangement/): An individual voluntary arrangement (‘IVA’) is a legally binding agreement between an individual and their creditors to repay them - [Partnership Administration Order](https://www.briuk.co.uk/services/personal-insolvency/partnership-administration-order/): The court will only grant the Partnership Administration Order where it is satisfied that the partnership is unable to pay its debts - [Bankruptcy](https://www.briuk.co.uk/services/personal-insolvency/bankruptcy/): Bankruptcy is a way for individuals to deal with debts they cannot pay. It allows individuals make a fresh start free from debt. - [Insolvency](https://www.briuk.co.uk/services/insolvency/): We are an established insolvency practice committed to finding the right solutions for businesses and individuals in financial difficulty. - [Corporate FAQs](https://www.briuk.co.uk/services/corporate-insolvency/corporate-faqs/): Our Corporate FAQs include general information and should not be taken asa comprehensive statement of law. - [Cookie Policy](https://www.briuk.co.uk/cookie-policy/): By accessing the Website, you agree that this Cookie Policy will apply whenever you access the Website on any device. - [Creditor / Member Information](https://www.briuk.co.uk/services/creditor-member-information/): We're an independent firm of insolvency practitioners that finds the right solutions for businesses & individuals in financial difficulty. - [Members’ Voluntary Liquidation](https://www.briuk.co.uk/services/members-voluntary-liquidation/): Once a company is in a position to enter Members Voluntary Liquidation, the following steps need to take place to ensure smooth transition. - [HMRC and Creditor Pressure During Insolvency](https://www.briuk.co.uk/services/hmrc-and-creditor-pressure/): If your company is facing HMRC or a creditor pressure during insolvency then it will be better to address the problem straight away. - [Partnership Voluntary Arrangement](https://www.briuk.co.uk/services/personal-insolvency/partnership-voluntary-arrangement/): A partnership voluntary arrangement (‘PVA’) is a legally binding agreement between the partners & the partnership’s creditors to repay them. - [Personal Insolvency](https://www.briuk.co.uk/services/personal-insolvency/): At BRI UK, we specialise in the field of recovery and personal insolvency and believe that we offer sound, practical advice and solutions. - [Compulsory Liquidation](https://www.briuk.co.uk/services/corporate-insolvency/compulsory-liquidation/): Compulsory liquidation often occurs when one or more creditors petition the court for the company to be wound up. Find out more here - [Creditors Voluntary Liquidation](https://www.briuk.co.uk/services/corporate-insolvency/creditors-voluntary-liquidation/): A creditors’ voluntary liquidation avoids the need for any court involvement and is handled without the need to hold a creditors meeting. - [Company Insolvency](https://www.briuk.co.uk/services/corporate-insolvency/): For help and advice on company insolvency contact BRI today. We help both business and individuals with insolvency. - [Administration](https://www.briuk.co.uk/services/restructuring/administration/): In the run up to the administration, and during it, the company is protected by a moratorium meaning that no party can commence or continue. - [Court Approved Restructuring Plan](https://www.briuk.co.uk/services/restructuring/court-approved-restructuring-plan/): If your business is facing Insolvency, you may want to consider a court approved restructuring plan - contact BRI today. - [Company Voluntary Arrangement](https://www.briuk.co.uk/services/restructuring/company-voluntary-arrangement/): A company voluntary arrangement (‘CVA’) allows a business to continue to trade in its current form or provide for a controlled closure. - [Moratorium](https://www.briuk.co.uk/services/restructuring/moratorium/): A Moratorium provides breathing space for companies. They provide protection from creditors whilst the company explores rescue options. - [Informal Agreements with Creditors](https://www.briuk.co.uk/services/restructuring/informal-agreements/): Informal agreements with creditors are flexible arrangements made between a debtor and their creditors outside of formal legal proceedings - [Restructuring](https://www.briuk.co.uk/services/restructuring/): As with all such problems, when it comes to restructuring, the earlier BRI is called, the better the prospects of recovery and success. - [Services](https://www.briuk.co.uk/services/): Our services at BRI UK range from Restructuring, Insolvency, Members Voluntary Liquidation and HMRC and Creditor pressure. - [Contact Us](https://www.briuk.co.uk/contact/): You can contact us online or you can request a call back or video call, please send us your details by using the form. - [Personal Insolvency Frequently Asked Questions](https://www.briuk.co.uk/services/personal-insolvency/personal-faqs/): Here are some of our most common personal insolvency frequently asked questions. Please contact our team if you need further information. - [Meet the Team](https://www.briuk.co.uk/meet-the-team/): Meet our friendly and approachable Business Recovery and Insolvency team. Our experienced team are here to guide you every step of the way. - [About Us](https://www.briuk.co.uk/about-us/): About BRI - we specialise in the field of recovery and insolvency for companies, businesses and individuals. Contact Us today. - [Home](https://www.briuk.co.uk/): At BRI UK - Business Recovery and Insolvency, we specialise in the recovery and insolvency and offer sound, practical advice and solutions. - [Privacy Policy](https://www.briuk.co.uk/privacy-policy/): BRI Business Recovery and Insolvency is dedicated to protecting the confidentiality and privacy of information entrusted to us. - [News](https://www.briuk.co.uk/news/): Here you will find news articles written by BRI Business Recovery and Insolvency, where we share our expertise and insights. --- --- ## Posts - [A Charity Case – Insolvency Procedures for a Variety of Charity Organisations](https://www.briuk.co.uk/insolvency-procedures-for-a-variety-of-charity-organisations/): BRI helps with Insolvency Procedures for a Variety of Charity Organisations. Find out about how we can help and what the process is here - [BRI Charity Day 2025 - Dragon Boat Racing](https://www.briuk.co.uk/bri-charity-day-2025/): Here are the details of our 2025 BRI Charity Day! We are really looking forward to this year’s event – Dragon Boat Racing! - [What is an Insolvency Practitioner?](https://www.briuk.co.uk/what-is-an-insolvency-practitioner/): What is the Liquidation of a company? Liquidation is a legal process where a liquidator is appointed to "wind up" the company’s affairs - [Don't Worry, be Frappe; How BRI Helped a Coffee Supplier by Providing Insolvency Advice](https://www.briuk.co.uk/don-t-worry-be-frappe-insolvency-advice/): Don't Worry, be Frappe; How BRI helped a Coffee Supplier by providing insolvency advice – going the extra mile - [What is the Liquidation of a Company?](https://www.briuk.co.uk/what-is-the-liquidation-of-a-company/): What is the Liquidation of a company? Liquidation is a legal process where a liquidator is appointed to "wind up" the company’s affairs - [Insolvency vs Liquidation – What is the Difference?](https://www.briuk.co.uk/insolvency-vs-liquidation-what-is-the-difference/): At BRI – Business Recovery and Insolvency, we are on hand to become your trusted partner when it comes to insolvency & liquidation. - [What is the meaning of insolvency in business?](https://www.briuk.co.uk/what-is-the-meaning-of-insolvency-in-business/): Insolvency in business is where the business liabilities exceed its assets or there isn’t sufficient cash flow to cover financial commitments - [In Car Technology: BRI Business Recovery and Insolvency achieving a better return than the statement of affairs estimated outcome](https://www.briuk.co.uk/better-return-than-the-statement-of-affairs-estimated-outcome/): In Car Technology: BRI Business Recovery and Insolvency achieving a better return than the statement of affairs estimated outcome - [Court of Appeal Ruling on Car Finance](https://www.briuk.co.uk/court-of-appeal-ruling-on-car-finance/): The court of appeal ruling on car finance could lead to many individuals making multiple claims. Find out all there is to know with BRI. - [Taxi Repowering Company – Preparing for Liquidation](https://www.briuk.co.uk/taxi-repowering-company-preparing-for-liquidation/): When preparing for liquidation, it’s important that the company director makes things as easy and as smooth as possible. - [Creditors' Voluntary Liquidation vs Administration – What's the difference?](https://www.briuk.co.uk/creditors-voluntary-liquidation-vs-administration-whats-the-difference/): Creditors' voluntary liquidation vs administration – what is the difference? At BRI we help clients who are facing financial difficulty - [Retail Rescue: Alternative to Insolvency](https://www.briuk.co.uk/retail-rescue-alternative-to-insolvency/): At BRI Business Recovery & Insolvency, we support our clients & help them find an alternative to insolvency where possible. Contact us today - [Corporate Group Restructuring for Holdings Company](https://www.briuk.co.uk/corporate-group-restructuring-for-holding-company/): View our recent case study on how we helped rescue a holding company using corporate group restructuring. Contact us for advice and support - [The 2024 Autumn Budget and Members’ Voluntary Liquidations (MVLs)](https://www.briuk.co.uk/the-2024-autumn-budget-and-members-voluntary-liquidations/): Prior to the budget being delivered, changes to Capital Gains Tax and Business Asset Disposal Relief, were anticipated. - [What Happens to the Director of a Company in Liquidation?](https://www.briuk.co.uk/what-happens-to-the-director-of-a-company-in-liquidation/): What happens to the director of a company in liquidation? Liquidation can be a daunting time for all employees and shareholders - [Plumbers merchant: 100p in the £ CVA Successfully Completed](https://www.briuk.co.uk/plumbers-merchant-100p-in-the-cva-successfully-completed/): Take a look at one of our case studies containing one of many CVA’s that we have successfully completed At BRI Business Recovery & Insolvency - [Bad Business Insolvency Advice From Unregulated Companies](https://www.briuk.co.uk/bad-business-insolvency-advice-from-unregulated-companies/): There are several unregulated companies who are constantly giving bad business insolvency advice. Contact BRI if you require support. - [What Are Your Employee Rights When A Company Closes Down?](https://www.briuk.co.uk/employee-rights-when-a-company-closes-down/): At BRI, we provide legal advice for companies who are facing insolvency. This includes your employee rights when a company closes down. - [The Autumn Budget 2024 – Changes to Capital Gains Tax for Shareholders](https://www.briuk.co.uk/the-autumn-budget-2024-changes-to-capital-gains-tax-for-shareholders/): Since Labour won the general election, it has been rumoured that there could be changes to Capital Gains Tax for shareholders - [Insolvency vs Bankruptcy – What is the Difference?](https://www.briuk.co.uk/insolvency-vs-bankruptcy/): Something we’re often asked by our clients is confusion with the terms insolvency vs bankruptcy. What is the difference between the two? - [The Role Of A BRI Trainee Insolvency Administrator](https://www.briuk.co.uk/the-role-of-a-bri-trainee-insolvency-administrator/): Find out about the role of a trainee insolvency administrator. We work with a variety of clients in different industries. - [Directors and Insolvency: What are a director's responsibilities when a company becomes insolvent?](https://www.briuk.co.uk/directors-and-insolvency-what-are-a-directors-responsibilities-when-a-company-becomes-insolvent/): Directors and insolvency: what are the obligations and duties for a director when the company becomes insolvent? How does the role change? - [New costs of striking off a company](https://www.briuk.co.uk/new-costs-of-striking-off-a-company/): From 1 May 2024, the costs of striking off a limited company has increased to £44 for a paper application and £33 for a digital application - [Bakery Business Rescue: Fresh From The Oven](https://www.briuk.co.uk/bakery-business-rescue-fresh-from-the-oven/): Read our case study to find out how we helped with a bakery business rescue – contact BRI if you require advice around rescue & recovery - [Closing a sole trader business](https://www.briuk.co.uk/closing-a-sole-trade-business/): If you need assistance when it comes to closing a sole trader business or any other financial difficulty, do not hesitate to contact us. - [Avoiding insolvency during difficult times](https://www.briuk.co.uk/avoiding-insolvency-during-difficult-times/): Avoiding insolvency during difficult times can be difficult. There are several current issues which may be contributing to this. - [BRI Charity Day in the Diary!](https://www.briuk.co.uk/bri-charity-day-in-the-diary/): Every year, each of the BRI offices come together & volunteer for a charity day to a local charity, this year it's Buckingham Canal Society - [Debt Relief Orders Overhauled: Spring Budget Offers Hope to Debtors](https://www.briuk.co.uk/debt-relief-orders-overhauled-spring-budget-offers-hope-to-debtors/): Debt Relief Orders (DROs) have undergone significant changes following announcements in the 2024 spring budget. Contact BRI for information - [Surge in Director Bans for Abusing Covid Support Scheme as Alarming Trends are Revealed](https://www.briuk.co.uk/surge-in-director-bans-for-abusing-covid-support-scheme-as-alarming-trends-are-revealed/): The abuse of covid support schemes has been reported many times & cases are still on increasing. This has resulted in directors being banned - [Off-Piste and Lost: Ski and Snowboarding Holiday Companies and Insolvency](https://www.briuk.co.uk/off-piste-and-lost-ski-and-snowboarding-holiday-companies-and-insolvency/): When it comes to holiday companies and insolvency, we are seeing increases in ski and snowboarding companies becoming insolvent in the press - [WHY ARE COMPULSORY LIQUIDATIONS ON THE INCREASE?](https://www.briuk.co.uk/why-are-compulsory-liquidations-on-the-increase/): Why are compulsory liquidations on the increase and what can your company do to avoid this. Contact BRI for full details. - [Insolvency on the increase](https://www.briuk.co.uk/insolvency-on-the-increase/): In the statistics released for the month of December 2023, we can see that insolvency is on the increase. Find out more here. - [How does bankrupt Birmingham impact local businesses?](https://www.briuk.co.uk/how-does-bankrupt-birmingham-impact-local-businesses/): Have you felt the effects of bankrupt Birmingham impact local businesses? Find out more about how this is effecting many organisations. - [Lights! Camera! No Action (!?)](https://www.briuk.co.uk/lights-camera-no-action/): Companies that are connected to the film industry have approached our firm to discuss a lack of new work and cash flows issues - [Directors claims to the Redundancy Payments Service as employees](https://www.briuk.co.uk/directors-claims-to-the-redundancy-payments-service-as-employees/): Guidance has recently been updated by the Redundancy Payments Service to provide greater clarity to Insolvency Practitioners. - [Your best interests at heart](https://www.briuk.co.uk/your-best-interests-at-heart/): BRI received no liquidation fee on this occasion but will go to any length in order to provide the best results for your clients - [Liquidation Vs Dissolution](https://www.briuk.co.uk/liquidation-v-dissolution/): Liquidation Vs Dissolution: if you are closing your company down which will best suit you. Find out more here. - [“Elementary, my dear Watson” or was it?](https://www.briuk.co.uk/elementary-my-dear-watson-or-was-it/): There is now a commonly held misconception that bounce back loan applications could be made and supported based on projected turnover figures - [And the winner is…. Asit Jansari of Pattersons Commercial Law!](https://www.briuk.co.uk/and-the-winner-is-asit-jansari-of-pattersons-commercial-law/): After a number of elite level shots, lucky pots, fouls – John Scott of Lamb & Holmes and Asit Jansari of Pattersons Commercial Law - [Bounce Back Loans – will I be disqualified?](https://www.briuk.co.uk/bounce-back-loans-will-i-be-disqualified/): Most bounce back loans were, hopefully, applied for correctly, used for their proper intended purpose and intended to be being repaid. - [The BRIGS 2022 season draws to a close and Stuart Love of Rollasons Solicitors is the winner!](https://www.briuk.co.uk/the-brigs-2022-season-draws-to-a-close-and-stuart-love-of-rollasons-solicitors-is-the-winner/): The final round of the BRIGS 2022 season was postponed due to weather conditions. Find out more about the 2023 season here - [Any ship, but never a partnership…](https://www.briuk.co.uk/any-ship-but-never-a-partnership/): When working together it's always best to set up a formal partnership before starting anything - and here's why. - [HMRC and their new but old strategy to chase outstanding payments](https://www.briuk.co.uk/hmrc-and-their-new-but-old-strategy-to-chase-outstanding-payments/): 17 January 2023: A lot of enquiries which we take on a day-to-day basis are companies that are struggling financially... - [Retail overview – 2022](https://www.briuk.co.uk/retail-overview-2022/): 11 January 2023: As we move into 2023, we look back on the past year of difficult trading times for... - [Coventry Warwickshire First](https://www.briuk.co.uk/coventry-warwickshire-first/): John Rimmer is Chair of professionals networking group Coventry Warwickshire First. Here he looks back on the whole of 2022 - [Will I still get statutory maternity pay once a company goes into liquidation?](https://www.briuk.co.uk/will-i-still-get-statutory-maternity-pay-once-a-company-goes-into-liquidation/): 21 December 2022: As a company enters liquidation and where employees are made redundant there are usually monies owed to... - [Hark! A trumpet being blown](https://www.briuk.co.uk/hark-a-trumpet-being-blown/): How BRI do not divert from their promise to contacts; to give the right advice first time every time regardless of the fee outcome for us. - [Survey of SME marketplace – of concern for the UK economy?](https://www.briuk.co.uk/survey-of-sme-marketplace-of-concern-for-the-uk-economy/): 21 November 2022: The British Chambers of Commerce (“BCC”) have published their economic survey for the third quarter of 2022... - [Retail is dead](https://www.briuk.co.uk/retail-is-dead/): 15 November 2022: If you have read any press recently you would be led to believe that retail is dead.... - [Attention All Accountants: When are distributable funds no longer distributable?](https://www.briuk.co.uk/attention-all-accountants-when-are-distributable-funds-no-longer-distributable/): When are distributable funds no longer distributable? The answer to that question is not clear cut but a sliding scale - [Everyone has an interest in rates](https://www.briuk.co.uk/everyone-has-an-interest-in-rates/): Interest rates rising are good for savers, bad for borrowers. If your business relies on borrowing to support cash flow, talk to BRI. - [Aggressive creditor](https://www.briuk.co.uk/aggressive-creditor/): We have seen directors being taken to Court for failing to comply with their fiduciary duties in respect of meeting CH filing deadlines. - [LATE PAYMENTS TO SMEs CONTINUING](https://www.briuk.co.uk/late-payments-to-smes-continuing/): Research shows that approximately 30 per cent of payments to small businesses are late which can have a serious adverse impact on cash flow. - [A Hive (down) of activity](https://www.briuk.co.uk/a-hive-down-of-activity/): We are all busy bees here at the BRI hive with enquiries continuing to be received regarding a range of matters. - [Propping up the bar](https://www.briuk.co.uk/propping-up-the-bar/): Concerned over your business’ ability to weather economic conditions while maintaining payments to creditors? Contact BRI for free advice. - [HMRC engagement in CVAs](https://www.briuk.co.uk/hmrc-engagement-in-cvas/): 25 August 2022: A company voluntary arrangement (“CVA”), is generally, an insolvency procedure that tries to help a company recover... - [Any room at the (Hitch)INN?](https://www.briuk.co.uk/any-room-at-the-hitchinn/): We have recently added two new faces to our Hitchin office, those faces belong to Insolvency Practitioner Alastair Fish and Emma Johnson - [Biggest interest rate increase in 27 years](https://www.briuk.co.uk/biggest-interest-rate-increase-in-27-years/): We have seen the biggest interest rate increase in 27 years. The Bank of England has increased interest rates to 1.75% from 1.25%. - [A second helping of struggles please waiter!](https://www.briuk.co.uk/a-second-helping-of-struggles-please-waiter/): 5 August 2022: As we all know, the hospitality sector, including restaurants, was probably hit the hardest financially by Covid-19... - [Are directors benefitting from limited liability?](https://www.briuk.co.uk/are-directors-benefitting-from-limited-liability/): Are directors benefiting from limited liability? Find out more about our industry experience on this topic here. - [What can I do for you today sir?](https://www.briuk.co.uk/what-can-i-do-for-you-today-sir/): Find out about our commitment to always seeking to provide the right advice first time every time regardless of the fee outcome for ourselves - [Plight of the living dead](https://www.briuk.co.uk/plight-of-the-living-dead/): 18 July 2022: Soaring energy bills, issues with supply chains, increased fuel costs and reduced consumer confidence are just some... - [Insolvency figures climb during the second quarter of 2022](https://www.briuk.co.uk/insolvency-figures-climb-during-the-second-quarter-of-2022/): 13 July 2022: As we are now half way through the year, it is reported that the number of corporate... - [BRI Charity Day 2022](https://www.briuk.co.uk/bri-charity-day-2022/): BRI Charity Day 2022: Earlier this month the staff from BRI took part in their first annual charity day since the Coronavirus pandemic - [Howzat for networking!](https://www.briuk.co.uk/howzat-for-networking/): 8 July 2022: In May and June we hosted 2 of the 3 scheduled BRI cricket matches of 2022 at... - [Don’t get in a tizz!](https://www.briuk.co.uk/dont-get-in-a-tizz/): 7 July 2022: Figures released by The Insolvency Service (“TIS”) show that in 2021/22, 801 directors were disqualified under the... - [BRI’s Hitchin office celebrates 10 years and a new addition to the team](https://www.briuk.co.uk/bris-hitchin-office-celebrates-10-years-and-a-new-addition-to-the-team/): BRI’s Hitchin office celebrates 10 years and a new addition to the team. Read the ful story on our website - [Cryptocurrency and insolvency](https://www.briuk.co.uk/cryptocurrency-and-insolvency/): 19 May 2022: After explosive growth over the last few years, an increasing number of companies and businesses are taking... - [Double (double) fault – insolvency service taking action](https://www.briuk.co.uk/double-double-fault-insolvency-service-taking-action/): 11 May 2022: Unless you are particularly averse to current affairs you will have no doubt come across the sorry... - [The Liquidator: Lifting the Veil of Mystery](https://www.briuk.co.uk/the-liquidator-lifting-the-veil-of-mystery/): 6 May 2022: As with many aspects of the insolvency world, the average person will have little if any knowledge... - [Limited Liability – Trapped Directors](https://www.briuk.co.uk/limited-liability-trapped-directors/): 27 April 2022: A limited company gives owner managers/ directors protection from the business liabilities of a company. Sole traders/... - [I can’t repay my bounce back loan…](https://www.briuk.co.uk/i-cant-repay-my-bounce-back-loan/): ... is one of the most common client problems we hear at the minute. 20 April 2022: The availability and... - [Die? That’s the last thing I’ll do!](https://www.briuk.co.uk/die-thats-the-last-thing-ill-do/): 13 April 2022: Being a director of a small company, especially where you are the sole director, can be a... - [The Rocky Road to Recovery](https://www.briuk.co.uk/the-rocky-road-to-recovery/): 6 April 2022: Among a number of Government measures aimed at mitigating against the economic damage caused by COVID-19 lockdowns,... - [Now you see it…](https://www.briuk.co.uk/now-you-see-it/): 22 March 2022: If you have a key piece of plant or machinery and it is stolen or damaged, what... - [The Challenges of a CVL Process; an inside view](https://www.briuk.co.uk/the-challenges-of-a-cvl-process-an-inside-view/): 17 March 2022: A Creditors’ Voluntary Liquidation (CVL) is a very technical process which requires a high level of expertise... - [Can directors claim for redundancy?](https://www.briuk.co.uk/can-directors-claim-for-redundancy/): 10 March 2022: A common question we are asked by directors when advising on a company’s options is whether they... - [B.R.I.N.G the Action in 2022!](https://www.briuk.co.uk/b-r-i-n-g-the-action-in-2022/): If you want to get involved and B.R.I.N.G the Action this year, please get in touch - we're looking forward to hearing from you - [You won’t get away with it!](https://www.briuk.co.uk/you-wont-get-away-with-it/): 2 March 2022: Director bans are being issued by the Insolvency Service for the misuse of the Bounce Back Loans... - [Director’s personal guarantees – what do they mean and how might they affect you?](https://www.briuk.co.uk/directors-personal-guarantees-what-do-they-mean-and-how-might-they-affect-you/): 17 February 2022: A personal guarantee is an agreement that holds a company’s director(s) personally liable if the business is... - [Rogue director disqualified for 15 years for being a fake Insolvency Practitioner](https://www.briuk.co.uk/rogue-director-disqualified-for-15-years-for-being-a-fake-insolvency-practitioner/): 10 February 2022: Yes, you have read that right. The shadow director of a company posing as an ‘unlicensed insolvency... - [BRIGS is back!](https://www.briuk.co.uk/brigs-is-back/): 2 February 2022: The first BRI Golf Society (BRIGS) of 2022 started this morning at Kettering Golf Club and marks... - [Inflation – what is it and how can it affect my business?](https://www.briuk.co.uk/inflation-what-is-it-and-how-can-it-affect-my-business/): 24 January 2022: Inflation is the rate at which prices are rising. As of December 2021, the rate of inflation... - [Look before you leap](https://www.briuk.co.uk/look-before-you-leap/): 17 January 2022: Prospective new clients are often surprised when we tell them that they don’t, or shouldn’t, want our... - [Warning for directors of dissolved companies and those proposing dissolution](https://www.briuk.co.uk/warning-for-directors-of-dissolved-companies-and-those-proposing-dissolution/): 10 January 2022: The Insolvency Service have had the power to investigate the conduct of directors of insolvent companies that... - [Changes to company strike off processes](https://www.briuk.co.uk/changes-to-company-strike-off-processes/): Strike off processes - find out what your options are and talk to the experts at BRI for honest advice that is right for you. - [Making Your Members’ Voluntary Liquidation Go Smoothly](https://www.briuk.co.uk/making-your-members-voluntary-liquidation-go-smoothly/): 2 December 2021: At BRI, we pride ourselves on giving excellent, attentive service to all of our clients and endeavour... - [Bailiffs at the door (sorry, that should read ‘Enforcement Officer’)](https://www.briuk.co.uk/bailiffs-at-the-door-sorry-that-should-read-enforcement-officer/): With Government interventions introduced during the pandemic, we have noticed a number of instances of debt enforcement action recently. - [Directors automatically liable for company debts when using a prohibited company name](https://www.briuk.co.uk/directors-automatically-liable-for-company-debts-when-using-a-prohibited-company-name/): 16 November 2021: In a recent decision, the court held that where a director is in breach of the rules... - [Crippling Debt](https://www.briuk.co.uk/crippling-debt/): It was reported that UK corporate debt went up £1.9tn to £6.6tn in 2020. It was also reported that the vast amount of debt is irrecoverable. - [More Bounce Back Loans misused; more directors banned](https://www.briuk.co.uk/more-bounce-back-loans-misused-more-directors-banned/): 4 November 2021: The Insolvency Service is continuing their investigations into companies that have either misused or inappropriately applied for... - [Has HMRC lost its bite?](https://www.briuk.co.uk/has-hmrc-lost-its-bite/): HMRC are not actively petitioning for companies to be wound up and are encouraging those with debt to get in touch and discuss the situation - [Building on quicksand](https://www.briuk.co.uk/building-on-quicksand/): 15 October 2021: The construction industry is awash with small companies that are destined to fail. The power of main... - [Company Voluntary Arrangement (“CVA”) continues to produce return](https://www.briuk.co.uk/company-voluntary-arrangement-cva-continues-to-produce-return/): 7 October 2021: Over the last 18 months or so we have provided various updates on a CVA that is... - [Gloomy weather is back and so is VAT for restaurants and pubs.](https://www.briuk.co.uk/gloomy-weather-is-back-and-so-is-vat-for-restaurants-and-pubs/): If you need assistance in long-term recovery planning and would like to explore options, contact any one of BRI’s experienced management team. - [The end of the furlough scheme](https://www.briuk.co.uk/the-end-of-the-furlough-scheme/): 21 September 2021: The government has started the process of winding up its Coronavirus Job Retention Scheme, otherwise known as... - [End of Temporary Insolvency Restriction Protections: Will we see an influx of winding up petitions?](https://www.briuk.co.uk/end-of-temporary-insolvency-restriction-protections-will-we-see-an-influx-of-winding-up-petitions/): Whether you want someone wound up or are under threat of a winding up petition, BRI offer a free consultation. - [Seeking early advice is crucial, even more so now given the final month of furlough.](https://www.briuk.co.uk/seeking-early-advice-is-crucial-even-more-so-now-given-the-final-month-of-furlough/): 1 September 2021: At BRI Business Recovery and Insolvency we always recommend, when a company is experiencing financial difficulty, the... - [Time’s up](https://www.briuk.co.uk/times-up/): 26 August 2021: There has been a lot that businesses have had to grapple with, going in and out of... - [Bounce Back Loan Scheme abuse – tales from the shop floor](https://www.briuk.co.uk/bounce-back-loan-scheme-abuse-tales-from-the-shop-floor/): 18 August 2021: We are seeing an increase in enquiries related to the Bounce Back Loan Scheme (BBLS) now that... - [He takes all the prizes…](https://www.briuk.co.uk/he-takes-all-the-prizes/): 13 August 2021: James Robinson taking home all the prizes at BRI Golf Society (BRIGS) this week! Flying the Hawsons... - [Suspension of Wrongful Trading Provisions is Over](https://www.briuk.co.uk/suspension-of-wrongful-trading-provisions-is-over/): 12 August 2021: The above is not the snappiest of headlines but it does rather get to the point. Although... - [Will “Freedom Day” be the boost SMEs need?](https://www.briuk.co.uk/will-freedom-day-be-the-boost-smes-need/): 3 August 2021: As many of us now begin to get used to experiencing life somewhat as it was pre-pandemic,... - [All ‘Zzz’oomed Out?](https://www.briuk.co.uk/all-zzzoomed-out/): 22 July 2021: On 19 July 2021, BRI safely welcomed back the team to their offices and, for some, it... - [Though it May Feel Like the End of the World…](https://www.briuk.co.uk/though-it-may-feel-like-the-end-of-the-world/): 13 July 2021: ... don’t worry, it isn’t. The collective groan of (an estimated) 40 million people could be heard... - [Only fools rush in…](https://www.briuk.co.uk/only-fools-rush-in/): Creditors’ voluntary liquidation (CVL): gain advice from the experts at Business Recovery & Insolvency, for the best possible outcome. - [15 years? Really?](https://www.briuk.co.uk/15-years-really/): 2 July 2021: Whilst working from home, the BRI MK, Hitchin and Spalding teams decided to set up some team... - [Safe as houses II](https://www.briuk.co.uk/safe-as-houses-ii/): 29 June 2021: In a recent article we told the tale of a company, formed in 1966, which, through its... - [BRI Winners Golf Day](https://www.briuk.co.uk/bri-winners-golf-day/): A great finish for the BRI Winners Golf Day yesterday with outstanding weather at Staverton Park Golf Club - find out more here - [Money back into the pockets of creditors](https://www.briuk.co.uk/money-back-into-the-pockets-of-creditors/): 18 June 2021: Following the liquidation of a company providing supplies to the automotive sector, we successfully negotiated and concluded... - [A good outcome despite liquidation, cobblers! Well yes, indeed they were.](https://www.briuk.co.uk/a-good-outcome-despite-liquidation-cobblers-well-yes-indeed-they-were/): 14 June 2021: A recent appointment in our Milton Keynes office involved the liquidation of a very well established Northamptonshire... - [Golf Days: And the final 9 are …](https://www.briuk.co.uk/and-the-final-9-are/): A fantastic day at our 3 golf days yesterday; plenty of sunshine, ‘normal’ face-to-face networking and an array of lost golf balls. - [Safe as houses?](https://www.briuk.co.uk/safe-as-houses/): If you are concerned about your role as a director or about the conduct of directors you are currently dealing with, please contact BRI. - [Building firms facing financial pressure due to shortage of supplies and rising costs](https://www.briuk.co.uk/building-firms-facing-financial-pressure-due-to-shortage-of-supplies-and-rising-costs/): 28 May 2021: During lockdown many saved and embarked on DIY and home improvement projects. This unprecedented demand is now... - [CVA battles between landlords and retailers continue](https://www.briuk.co.uk/cva-battles-between-landlords-and-retailers-continue/): 20 May 2021: Over the past couple of years any mention of a company voluntary arrangement (CVA) in the national... - [Important insolvency legislation changes: Directors of dissolved companies can be investigated by the Insolvency Service.](https://www.briuk.co.uk/important-insolvency-legislation-changes-directors-of-dissolved-companies-can-be-investigated-by-the-insolvency-service/): 17 May 2021: There are two terminal procedures for companies looking to formally close down; liquidation and strike off (dissolution).... - [Three new directors for BRI Business Recovery and Insolvency](https://www.briuk.co.uk/three-new-directors-for-bri-business-recovery-and-insolvency/): 10 May 2021: We are pleased to announce that Lauren Auburn, Tom Guthrie and John Rimmer, all Insolvency Practitioners (IPs),... - [Directors – Your Lines of Duty](https://www.briuk.co.uk/directors-your-lines-of-duty/): 5 May 2021: You may be one of the 12. 8million people who recently tuned into the final episode of... - [Informal agreements – a win:win solution?](https://www.briuk.co.uk/informal-agreements-a-winwin-solution/): 4 May 2021: Whilst it is widely anticipated that corporate insolvencies will rise in the coming months, we are seeing... - [How much more personal investment will I need to survive during and after the pandemic?](https://www.briuk.co.uk/how-much-more-personal-investment-will-i-need-to-survive-during-and-after-the-pandemic/): 27 April 2021: Many business owners have taken drastic steps during the pandemic to support their business and a new... - [Has the pandemic changed our spending habits?](https://www.briuk.co.uk/has-the-pandemic-changed-our-spending-habits/): 22 April 2021: With the shops and business now back open, it appears that people have been flocking back to... - [Substantial dividend paid out – six months after appointment](https://www.briuk.co.uk/substantial-dividend-paid-out-six-months-after-appointment/): 19 April 2021: BRI were appointed Liquidators in an insolvent matter in September 2020 and, in an effort to maximise... - [Brave New (almost-post-Covid) World](https://www.briuk.co.uk/brave-new-almost-post-covid-world/): 14 April 2021: With many businesses re-opening as per the Government road map, no doubt many owners will be reviewing... - [Temporary Corporate Insolvency Provisions extended again](https://www.briuk.co.uk/temporary-corporate-insolvency-provisions-extended-again/): A snapshot of the extension of the temporary measures provided for in the Corporate Insolvency and Governance Act 2020. - [Are we old fashioned?](https://www.briuk.co.uk/are-we-old-fashioned/): 30 March 2021: The oldest form of communication is verbal communication; speaking to one another in a factual or story... - [Coming out the other side](https://www.briuk.co.uk/coming-out-the-other-side/): 26 March 2021: People think that the insolvency side of our business is busier during a recession. They also assume... - [Business optimism has increased since the roll-out of the vaccines in response to Covid-19](https://www.briuk.co.uk/business-optimism-has-increased-since-the-roll-out-of-the-vaccines-in-response-to-covid-19/): 23 March 2021: Statistics showed that 69% of firms expect an increase in business activity and that trading levels will... - [Help for the High Street](https://www.briuk.co.uk/help-for-the-high-street/): 18 March 2021: As the nation takes tentative first steps towards coming out of this most recent lockdown, questions are... - [2nd Class Preference Claims – 3 months on](https://www.briuk.co.uk/2nd-class-preference-claims-3-months-on/): 16 March 2021: Given the seismic events of 2020 and the myriad of initiatives introduced by the Government last year... - [The King is Dead - Long Live the King](https://www.briuk.co.uk/the-king-is-dead-long-live-the-king/): 10 March 2021: Another budget has come and gone; another flurry of solvent liquidations (Members Voluntary Liquidations or “MVL”) preceded... - [Breathing Space and Best Advice](https://www.briuk.co.uk/breathing-space-and-best-advice/): 4 March 2021: With the introduction of a new “breathing space” regime for individuals with debt related issues about to... - [Just in time…](https://www.briuk.co.uk/just-in-time/): 2 March 2021: A director was urged to contact BRI’s Northampton office to discuss his options. It took the director... - [Roadmap to recovery](https://www.briuk.co.uk/roadmap-to-recovery/): 23 February 2021: Boris Johnson yesterday announced a four step roadmap out of lockdown and, even though the light at... - [Have Last Orders Been Extended?](https://www.briuk.co.uk/have-last-orders-been-extended/): 17 February 2021: As the UK is slowly approaching 12 months of lockdowns, tiers and restrictions it is fair to... - [Pay As You Grow (“PAYG”)](https://www.briuk.co.uk/pay-as-you-grow-payg/): 11 February 2021: As the country was plunged into lockdown in early 2020, one of the support packages available to... - [Annual corporate insolvency statistics 2020](https://www.briuk.co.uk/annual-corporate-insolvency-statistics-2020/): 3 February 2021: The statistics published on 29 January 2021 show a fall of 27% in corporate insolvencies in 2020... - [Changes to strengthen the Prompt Payment Code](https://www.briuk.co.uk/changes-to-strengthen-the-prompt-payment-code/): 25 January 2021: In most industries the big players can sometimes exert undue influence over their smaller suppliers by withholding... - [A life-line for small businesses](https://www.briuk.co.uk/a-life-line-for-small-businesses/): 19 January 2021: On 15 January 2021, in a landmark ruling, the Supreme Court ruled small businesses could receive Covid... - [What I did in my holidays – my first year at BRI](https://www.briuk.co.uk/what-i-did-in-my-holidays-my-first-year-at-bri/): 19 January 2021: Well... . it has been interesting to say the least! I joined BRI in December 2019 as... - [Hang in there…](https://www.briuk.co.uk/hang-in-there/): BRI continue to help businesses weigh up their options and look at survival opportunities. Contact us for a free and confidential chat. - [BRIGS 2020 winner: Paul Currie of DFA Law](https://www.briuk.co.uk/brigs-2020-winner-paul-currie-of-dfa-law/): BRIGS 2020 winner - We have pleasure in congratulating Paul Currie of DFA Law who was crowned BRIGS champion for 2020. - [Alternative recovery options for distressed businesses](https://www.briuk.co.uk/alternative-recovery-options-for-distressed-businesses-3/): 14 December 2020: Any year end naval gazing is being avoided in this December article to instead focus on the... - [Last Orders](https://www.briuk.co.uk/last-orders/): 9 December 2020: For many publicans, restaurateurs and others in the hospitality industry last orders might be about to be... - [Festive Period like no other](https://www.briuk.co.uk/festive-period-like-no-other/): 2 December 2020: In normal circumstances around this time of year one might be dreaming of a white Christmas or... - [Substantial return to creditors – what great news!](https://www.briuk.co.uk/substantial-return-to-creditors-what-great-news/): 25 November 2020: When appointed as liquidators of an insolvent company, we make every possible effort to achieve the maximum... - [Local Authorities budgets stretched to bursting](https://www.briuk.co.uk/local-authorities-budgets-stretched-to-bursting/): Local authorities find themselves under financial pressure like they may never have felt before. Talk to BRI about insolvency matters. - [CVA? Administration? Maybe just a letter and a nice chat.](https://www.briuk.co.uk/cva-administration-maybe-just-a-letter-and-a-nice-chat/): 12 November 2020: Forgive us for beginning this article by repeating a point made many times before but the formal... - [All change but our advice remains the same – contact BRI early](https://www.briuk.co.uk/all-change-but-our-advice-remains-the-same-contact-bri-early/): 3 November 2020: The initial draft of this article was written when it was anticipated that the end of a... - [Is the tier system leading to more Zombie companies?](https://www.briuk.co.uk/is-the-tier-system-leading-to-more-zombie-companies/): 28 October 2020: Since tighter coronavirus restrictions were introduced with the three tier system, more and more companies with little... - [Record borrowing outside of world wars](https://www.briuk.co.uk/record-borrowing-outside-of-world-wars/): If your business is facing uncertain times and you need to discuss plan A, B, C, D… then we’re here to help. - [Helping our communities](https://www.briuk.co.uk/helping-our-communities/): 14 October 2020: Every year here at BRI we bring our offices together for a charity day, whereby a day... - [Further substantial payment to HMRC](https://www.briuk.co.uk/further-substantial-payment-to-hmrc/): 8 October 2020: We posted in March on this particular matter whereby £250,000 was paid to HMRC in respect of... - [Covid-19 wiping out fashion](https://www.briuk.co.uk/covid-19-wiping-out-fashion/): 6 October 2020: Lockdown has knocked the fashion industry off its pedestal. Not only have shops and factories closed but... - [More High Street restructurings](https://www.briuk.co.uk/more-high-street-restructurings/): 1 October 2020: Cote Brasserie is the latest name on the High Street to undertake a formal insolvency process in... - [BRI Golf Day – The Finals](https://www.briuk.co.uk/bri-golf-day-the-finals/): 24 September 2020: Yesterday we hosted a special event for the top 3 individual scorers from each of our regional... - [Budgeting Time for the Budget](https://www.briuk.co.uk/budgeting-time-for-the-budget/): 17 September 2020: Due to the unprecedented events of 2020 the Autumn budget may arrive later than usual, and according... - [Recovery…](https://www.briuk.co.uk/recovery/): 26 August 2020: Whilst good news was recently announced from Virgin Atlantic, many small businesses also face challenges whilst they... - [What happens to a limited company when the sole shareholder/director dies?](https://www.briuk.co.uk/what-happens-to-a-limited-company-when-the-sole-shareholder-director-dies/): 23 August 2018: The limited company is a legal entity and the shares will vest in the deceased’s estate. The... - [Can your landlord take your assets in lieu of rent?](https://www.briuk.co.uk/can-your-landlord-take-your-assets-in-lieu-of-rent/): If you are a tenant with unpaid rents or a landlord with uncollected rents and wish to talk about your options, please do get in touch. - [Clearance from HMRC in Solvent Liquidations](https://www.briuk.co.uk/clearance-from-hmrc-in-solvent-liquidations/): It's too risky to close our file in a matter whereby we're the liquidators without obtaining clearance from HMRC in solvent liquidations --- # # Detailed Content ## Pages ### Corporate Social Responsibility Policy > At BRI Business Recovery and Insolvency (BRI), we are committed to conducting our business in a socially responsible and ethical manner. - Published: 2024-11-19 - Modified: 2024-11-19 - URL: https://www.briuk.co.uk/corporate-social-responsibility-policy/ Company Names: BRI and BRI Business Recovery and Insolvency (trading names of BRI (UK) Limited, BRI (Coventry) Limited, BRI (Milton Keynes) Limited and BRI (Northampton) Limited). Effective Date: November 2024 1. Introduction At BRI Business Recovery and Insolvency (BRI), we are committed to conducting our business in a socially responsible and ethical manner. Our Corporate Social Responsibility (CSR) policy reflects our values and defines our commitment to provide quality service in a manner that ensure a safe working environment for our employees and we try to minimise our potential impact on the environment. 2. Purpose The purpose of this CSR policy is to: Provide a framework for responsible business practices. Enhance our positive impact on the community and environment. Ensure compliance with legal and ethical standards. 3. Scope This policy applies to all employees, management, and stakeholders of BRI. It encompasses our operations, interactions with clients, potential clients and engagements with the wider community. 4. Core Principles Ethical Practices We commit to conducting our business with integrity and transparency. Our operations will comply with all relevant laws and regulations. None of our employees are asked to meet any financial targets. Our employees are encouraged to provide the right advice to all clients or prospective clients irrelevant of the fee outcome for BRI. Employee Welfare We value our employees and are committed to: Providing a safe, inclusive, and healthy work environment. Offering opportunities for professional development and career growth. Promoting a culture of respect, diversity, and fairness. Communicating openly and clearly... --- ### Email Sign Off > By accessing the Website, you agree that this Cookie Policy will apply whenever you access the Website on any device. - Published: 2023-12-19 - Modified: 2023-12-19 - URL: https://www.briuk.co.uk/signoff/ BRI Business Recovery and Insolvency This information is intended only for the person or entity to which it is addressed. It may contain confidential and/or privileged information and any review, retransmission, dissemination or other use of, or taking any action in reliance thereon, by persons or entities other than those for which it is intended is prohibited. If you receive this information in error please delete the material from any computer and contact the sender. All our computers have virus-checking software but we are unable to guarantee the safety of any of our e-mails due to the constant release of new viruses. Therefore we cannot accept responsibility for any such viruses, which may be inadvertently sent to you in any of our e-mails. "BRI" and "BRI Business Recovery and Insolvency" are trading names of BRI (UK) Ltd, BRI (Northampton) Ltd, BRI (Coventry) Ltd & BRI (Milton Keynes) Ltd whose registered numbers are 04130230, 04682072, 04682073 & 04682077 respectively. Registered office addresses are all 100 St James Road, Northampton, NN5 5LF. All formal insolvency appointments are personal and in the name(s) of L L Auburn, T E Guthrie & J W Rimmer who are all licensed to act as insolvency practitioners in the UK by the Insolvency Practitioners Association. GDPR: A copy of BRI’s privacy notice can be found at www. briuk. co. uk/privacy-notice --- ### Golf League Table > BRI host a monthly golf society (“BRIGS”) in Northampton for our professional contacts on a number of different golf courses in the area. - Published: 2023-12-05 - Modified: 2024-12-12 - URL: https://www.briuk.co.uk/golf-league/ Golf League Table 2024 Download the latest results here BRI host a monthly golf society (“BRIGS”) in Northampton for our professional contacts on a number of different golf courses in the area. The monthly results are posted to this page. BRIGS is open to all levels and abilities and we welcome anyone to take part. Each monthly winner receives a bottle of wine and, most importantly, a large and thoroughly deserved amount of respect from the rest of the BRIGS members. A sleeve of golf balls is also given to the winner of the nearest the pin. If you would like to know more about these events or know someone that is interested in joining, please email Bob McDonald on rmcdonald@briuk. co. uk. https://www. youtube. com/watch? v=crRtGjGaG8Y --- ### Provision of Services Regulations Summary Sheet for BRI Business Recovery and Insolvency > The following information is for interested parties on the information required to be disclosed by the Provision of Services Regulations 2009. - Published: 2023-07-06 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/provision-of-services/ The following information is designed to draw the attention of interested parties to the information required to be disclosed by the Provision of Services Regulations 2009. BRI Business Recovery and Insolvency “BRI” and “BRI Business Recovery and Insolvency” are trading names of BRI (UK) Ltd, BRI (Northampton) Ltd, BRI (Coventry) Ltd and BRI (Milton Keynes) Ltd whose registered numbers are 04130230, 04682072, 04682073 and 04682077 respectively. Registered office addresses are all 100 St James Road, Northampton, NN5 5LF. Licensing Body L L Auburn, T E Guthrie and J W Rimmer are licensed to act as Insolvency Practitioners in the United Kingdom by the Insolvency Practitioners Association. Rules Governing Actions All IPs are bound by the rules of their professional body, including any that relate specifically to insolvency. The rules of the professional body that licences BRI Business Recovery and Insolvency’s IPs can be found at https://insolvency-practitioners. org. uk/regulation-and-guidance/. In addition, IPs are bound by the Statements of Insolvency Practice (SIPs), details of which can be found at https://www. r3. org. uk/technical-library/england-wales/sips/. Ethics All IPs are required to comply with the Insolvency Code of Ethics and a copy of the Code can be found at https://insolvency-practitioners. org. uk/regulation-and-guidance/. Complaints At BRI Business Recovery and Insolvency we always strive to provide a professional and efficient service. However, we recognise that it is in the nature of insolvency proceedings for disputes to arise from time to time. As such, should you have any comments or complaints regarding the administration of a particular case... --- ### Briefings > If BRI do not have a briefing covering an issue then a member of the team will happily answer that query and consider adding the answer. - Published: 2023-06-09 - Modified: 2025-06-03 - URL: https://www.briuk.co.uk/briefings/ Latest Briefings Ignorance is bliss... but it is no defence - June 2025 The foundations of a successful Members' Voluntary Liquidation - August 2024 Taxing Times - Dealing with a more litigious HMRC - June 2024 Produced regularly throughout the year by BRI Summarises changes to the insolvency legislation and issues that are of general interest to professional advisers If you do not receive these briefings and would like to be added to BRI’s mailing list please contact Julie Foster on 01604 754352 or e-mail on jfoster@briuk. co. uk Previously published technical briefings are available on request If BRI do not have a briefing covering an issue then a member of the team will happily answer that query and consider adding the answer to the company’s existing range of briefings https://www. youtube. com/watch? v=crRtGjGaG8Y --- ### Sitemap > Full sitemap of BRI Business Recovery and Insolvency UK. Contact us for more details on how we can help your business. - Published: 2023-05-31 - Modified: 2024-04-16 - URL: https://www.briuk.co.uk/sitemap/ --- ### Debt Relief Order > A debt relief order is like a mini bankruptcy and is a way for individuals to deal with debts they cannot pay. - Published: 2023-04-13 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/services/personal-insolvency/debt-relief-order/ A Debt Relief Order is a way for individuals to deal with debts they cannot pay A debt relief order is like a mini bankruptcy. It is a way for individuals to deal with debts they cannot pay and allows them to make a fresh start free from debt. A debt relief order has the same restrictions and terms as bankruptcy but is available where the following applies: you owe £30,000 or less you have less than £75 to spend each month, after paying tax, national insurance and normal household expenses you lived or worked in England or Wales in the last 3 years your assets aren’t worth more than £2,000 in total you’ve not had a debt relief order in the last 6 years A debt relief order ends after 12 months, restrictions are lifted and the individual is released from their debts at this time. The restrictions in place include, but are not limited to, being unable to obtain credit of more than £500 without disclosing they are subject to a debt relief order and being unable to be a director of a limited company. Anyone subject to a debt relief order is still allowed to operate a bank account, run a business (but not a limited company), own a car (subject to financial limits and if required for work purposes) and earn a living. Contact us if you would like further information and assistance regarding debt relief orders. There is no charge for doing so and it is without obligation. --- ### Individual Voluntary Arrangement > An individual voluntary arrangement (‘IVA’) is a legally binding agreement between an individual and their creditors to repay them - Published: 2023-04-13 - Modified: 2025-03-26 - URL: https://www.briuk.co.uk/services/personal-insolvency/individual-voluntary-arrangement/ An individual voluntary arrangement (‘IVA’) is a legally binding agreement between an individual and their creditors to repay them At BRI Business Recovery and Insolvency, we work with both companies and individuals helping them navigate what can be a daunting and uncertain path through insolvency. One of the areas we can help with is Individual Voluntary Arrangements. What is an Individual Voluntary Arrangement? An individual voluntary arrangement (‘IVA’) is a legally binding agreement between an individual and their creditors to repay them in full or in part and over a period of time, usually up to 5 years. An individual voluntary arrangement often includes a realisation of assets and/or regular monthly contributions of surplus income and/or a third party contribution that would otherwise be unavailable in the alternative (bankruptcy). If you need support when it comes to IVA, contact our team today. What Happens During an IVA? During an Individual Voluntary Arrangement, unsecured creditors vote on whether or not to accept the proposals for repayment and at least 75% of unsecured creditors, based on value of debt, need to vote in favour in order for it to be approved. Once approved it is legally binding on all unsecured creditors and they cannot take further recovery action in relation to their debt. Where HM Revenue and Customs are a creditor, they have a specialist team that review proposals to ascertain whether they believe that the proposal is the best offer that can be made by the individual and that it has a realistic chance of success. This determines how HMRC will vote in the arrangement and is often crucial to... --- ### Partnership Administration Order > The court will only grant the Partnership Administration Order where it is satisfied that the partnership is unable to pay its debts - Published: 2023-04-13 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/services/personal-insolvency/partnership-administration-order/ When a partnership encounters financial difficulty it can be put into administration When a partnership encounters financial difficulty, it can be put into administration by the partners or a creditor. This is called a Partnership Administration Order, or ‘PAO’. At BRI Business Recovery and Insolvency, we are a committed team of experienced professionals and insolvency practitioners and can help you and your partnership when it comes to PAOs. Contact our dedicated team for more information. About Partnership Administration Orders The court will only grant the Partnership Administration Order where it is satisfied that the partnership is unable to pay its debts and where one of the following can be achieved: The rescue of the partnership as a going concern The agreement to a Partnership Voluntary Arrangement (‘PVA’) under which the debt can be restructured To provide a better return to creditors than would be possible via a winding up/liquidation When the PAO is Granted Where a partnership administration order is granted, an administrator – such as BRI Business Recovery and Insolvency- is appointed who takes control of the affairs of the business. Creditor action to recover debts from the partnership are prevented so as to protect the business from any harm whilst in administration. The administrator works with the partnership to achieve a rescue or restructure so that the business can be handed back to the partners or to achieve one of the other two purposes of the Partnership Administration Order. When is a Partnership Administration Order the Best Choice When it comes to financial distress and potential administration in any business,... --- ### Bankruptcy > Bankruptcy is a way for individuals to deal with debts they cannot pay. It allows individuals make a fresh start free from debt. - Published: 2023-04-13 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/services/personal-insolvency/bankruptcy/ Bankruptcy is a way for individuals to deal with debts they cannot pay Bankruptcy is a way for individuals to deal with debts they cannot pay. It allows individuals make a fresh start free from debt. Someone who is adjudged bankrupt has the Official Receiver appointed as their trustee in bankruptcy. The trustee’s role if to realise their assets and distribute them between the creditors. A bankrupt is automatically discharged from bankruptcy after 12 months unless restrictions are extended. Restrictions include, but are not limited to, being unable to obtain credit of more than £500 without disclosing they are an undischarged bankrupt, being unable to be a director of a limited company and having to disclose your income and expenses to the trustee to ascertain whether an income payments agreement can be setup. As a bankrupt you are still allowed to operate a bank account, run a business (but not a limited company), own a car (subject to financial limits and if required for work purposes) and earn a living. Bankruptcy often has much wider implications where there is a family home and dependent children living there. Bankruptcy can be quite stressful and daunting for those that have no experience of it. Contact us if you would like further information and assistance regarding bankruptcy. There is no charge for doing so and it is without obligation. --- ### Insolvency > We are an established insolvency practice committed to finding the right solutions for businesses and individuals in financial difficulty. - Published: 2023-04-11 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/services/insolvency/ We are an established and trusted business rescue and insolvency practice committed to finding the right solutions for businesses and individuals in financial difficulty. Section 123 of the Insolvency Act 1986 defines insolvency in two ways. Firstly, being unable to pay your debts as and when they fall due. Secondly, if your assets are worth less than the value of your liabilities. At BRI we are dedicated to helping our clients through insolvency and to find the right solution for them and their situation. Insolvency is split into 2 areas: company insolvency and personal insolvency. Company insolvency is when a company or business can’t pay its debts and personal insolvency is when an individual can’t pay their debts. Often there is an overlap of the two, for example, if an organisation is suffering from company insolvency and cannot pay its debts, this then has a negative impact on the directors’ income and personal liabilities which could lead to personal insolvency such as bankruptcy. Our mix of strategies, to deal with the difficulties you are experiencing, will depend on whether you need company insolvency advice, personal insolvency advice or both. We are able to provide tailored help and advice, for your organisation if you are facing possible insolvency. We can help you to find the best possible solution for you and your business. By listening to and understanding the problems you are facing, we can often provide solutions that may not require a formal insolvency procedure. This could involve assisting you with negotiating with creditors, speaking with HMRC or helping to avoid compulsory winding up. It could be as simple as helping to put you... --- ### Corporate FAQs > Our Corporate FAQs include general information and should not be taken asa comprehensive statement of law. - Published: 2023-03-20 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/services/corporate-insolvency/corporate-faqs/ Yes. You can invite creditors to wind you up or have the company struck off insolvently in certain circumstances. Not always. If the company has no assets and has ceased trading you can wind your company up. However, you will not be able to have it struck off at Companies House until it has been into liquidation or another insolvency procedure first. Not being able to pay your employees is a horrible situation for a business owner. If you’re experiencing a cash flow shortage, you must determine whether it is short-term or if the problem is likely to have long-term repercussions. If you feel it is more short-term, there are a few options. As difficult as it might be you could ask staff to wait for some or all payment or if you feel the company is in real difficulty, you can apply for a loan which should be a short-term solution. If you feel it is long-term, you need to assess your business model to ensure the company can find the best solution moving forward. It is never too early to contact us. Early planning helps to avoid pitfalls and may expand the range of options available to your company due to having more time. Clients often say that they wish they would have spoken to us sooner. Yes. We can often help to adjourn or dismiss the petition so that we can discuss your options and find a solution for you. Yes. You should speak to an insolvency... --- ### Cookie Policy > By accessing the Website, you agree that this Cookie Policy will apply whenever you access the Website on any device. - Published: 2023-03-14 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/cookie-policy/ Like most websites, this one uses cookies. Cookies are small text files stored on your computer by your browser. They’re used for many things, such as remembering whether you’ve visited the site before, so that you remain logged in – or to help us work out how many new website visitors we get each month. They contain information about the use of your computer but don’t include personal information about you (they don’t store your name, for instance). This policy explains how cookies are used on this website in general – and, below, how you can control the cookies that may be used on this site. About this Cookie policy This Cookie Policy applies to this website (“the Website”). By accessing the Website, you agree that this Cookie Policy will apply whenever you access the Website on any device. Any changes to this policy will be posted here. We reserve the right to vary this Cookie Policy from time to time and such changes shall become effective as soon as they are posted. Your continued use of the Website constitutes your agreement to all such changes. Our use of cookies We may collect information automatically when you visit the Website, using cookies. The cookies allow us to identify your computer and find out details about your last visit. You can choose, below, not to allow cookies. If you do, we can’t guarantee that your experience with the Website will be as good as if you do allow cookies. The information... --- ### Creditor / Member Information > We're an independent firm of insolvency practitioners that finds the right solutions for businesses & individuals in financial difficulty. - Published: 2023-03-14 - Modified: 2025-06-02 - URL: https://www.briuk.co.uk/services/creditor-member-information/ We are an independent firm of insolvency practitioners committed to finding the right solutions for businesses and individuals in financial difficulty. Voluntary Arrangement Administration Bankruptcy Liquidation Charge Out Rates Current Charge Out Rates Previous Charge Out Rates Privacy Policy Liquidation Provision of services regulations summary sheet --- ### Members’ Voluntary Liquidation > Once a company is in a position to enter Members Voluntary Liquidation, the following steps need to take place to ensure smooth transition. - Published: 2023-03-13 - Modified: 2024-07-09 - URL: https://www.briuk.co.uk/services/members-voluntary-liquidation/ We are an established and trusted business rescue and insolvency practice committed to finding the right solutions for businesses and individuals in financial difficulty. Members Voluntary Liquidation (MVL) is a formal process of closing a solvent company. If you are considering a members' voluntary liquidation for your company, we would recommend seeking advice from your tax advisers and BRI Business Recovery and Insolvency. Contact BRI Business Recovery and Insolvency for a free, no obligation discussion about your specific circumstances. Once a successful company has come to the end of its useful life and wishes to cease trading a Members Voluntary Liquidation is a common formal process used to close the business. This process often provides the most tax efficient way for shareholders to receive the surplus of cash and/or assets remaining in the business (after all liabilities have been paid). The reason an MVL is often the most tax efficient process for shareholders of solvent companies is due to them being entitled to receive Business Asset Disposal Relief (formerly known as Entrepreneur's Relief). Business Asset Disposal Relief provides a far more generous taxable rate than standard dividends made in the ordinary course of business. Directors or shareholders who are approaching retirement would generally benefit from an MVL – this is what we ordinarily see. These directors and shareholders are looking to extract their long-term successful investment from their company. This could be cash that has built up over time or a sale of the trade and goodwill that has resulted in an amount of cash remaining in the company. There are several other reasons for a Members Voluntary Liquidation, but these are the ones... --- ### HMRC and Creditor Pressure During Insolvency > If your company is facing HMRC or a creditor pressure during insolvency then it will be better to address the problem straight away. - Published: 2023-03-13 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/services/hmrc-and-creditor-pressure/ We are an established and trusted business rescue and insolvency practice committed to finding the right solutions for businesses and individuals in financial difficulty. If your company is facing insolvency and is unable to pay HMRC or a creditor then it will be better to address the problem with them rather than leave them to discover the truth for themselves. Notifying them of your inability to pay a debt and keeping them up to date is an important step to take. We can assist you in doing so by formulating an achievable and realistic plan to present to creditors. If you find yourself or your business in a position where you cannot pay HMRC or other creditors, contact BRI Business Recovery and Insolvency today. Action HMRC and Creditors Could Take During Insolvency If you ignore or do not notify HMRC/a creditor when unable to pay and therefore facing insolvency, this will likely lead to them formally requesting payment. This can be done through 3 formal routes: Apply to Court who will issue you with a County/High Court judgement; Serving your company with a Statutory Demand; Serving your company with a Winding-up Petition. Any Court judgement, statutory demand or winding-up petition will be served at your company’s registered office address. The ordinary process for creditors to follow is to initially issue you with a judgement or statutory demand and if it is not dealt with within a certain time frame then a winding-up petition may follow. However, on occasions, creditors may endeavour to abuse the process and proceed directly to serving a winding-up petition without prior formal notification. HMRC Debt Collecting HMRC are more likely... --- ### Partnership Voluntary Arrangement > A partnership voluntary arrangement (‘PVA’) is a legally binding agreement between the partners & the partnership’s creditors to repay them. - Published: 2023-03-13 - Modified: 2023-10-26 - URL: https://www.briuk.co.uk/services/personal-insolvency/partnership-voluntary-arrangement/ A partnership voluntary arrangement allow the partners to avoid bankruptcy and retain control A partnership voluntary arrangement (‘PVA’) is a legally binding agreement between the partners in a partnership and the partnership’s creditors to repay them in full or in part and over a period of time, usually up to 5 years. A partnership voluntary arrangement often includes a realisation of the partnership’s assets and/or a regular monthly contribution of surplus profit and/or a third party contribution that would otherwise be unavailable in the alternative (bankruptcy of the partners). Unsecured creditors vote on whether or not to accept the proposals for repayment and at least 75% of unsecured creditors, based on value of debt, need to vote in favour in order for it to be approved. Once approved it is legally binding on all partnership creditors and they cannot take further recovery action in relation to their debt. A partnership voluntary arrangement does not include non-partnership debt i. e. if a partner had personal debts on credit card that did not relate to the business. Likewise a partnership voluntary arrangement does not automatically include personal assets of the partners unless being introduced to help sweeten the deal for creditors. A partnership voluntary arrangement allow the partners to avoid bankruptcy and retain control over their assets and business, subject to the terms of the proposals. Contact us if you would like further information and assistance regarding partnership voluntary arrangements. There is no charge for doing so and it is without obligation. --- ### Personal Insolvency > At BRI UK, we specialise in the field of recovery and personal insolvency and believe that we offer sound, practical advice and solutions. - Published: 2023-03-13 - Modified: 2024-03-22 - URL: https://www.briuk.co.uk/services/personal-insolvency/ We are an established and trusted business rescue and insolvency practice committed to finding the right solutions for businesses and individuals in financial difficulty. BRI Business Recovery and Insolvency are an independent firm of insolvency practitioners. We are committed to finding the right recovery or insolvency solutions for businesses as well as individuals in financial difficulty. At BRI Business Recovery and Insolvency, we specialise in the field of recovery and insolvency; we offer sound, practical advice and solutions. What is Personal Insolvency? Personal insolvency is when an individual is unable to repay their debts. It is a financial position which can be distinguished by the individual's inability to pay their debts as and when they fall due or their liabilities being greater than the value of their assets. Personal insolvency is one of the issues that we can help with here at BRI Business Recovery and Insolvency. If you require advice or help with a personal insolvency issue, please contact our team today. Why Seeking Advice for Personal Insolvency is Important If you've found yourself having severe financial difficulty and facing personal insolvency, it is easy to panic. It can have a detrimental impact on your life and, if not addressed, can lead to complicated legal issues. At BRI Business Recovery and Insolvency, our dedicated and professional team will help guide you through personal insolvency and devise the best strategy to deal with any difficulties you are experiencing. The most appropriate for you or your client will depend on many factors. Money, generally, and personal insolvency in particular, is an emotive subject. When it involves a partner/spouse, children and a family home, it just... --- ### Compulsory Liquidation > Compulsory liquidation often occurs when one or more creditors petition the court for the company to be wound up. Find out more here - Published: 2023-03-13 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/services/corporate-insolvency/compulsory-liquidation/ When a company encounters financial difficulty it can be put into administration by a floating charge holder or the directors/shareholders. At BRI Business Recovery and Insolvency, we help companies who are facing financial difficulties. If your company is facing financial issues and would like some professional advice please contact our team today. What is Compulsory Liquidation Compulsory liquidation often occurs when one or more creditors petition the court for the company to be wound up. The company has an opportunity to defend itself in court if they dispute the debt but if the judge rules the debt is valid and overdue the winding up order is likely to be made. Sometimes a breakdown in the relationship between directors and/or shareholders results in a position where some feel it is right for the company to be wound up and in this case those directors or shareholders can petition for the winding up/ compulsory liquidation. If a company becomes aware of a petition for winding up they should contact BRI immediately as we can often help to avoid a compulsory liquidation. The Official Receiver is automatically appointed as liquidator in a compulsory liquidation. Creditors would get the opportunity to appoint an alternative insolvency practitioner but only if they held sufficient votes to do so. Contact us if you would like further information and assistance regarding any aspect of liquidating your business. There is no charge for doing so and it is without obligation Compulsory Liquidation Process Compulsory liquidations tend to follow the below process. Initiated by a Petition for Winding Up: The petition is typically initiated by a creditor, but can also... --- ### Creditors Voluntary Liquidation > A creditors’ voluntary liquidation avoids the need for any court involvement and is handled without the need to hold a creditors meeting. - Published: 2023-03-13 - Modified: 2025-01-28 - URL: https://www.briuk.co.uk/services/corporate-insolvency/creditors-voluntary-liquidation/ When a company has reached the point at which it can no longer trade, a creditors' voluntary liquidation ('CVL') is a common way for the directors and shareholders to choose to close the company. At BRI Business Recovery and Insolvency, we help companies all over the country when it comes to financial issues. Creditors Voluntary Liquidation is a service that we carry out regularly for companies like yours. For more information please contact our team. What is a Creditors Voluntary Liquidation? A Creditors Voluntary Liquidation is a form of company insolvency used when a company is unable to pay its debts and decides to voluntarily close down. It is initiated by the company's directors, but the creditors play a key role in the procedure and deciding who is to be appointing as the liquidator. A CVL avoids the need for any court involvement and is handled, most often, without the need to hold a creditors meeting. Creditors Voluntary Liquidation – What to Expect Some CVLs result in complete closure of the business whilst others include a phoenix or pre-pack element where the business is sold to a new entity allowing it to trade on debt free. When you decide that you wish to commence your Creditors Voluntary Liquidation process, here is what you can expect. All of the information and steps below are prepared and planned by BRI on your behalf. 1. Initial Instruction: The company directors initiate the process to instruct BRI when they recognise the company is in... --- ### Company Insolvency > For help and advice on company insolvency contact BRI today. We help both business and individuals with insolvency. - Published: 2023-03-13 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/services/corporate-insolvency/ We are an established and trusted business rescue and insolvency practice committed to finding the right solutions for businesses and individuals in financial difficulty. We are an independent firm of insolvency practitioners who specialise in company insolvency. We are committed to finding the right solutions for businesses and individuals in financial difficulty. Forms of Company Insolvency There are different forms of company insolvency which may affect organisations. This includes Limited Liability Partnerships (‘LLPs’) and similar structures. These are the main forms of company insolvency that we specialise in: Company voluntary arrangement (‘CVA’) – CVA is a legally binding agreement between a company and its creditors to repay debts over a fixed period. This allows the company to continue trading whilst it repays its creditors by debt restructuring or asset disposal and sale. Administration – Administration is a process designed to rescue a company in financial trouble to maximise the return to its creditors. An insolvency practitioner is consulted to help formulate a restructuring plan, which may lead to administration. This is so that the company can be rescued and continue trading so that the business is protected whilst marketing and sale for all or part of the business is explored. This allows the company to achieve a better outcome than liquidation. Creditors’ voluntary liquidation (‘CVL’) – During CVL, a company’s assets are sold to repay its debts to creditors. In a CVL, the liquidation is initiated by the company directors and enacted by shareholders. Compulsory liquidation – Compulsory Liquidation is the winding up of the company through the court and is often initiated by creditors via a winding-up petition. There is also: Members Voluntary... --- ### Administration > In the run up to the administration, and during it, the company is protected by a moratorium meaning that no party can commence or continue. - Published: 2023-03-13 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/services/restructuring/administration/ When a company encounters financial difficulty it can be put into administration by a floating charge holder or the directors/shareholders. In the run up to the administration, and during it, the company is protected by a moratorium meaning that no party can commence or continue with any legal action including winding up petitions, the recovery of goods or landlords accessing property. A company can only go into administration for one of three reasons, they are: To rescue the company as a going concern; To achieve a better result for creditors as a whole than in a liquidation scenario; To realise the company’s property in order to make a distribution to its preferential or secured creditors. When a company goes into administration the plan may be for the administrators to run the business, or to sell the business, or both. If the administrators run the business this could be with a view to turning its fortunes around and handing it back to shareholders as a trading company or to sell its assets including goodwill so that the business continues in a new entity but without the burden of the historic debt. When an administrator chooses not to run the business but to sell it immediately upon entering administration this is called a pre-pack administration because the marketing, legal work and sale agreements have been completed on the run up to administration and retrospective creditor sanction to the sale is sought. Contact us if you would like further information and assistance regarding any aspect of administration for your business. There is no charge for doing so and it is without obligation. --- ### Court Approved Restructuring Plan > If your business is facing Insolvency, you may want to consider a court approved restructuring plan - contact BRI today. - Published: 2023-03-13 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/services/restructuring/court-approved-restructuring-plan/ A restructuring plan is a Court-approved agreement between a company and its creditors to restructure its debt often allowing it to pay back some, or all of it, over a period of time. If your business is facing Insolvency, a bespoke method to reach a compromise with your creditors might be in the form of a court approved restructuring plan. This is different to a CVA and could be a better option depending upon your circumstances. Find out more about Court Approved Restructuring Plans below. What is a Court Approved Restructuring Plan? A restructuring plan is a Court-approved agreement between a company and its creditors to restructure its debt often allowing it to pay back some, or all of it, over a period of time. What is Required for a Court Approved Restructuring Plan? In order for a restructuring plan to be passed it requires 75% of each class of creditor and shareholders to agree to it. However, if one or more classes of creditor votes against it all is not lost. If the Court deem the proposal to be of general benefit to the majority of creditors without the dissenting classes of creditors being worse off than under a relevant alternative, it can approve the agreement regardless of the dissenting creditors. This is unlike a Company Voluntary Arrangement (‘CVA’) where all classes of creditors must vote in favour by 75% or more for it to be approved. Court Approved Restructuring Plan Process Putting together a court approved restructuring plan requires a large amount of financial and legal due diligence. The procedure requires two court hearings, the first to approve the classes of creditors voting and the second to approve the arrangement. At... --- ### Company Voluntary Arrangement > A company voluntary arrangement (‘CVA’) allows a business to continue to trade in its current form or provide for a controlled closure. - Published: 2023-03-13 - Modified: 2024-08-29 - URL: https://www.briuk.co.uk/services/restructuring/company-voluntary-arrangement/ A company voluntary arrangement (‘CVA’) allows a business to continue to trade in its current form or provide for a controlled closure. A company voluntary arrangement (‘CVA’) allows a business to continue to trade in its current form or provide for a controlled closure. At BRI Business Recovery and Insolvency, we work with clients to help them with their recovery or insolvency in various capacities. One of the areas we specialise in is Company Voluntary Arrangements. If you are facing financial difficulty or insolvency or would like to discuss anything with our team, please contact us. What is a Company Voluntary Arrangement? A CVA is a legally binding agreement between the company and its creditors to repay some or all of the company’s debt over a period of time. In a CVA, the directors remain in control of the company at all times. An insolvency practitioner, acting as Nominee, assists the company to create a proposal to creditors which is drafted and supported by financial forecasts. How does a CVA work? Assuming that at least 75% of each class of creditor, by value of debt, votes in favour of the CVA then it is approved and legally binding on all creditors, even those that didn’t vote or voted against it. The insolvency practitioner who has been appointed to act as Nominee typically becomes the Supervisor once the CVA is approved. The Supervisor’s role is to ensure that the company adheres to the terms of the CVA, to collect any agreed payment contributions and to distribute those to creditors. Why a CVA is a good rescue tool A CVA is a good rescue... --- ### Moratorium > A Moratorium provides breathing space for companies. They provide protection from creditors whilst the company explores rescue options. - Published: 2023-03-13 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/services/restructuring/moratorium/ Part of our Rescue and Recovery options can involve us seeking moratoriums for our clients. A moratorium is a legal procedure to pause legal action being taken against a company by its creditors to allow time to take stock and refinance or restructure the business. Why are Moratoriums Used? Moratoriums provide breathing space for companies who may be in financial difficulty. They provide financial protection from creditors whilst the company explores rescue options in the hope of avoiding a formal insolvency procedure. During the period of the moratorium no legal action or winding up can be commenced or continued with. The existing directors remain in control of the company throughout the moratorium. The length of the moratorium is fixed at 28 days but can be extended for a further 28 days with the court's consent. If you have any questions about moratoriums or want further information, make sure you contact us. What Happens During a Moratorium? During a moratorium, a Monitor, typically an insolvency practitioner such as BRI Business Recovery and Insolvency will be appointed to support and monitor the directors during the moratorium period. A moratorium is commenced by gaining the consent and agreement of an insolvency practitioner (the Monitor) to the likely rescue plan, thereafter, filing notice and other documents in court. BRI Business Recovery and Insolvency on Moratorium At BRI Business Recovery and Insolvency, we can help organisations from all over the country when it comes to rescue and recovery, one of these areas being moratoriums. Contact... --- ### Informal Agreements with Creditors > Informal agreements with creditors are flexible arrangements made between a debtor and their creditors outside of formal legal proceedings - Published: 2023-03-12 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/services/restructuring/informal-agreements/ Informal Agreements including Time to Pay Arrangements with HMRC What are informal agreements with creditors? Informal agreements with creditors are flexible arrangements made between a debtor and their creditors outside of formal legal proceedings such as bankruptcy, liquidation, or any other formal insolvency procedures. With an informal agreement, the debtor typically negotiates with their creditors and suggests a plan to repay debts over a period of time. The plan can involve adjusted terms such as Reduced payment amounts or intervals Extended deadlines Partial forgiveness of debt. The informal agreement approach can allow both parties to avoid the time and expense of formal legal proceedings while still working towards resolving the debt. However, because informal agreements are not legally binding in the same way as formal agreements or court-approved plans, they may not be the best way forward for every personal or business in debt. Make sure that you seek professional recovery and insolvency advice before entering into any informal agreements. Pros of Informal Agreements with Creditors Informal agreements with creditors are often a good way to deal with a smaller number of creditors who are willing to work with you. Whilst they are not legally binding, they demonstrate the debtor's commitment and proactive approach to addressing its inability to settle its debts as and when they fall due. BRI Business Recovery and Insolvency can assist you with how best to consider and set up an informal agreement to present to creditors. Contact us today for more information. Cons of Informal Agreements with Creditors As informal agreements with creditors are... --- ### Restructuring > As with all such problems, when it comes to restructuring, the earlier BRI is called, the better the prospects of recovery and success. - Published: 2023-03-12 - Modified: 2024-04-18 - URL: https://www.briuk.co.uk/services/restructuring/ We are an established and trusted business rescue and insolvency practice committed to finding the right solutions for businesses and individuals in financial difficulty. Restructuring As with all such problems, when it comes to restructuring, the earlier BRI is called, the better the prospects of recovery and success. What is Restructuring? Restructuring is a term used to describe the reorganisation of a company's structure and financial operations. Sometimes, this also includes reorganising the legal ownership and other corporate structures of a company when financial difficulties are being faced. For successful restructuring, seeking the input and advice of an external third party is recommended. Whilst the intention is generally to avoid the need for a formal restructuring procedure where possible, they do offer vital protection from hostile creditors whilst a strategy is drawn and implemented. BRI knows these waters well and can provide you with a safe port in a storm. Restructuring can be a lifeline for companies that are struggling but are capable of being rescued. There are several options when it comes to restructuring. Restructuring Procedures and Plans Different restructuring procedures available to us include: Informal agreements with creditors, including Time to Pay Arrangements with HMRC. Moratorium – a break from creditors whilst other options are explored. This helps to avoid insolvency. Company voluntary arrangement (CVA) is a repayment agreement between the company and creditors. Court approved restructuring plan – a relatively new plan for debt repayments approved by the courts. Administration – a rescue of the business through trade or a pre-packaged sale. What to do if Your Company Might Need a Restructuring Plan When your company experiences a cash-flow crisis, it... --- ### Services > Our services at BRI UK range from Restructuring, Insolvency, Members Voluntary Liquidation and HMRC and Creditor pressure. - Published: 2023-03-12 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/services/ At BRI Business Recovery and Insolvency, we specialise in the field of recovery and insolvency and believe that we offer sound, practical advice and solutions. --- ### Contact Us > You can contact us online or you can request a call back or video call, please send us your details by using the form. - Published: 2023-03-12 - Modified: 2025-01-06 - URL: https://www.briuk.co.uk/contact/ Email us at info@briuk. co. uk If you would like a call back or video call, please send us your details by using the form to the right of this page. We will get back to you as quickly as we can. Message us on LinkedIn Our offices are open 9am-5pm Monday-Friday and the office addresses are below: 100 St James Road Northampton NN5 5LF Tel: 01604 754352 Email: info@briuk. co. uk 18 South Bar Banbury Oxfordshire OX16 9AF Tel: 01295 272121 Email: info@briuk. co. uk 1160 Elliott Court Herald Avenue Coventry Business Park Coventry CV5 6UB Tel: 02476 226839 Email: info@briuk. co. uk 7 Paynes Park Hitchin Hertfordshire SG5 1EH Tel: 01462 429718 Email: info@briuk. co. uk Suite 5 18 Warren Park Way Enderby Leicester LE19 4SA Tel: 01163 666666 Email: info@briuk. co. uk 2nd Floor Elm House Woodlands Business Park Linford Wood West Milton Keynes MK14 6FG Tel: 01908 317387 Email: info@briuk. co. uk Room 39 Welland Workspace 10 Pinchbeck Road Spalding Lincolnshire PE11 1QD Tel: 01775 741020 Email: info@briuk. co. uk --- ### Personal Insolvency Frequently Asked Questions > Here are some of our most common personal insolvency frequently asked questions. Please contact our team if you need further information. - Published: 2023-03-12 - Modified: 2025-04-15 - URL: https://www.briuk.co.uk/services/personal-insolvency/personal-faqs/ Not necessarily. However, if there is equity in your house then this will need to be dealt with accordingly. An individual voluntary arrangement (‘IVA’) can allow you to keep your house in certain circumstances. However, if you are unable to pay your creditors in full by other means, it is likely that you, possibly via a third party, will be required to make a payment to your creditors in lieu of the value of your share of any equity in your house. Click here for further information. In most cases yes. Since 29 May 2000 pension assets have been protected from claims by a trustee in bankruptcy. One exception to this is if excessive pension contributions have been made either before or during the period of financial difficulties. Regular pension income, for example, if you are already drawing an annuity, may be subject to an income payments order. Click here for further information. In most cases yes. Since 29 May 2000 pension assets have been protected from claims by a trustee in bankruptcy. One exception to this is if excessive pension contributions have been made either before or during the period of financial difficulties. Regular pension income, for example, if you are already drawing an annuity, may be subject to an income payments order. Click here for further information. The main consequences of bankruptcy are as follows: Your credit rating will be affected for many years. You will be an undischarged bankrupt for 12 months unless you have previously been... --- ### Meet the Team > Meet our friendly and approachable Business Recovery and Insolvency team. Our experienced team are here to guide you every step of the way. - Published: 2023-03-06 - Modified: 2025-05-02 - URL: https://www.briuk.co.uk/meet-the-team/ Meet the BRI Business Recovery and Insolvency team Who is John professionally? John was a partner of Smith Dove, Chartered Accountants before completing a management buy-out with two other colleagues of the insolvency department in 2001 to form BRI. John is one of four directors of BRI, operating from the Northampton office and is a qualified accountant. What makes John stand out? With over 35 years’ experience of dealing with insolvency related matters, John has advised on a variety of corporate and personal situations, both in terms of their complexity and size. A significant number of the assignments have resulted in the client avoiding an insolvency procedure and have continued to trade on successfully. In his free time... Outside of work John is a keen cyclist and follows the Leicester Tigers. Who is Lauren professionally? Lauren joined BRI Business Recovery and Insolvency in 2006 and became a director in 2021. Lauren manages our head office in Northampton and is a licensed insolvency practitioner and a member of the Insolvency Practitioners Association (IPA). What makes Lauren stand out? Lauren has helped many business owners and directors deal with very challenging situations and regularly assists with problem solving and informal negotiations to try to help avoid the need for a formal insolvency process. However, if an insolvency process is required, Lauren is very experienced in dealing with all aspects of personal and corporate insolvency appointments. Lauren also has a lot of experience dealing with solvent members’ voluntary liquidations for owner managed businesses. In her free time... Outside of work Lauren... --- ### About Us > About BRI - we specialise in the field of recovery and insolvency for companies, businesses and individuals. Contact Us today. - Published: 2023-03-06 - Modified: 2024-11-27 - URL: https://www.briuk.co.uk/about-us/ We are an established and trusted business rescue and insolvency practice committed to finding the right solutions for businesses and individuals in financial difficulty. https://www. youtube. com/watch? v=crRtGjGaG8Y --- ### Home > At BRI UK - Business Recovery and Insolvency, we specialise in the recovery and insolvency and offer sound, practical advice and solutions. - Published: 2023-03-06 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/ https://www. youtube. com/watch? v=crRtGjGaG8Y --- ### Privacy Policy > BRI Business Recovery and Insolvency is dedicated to protecting the confidentiality and privacy of information entrusted to us. - Published: 2023-02-15 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/privacy-policy/ Last updated 23 August 2022 BRI Business Recovery and Insolvency is dedicated to protecting the confidentiality and privacy of information entrusted to us in accordance with the EU General Data Protection Regulation (GDPR) and the UK Data Protection Act 2018. Please read this Privacy Notice to learn about your rights, what information we collect, and how we use and protect it. This website is operated by BRI (UK) Limited (“BRI”, “we”, “us” and “our”) a UK limited company. Who are we? BRI Business Recovery and Insolvency is the trading style of a number of companies including BRI (UK) Limited, BRI (Coventry) Limited, BRI (Milton Keynes) Ltd and BRI (Northampton) Limited. Together these companies will be referred to as “BRI”, “we”, “us” and “our” in this Privacy Notice. Who can you contact for privacy questions or concerns? If you have questions or comments about this Privacy Notice or how we handle personal data, please direct your correspondence marked for the attention of our Data Privacy Officer to: BRI (UK) Limited, 100 St. James Road, Northampton, NN5 5LF or email info@briuk. co. uk. We aim to respond within 30 days from the date we receive privacy-related communications. Occasionally it could take us longer than 30 days to respond if a request is particularly complex a number of requests have been made by you. In this case, we will notify you and keep you updated. You may contact the UK Information Commissioner’s Office at https://ico. org. uk/concerns/handling/ to report concerns you may have... --- ### News > Here you will find news articles written by BRI Business Recovery and Insolvency, where we share our expertise and insights. - Published: 2016-07-12 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/news/ Here you will find news articles written by BRI Business Recovery and Insolvency, where we share our expertise and insights. --- --- --- ## Posts ### A Charity Case – Insolvency Procedures for a Variety of Charity Organisations > BRI helps with Insolvency Procedures for a Variety of Charity Organisations. Find out about how we can help and what the process is here - Published: 2025-06-03 - Modified: 2025-06-04 - URL: https://www.briuk.co.uk/insolvency-procedures-for-a-variety-of-charity-organisations/ - Categories: BRI, Success Stories A variety of companies and charity organisations, including Community Interest Companies (CIC) and Charitable Incorporated Organisations (CIO), do also require winding-up at times. As with all of our clients, BRI are here to assist with insolvency procedures for charity organisations and the like. Insolvency Procedures for Variety of Charity Organisations It is, unfortunately, the case that even those who are set up to only support and help a community can also suffer financial hardships. It is also true that sometimes, like with limited companies, the purpose of the organisation has been served and it now wishes for an orderly winding-down of its affairs. As with any business reaching the end its life, the list of the reasons why this may happen are almost endless, however, BRI Business Recovery and Insolvency have a huge wealth of experience which enables them to review the financial position and assist with an orderly winding down of the organisation or charity if required. Managing Finances For Different Types of Organisations Charities limited by guarantee, friendly societies and CICs are all different types of organisations that we have assisted in insolvency procedures and guidance. This is in addition to the much more common type of company limited by shares. These entities will have a different approach to how they provide services and manage their finances, with the priorities defined within their constitution or articles of association detailing how they will serve a community as opposed to how they will make income. The very fact the organisation... --- ### BRI Charity Day 2025 - Dragon Boat Racing > Here are the details of our 2025 BRI Charity Day! We are really looking forward to this year’s event – Dragon Boat Racing! - Published: 2025-05-20 - Modified: 2025-05-20 - URL: https://www.briuk.co.uk/bri-charity-day-2025/ - Categories: BRI, News Every year, each of the BRI offices come together and volunteer a full working day to a local charity and help them in any which way they can. This year, BRI will not only dedicate a full working day to a local Charity – they will also take part in this year’s Dragon Boat Race for a fantastic cause! Dragon Boat Race The day is in aid of Ailsa’s Aim a charity who provide comprehensive support to individuals and families facing challenging health circumstances. They extend their compassionate services across more than 20 hospitals, wards, centres and schools in the UK, offering a helping hand to patients battling cancer and to families with babies in special care. To find out more about the Ailsa’s Aim, visit their website - www. ailsasaim. co. uk When? 11 employees from the BRI team will be taking part in the Dragon boat race on Saturday 31 May 2025 and they are all looking forward to some friendly competition, whilst their colleagues spectate and cheer them on. Please keep an eye out for our future articles where we will let you know where we finished in the race! --- ### What is an Insolvency Practitioner? > What is the Liquidation of a company? Liquidation is a legal process where a liquidator is appointed to "wind up" the company’s affairs - Published: 2025-04-15 - Modified: 2025-04-15 - URL: https://www.briuk.co.uk/what-is-an-insolvency-practitioner/ - Categories: BRI, Insolvency A licensed Insolvency Practitioner, often referred to as an IP, is authorised to act in relation to an insolvent individual, partnership or company. IPs must follow the law, Statements of Insolvency Practice and other guidance issued by key stakeholders. The work of IPs is monitored by regulators to make sure they adhere to all of these. At BRI Business Recovery and Insolvency, we currently have five licensed insolvency practitioners. Our team are here to help you and your company during times of financial difficulty, contact us today to discuss your situation. What are an Insolvency Practitioner's duties? The primary duties of an insolvency practitioner when appointed liquidator are: To realise the assets of a company for the benefit of all creditors (predominantly with assistance from specialist agents who are appointed by the liquidators) Distribute monies to creditors (where possible) Realising assets during liquidation During liquidation, your insolvency practitioner will realise the assets of a company. Some of the most common assets include: Physical (or "tangible" assets) including buildings, plant and machinery, motor vehicles, furniture, equipment, fixtures and fittings, stock "Intangible" assets such as goodwill, customer list, patents, copyrights, website Outstanding sales invoices (or "trade debtors") Monies owed by directors personally to the company (often referred to as an "overdrawn director's loan account") Refunds due from HM Revenue & Customs ("HMRC"), although they are entitled to set these off against monies owed to them Potential actions against directors personally (under specific sections set out in the Insolvency Act 1986) What about... --- ### Don't Worry, be Frappe; How BRI Helped a Coffee Supplier by Providing Insolvency Advice > Don't Worry, be Frappe; How BRI helped a Coffee Supplier by providing insolvency advice – going the extra mile - Published: 2025-04-08 - Modified: 2025-04-08 - URL: https://www.briuk.co.uk/don-t-worry-be-frappe-insolvency-advice/ - Categories: BRI, Success Stories At BRI Business Recovery and Insolvency, we were introduced by an accountant regarding their client, a UK supplier of Colombian coffee. The Coffee distributor had been trading since 2010 and only had one supplier of stock; they had been the sole supplier since incorporation. Coffee Company Faces Difficulty The Company traded successfully for 14 years and had a good relationship with their long-standing supplier. However, the Covid-19 outbreak resulted in prolonged trading issues. This led to the Coffee Company owing their supplier some £40,000, and the Company was insolvent on both a balance sheet basis and a cash flow basis. Despite the healthy relationship, the supplier was unwilling to continue to provide the Coffee Company with new stock, as they were concerned about the level of credit they had already provided. The supplier was also threatening to issue a winding-up petition against the Coffee Company for the unpaid stock. This placed pressure on the Coffee Company and the director, with seemingly nowhere to turn other than to cease trading and allow the supplier to incur the costs of petitioning to wind up the Company. Insolvency Advice from BRI After liaising with BRI, the director of the Coffee Company understood that they could not repay any monies to the supplier and were unable to source any other revenue streams. As a result of the stress the director had been under, there was also no willingness to carry on with the Company, and ultimately, they wanted to call it a day. Given... --- ### What is the Liquidation of a Company? > What is the Liquidation of a company? Liquidation is a legal process where a liquidator is appointed to "wind up" the company’s affairs - Published: 2025-04-01 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/what-is-the-liquidation-of-a-company/ - Categories: BRI, Liquidation The liquidation of a company is a legal process in which a liquidator is appointed to "wind up" the affairs of a company. There are two types of liquidation: Compulsory liquidation Creditors' voluntary liquidation ("CVL") At BRI Business Recovery and Insolvency, we work with clients through either restructuring or the insolvency process to help them when they are in financial difficulty. If you would like to discuss liquidating your business, or have any questions about insolvency, please contact our team. What are the key differences between compulsory liquidation and creditors' voluntary liquidation? When it comes to the liquidation of a company, there are two different types. A compulsory liquidation of a company occurs when they are unable to pay their debts and a creditor takes formal steps to wind up the company. A creditor will serve a winding-up petition on the company (often submitted by an insolvency lawyer on behalf of a creditor) with the intention of obtaining a winding-up order at the scheduled court hearing. In a CVL, the directors resolve that the company is insolvent and unable to continue trading. They send formal notice to members of a general meeting to consider a special resolution to wind up the company. Does the company have to be based in the UK for liquidation? For most liquidations in England and Wales, both the company's registered office and trading premises are located here. Predicated on advice from suitably qualified and experienced insolvency lawyers, liquidators can deal with overseas companies provided that... --- ### Insolvency vs Liquidation – What is the Difference? > At BRI – Business Recovery and Insolvency, we are on hand to become your trusted partner when it comes to insolvency & liquidation. - Published: 2025-02-18 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/insolvency-vs-liquidation-what-is-the-difference/ - Categories: BRI, Insolvency, Liquidation Insolvency vs Liquidation – What is the difference and how can it affect your business? Insolvency and liquidation are related but distinct concepts in accounting and law. The main difference between the two is that insolvency is a state that your business could be in, whereas liquidation is the process of dissolving the company to resolve the financial stress. At BRI – Business Recovery and Insolvency, we are on hand to become your trusted partner when it comes to understanding insolvency and liquidation. If you require support, please contact our team today. Insolvency meaning Section 123 of the Insolvency Act contains the technical definitions of ‘insolvency’ but broadly speaking it is when a corporate entity, or individual, cannot meet their financial obligations. This can often be assessed in two ways: Cash flow test: when a company/individual cannot pay their debts as they fall due. Balance sheet test: when a company’s/individual’s liabilities exceed their assets. Liquidation meaning Liquidation, on the other hand, is the name given to a formal process of winding up a company’s affairs, realising its assets, and distributing the proceeds to creditors (an equivalent process for an individual is called bankruptcy). Liquidation typically occurs after a business has become insolvent and is instigated one of two way. By the directors, normally via a voluntary liquidation, in which the directors engage with an insolvency practitioner who assists them with the process of placing the company into liquidation. This involves holding a board meeting and a shareholder meeting to agree... --- ### What is the meaning of insolvency in business? > Insolvency in business is where the business liabilities exceed its assets or there isn’t sufficient cash flow to cover financial commitments - Published: 2025-02-04 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/what-is-the-meaning-of-insolvency-in-business/ - Categories: BRI, Insolvency Insolvency in business refers to a financial state where a sole trader or organisation is unable to meet its debt obligations as they become due. Insolvency in business indicates a situation where the liabilities of a business exceed its assets or where the business cannot generate sufficient cash flow to cover its financial commitments. This condition often signals financial distress and requires immediate attention to either rectify the problem or proceed with formal options. Options for businesses facing insolvency can include such as restructuring or liquidation. BRI Business Recovery and Insolvency specialise in this area so, if you require advice or support, then please contact us. Key concepts of insolvency in business If you have concerns about your businesses facing insolvency, it will be helpful to understand the different concepts. At BRI Business Recovery and Insolvency we see two main types of insolvency in business: Cash flow insolvency: This occurs when a business is unable to pay its debts as they fall due, even if its total assets exceed liabilities. For example, a company might have assets in the form of stock, plant and machinery or property but it cannot convert these into cash quickly enough. This might cause the business to fail to meet obligations like payroll, rent or supplier payments. Balance sheet insolvency: This type of insolvency arises when a company’s liabilities exceed the value of its assets. In this case, even if the company has short-term liquidity, its long-term financial health is at risk, as its total... --- ### In Car Technology: BRI Business Recovery and Insolvency achieving a better return than the statement of affairs estimated outcome > In Car Technology: BRI Business Recovery and Insolvency achieving a better return than the statement of affairs estimated outcome - Published: 2025-01-30 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/better-return-than-the-statement-of-affairs-estimated-outcome/ - Categories: BRI, Success Stories In all insolvent liquidations the directors, most often with the assistance of an insolvency practitioner, prepare a statement of affairs which is provided to all creditors prior to the date of liquidation. What is a statement of affairs? The statement of affairs is similar to a company balance sheet and provides creditors with a picture of the level of the company’s indebtedness and the anticipated value of its assets. These two pieces of information combine to summarise the likely return to creditors during the insolvency process. Unfortunately, it is often the case that the level of return available to unsecured non-preferential creditors (often this will include all consumer and trade creditors) is very low, if not zero, especially now that majority of HMRC claim ranks just above the unsecured creditors. A company facing insolvency when it loses its main customer A business local to one of the BRI offices was in financial difficulty. This was a company which, for over 15 years, had primarily provided a business-to-business service involving the re-manufacture, repair and servicing of original electrical manufactured automotive equipment i. e. stereo systems and other in-car electrical equipment. The loss of a contract with its main customer had devastating consequences for the business and brought future viability into question. In addition, a dispute regarding the runoff period for the contract being brought to an end and disputed invoices led to further financial pressure and stress for the business owners. The director had made best endeavours to achieve a settlement... --- ### Court of Appeal Ruling on Car Finance > The court of appeal ruling on car finance could lead to many individuals making multiple claims. Find out all there is to know with BRI. - Published: 2025-01-28 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/court-of-appeal-ruling-on-car-finance/ - Categories: BRI You may have seen in the media recently some information regarding the court of appeal on car finance. At BRI Business Recovery and Insolvency, we monitor what decisions are made by the court so we are able use this knowledge when advising for you and your business. When did the investigation into motor finance products start? In January 2024, the Financial Conduct Authority (“FCA”) launched an investigation into discretion commission arrangements (“DCA”) issued on car loans between 2007 and 2021. In essence, car dealers and brokers allegedly benefitted from increased commission on higher rates of interest on car finance agreements. This investigation was due to complete in September this year, but this date of completion has subsequently been extended to May 2025. Martin Lewis also took up this issue and within a matter of hours of providing details on a website, thousands of individuals had logged on to learn how it might affect them and whether they might be due compensation. What was the Court of Appeal’s ruling on car finance on 25 October 2024? The Court of Appeal found in favour of the claimants who signed car finance agreements with Close Brothers, FirstRand Bank and Motonovo. They claimed that they were mis-sold motor finance products. In a ruling with much wider consequences than anticipated, a broker (including car dealers) could not receive commissions from a finance provider without their customer’s specific agreement. The customer must formally agree to the amount received (by the car dealer from the lender) together... --- ### Taxi Repowering Company – Preparing for Liquidation > When preparing for liquidation, it’s important that the company director makes things as easy and as smooth as possible. - Published: 2024-12-17 - Modified: 2024-12-17 - URL: https://www.briuk.co.uk/taxi-repowering-company-preparing-for-liquidation/ - Categories: BRI, Liquidation At BRI Business Recovery and Insolvency (“BRI”) we endeavour to rescue a business wherever possible rather than close it. However, there are instances when there is no alternative but to close. In this insight we talk about preparing for liquidation and give examples of our taxi repowering company. The client company We were introduced to this company via its funders when they were close to running out of cash. The business altered taxis to enable them to be more environmentally friendly and comply with the tighter UK emissions regulations in certain cities. The business sought to be a leader in the fight for green powered travel and invested significant sums in their proven technology and vehicles to allow greener travel. Sadly, the further investment needed was too great as the company struggled for some time due to Covid (which essentially stopped travel) and issues with its supply chain. On top of this, there was pressure from creditors for payment. The director did attempt to save the business and return it to profitability but was unable to achieve this and was not willing to risk any further personal funds. BRI Business Recovery and Insolvency’s remit BRI were instructed to assist the director to close the company in preparing for liquidation. However, prior to doing so, BRI felt it important to test the market and see if a sale of the business and assets was possible. Marketing particulars were drafted and approaches to relevant parties were made. However, there was no serious... --- ### Creditors' Voluntary Liquidation vs Administration – What's the difference? > Creditors' voluntary liquidation vs administration – what is the difference? At BRI we help clients who are facing financial difficulty - Published: 2024-12-03 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/creditors-voluntary-liquidation-vs-administration-whats-the-difference/ - Categories: BRI, Liquidation Creditors' voluntary liquidation vs administration – what is the difference, and which one is right for your organisation? At BRI Business Recovery and Insolvency, we help clients who are facing financial difficulty by considering and explaining the various options available. When our clients first come to us, they often aren't sure of the difference between these terms, which is not uncommon. We've created this insight to shine more light on these technical terms. If you require financial advice, contact us today. Creditors Voluntary Liquidation vs Administration – Similarities A creditors' voluntary liquidation ("CVL") and an administration are both formal insolvency processes which form part of an insolvency practitioner's "toolkit" when advising companies that are in financial distress. In both processes, the same tests are used to determine whether a company is insolvent: The "cash flow test" – a company cannot meet its liabilities as and when they fall due The "balance sheet test" – a company's liabilities (including any contingent liabilities) exceed the market (or "fair") value of its assets. Creditors Voluntary Liquidation vs Administration - appointing a liquidator or administrator? This is where the two processes begin to differ. In a CVL, the directors and members are in control of this insolvency process. With requisite voting by members, a company is placed into CVL. Creditors then have the option to either ratify the members' choice of liquidator or to appoint a different insolvency practitioner to deal with the liquidation. Notice of this liquidation process has to be provided to... --- ### Retail Rescue: Alternative to Insolvency > At BRI Business Recovery & Insolvency, we support our clients & help them find an alternative to insolvency where possible. Contact us today - Published: 2024-11-26 - Modified: 2024-11-26 - URL: https://www.briuk.co.uk/retail-rescue-alternative-to-insolvency/ - Categories: BRI, Success Stories At BRI, we work with companies in various industries to advise them on the best way to move forward when they run into financial problems. We support our clients and help them find alternatives to insolvency where possible. In this case study, we talk about some of the work we conducted with a recent retail client. Retail rescue with BRI BRI were initially contacted in January 2024 by a client wanting some initial advice and guidance regarding their company. The Company was a retailer, providing high end clothing products. The Company operated mostly online but also had some concession stock in retail outlets in the UK and Europe. During the pandemic, sales declined, and the Company applied for a number of loan facilities in order to assist with cashflow. Unfortunately, post pandemic, the financial position of the Company did not improve and the repayments on the debt, of which most had been personally guaranteed by the director, was crippling finances. Initial meeting with BRI During the initial meeting with BRI, our team advised the director about what steps they needed to take to protect the interests of the creditors in the event that the Company was not able to avoid insolvency. We also discussed how, as a result of the Company being technically insolvent, their duties and responsibilities as the director had changed. Whilst the director did not believe that an insolvency process was required immediately (at the time of our meeting they were in discussions with investors to raise... --- ### Corporate Group Restructuring for Holdings Company > View our recent case study on how we helped rescue a holding company using corporate group restructuring. Contact us for advice and support - Published: 2024-11-12 - Modified: 2024-11-12 - URL: https://www.briuk.co.uk/corporate-group-restructuring-for-holding-company/ - Categories: BRI, Success Stories Background At BRI Business Recovery and Insolvency, one of the ways we help our clients is through Corporate Group Restructuring. Within this case study we will be discussing an example of how this works and how we helped. BRI was approached by an accountant and tax advisor who dealt with a Group that consisted of one holding company and two 100% owned subsidiary companies. This is a common structure with a view to protecting a property asset in the event that the trading company fails. Holding Company and Trading Company The holding company provided management services to both subsidiaries and invoiced these on a monthly basis. The trading company was in the manufacturing industry and had been placed in creditors’ voluntary liquidation. It owed significant amounts to both the holding company and the property company. Property Company Assets This had one saleable asset which was a commercial property. A sale and purchase agreement had been signed although the “long stop date” for completion within the terms and conditions had lapsed. Costs had also been incurred in relation to a new site for the construction of new commercial premises. Partly due to non-payment of suppliers, all construction works had effectively ceased. A contract had also been entered into for the manufacture of commercial building at a plant based overseas. Property Company’s Financial Position Rent arrears with the trading company had adversely impacted cash flow to the extent that payments to suppliers could not be made as and when they fell due.... --- ### The 2024 Autumn Budget and Members’ Voluntary Liquidations (MVLs) > Prior to the budget being delivered, changes to Capital Gains Tax and Business Asset Disposal Relief, were anticipated. - Published: 2024-11-05 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/the-2024-autumn-budget-and-members-voluntary-liquidations/ - Categories: BRI, Members Voluntary Liquidation The Autumn 2024 Budget changes Prior to the budget being delivered on 30 October, changes to Capital Gains Tax (CGT) and Business Asset Disposal Relief (BADR), formerly known as Entrepreneur’s Relief, were anticipated. Unsurprisingly, both predictions turned out to be correct, with changes to CGT implemented immediately and BADR rates to change as of 6 April 2025. Changes to Capital Gains Tax rates and Business Asset Disposal Relief The table below summarises the budget amendments to CGT rates and BADR. Tax type 30 October 2024 6 April 2025 6 April 2026 Capital Gains Tax Rate Lower 18% Higher 24% Lower 18% Higher 24% Lower 18% Higher 24% Business Asset Disposal Relief 10% 14% 18% Please note that the, already greatly reduced, annual capital gains exemption of £3,000 will remain. No amendments have been made to the lifetime limit of £1,000,000 for BADR i. e. an individual can receive up to £1,000,000 of qualifying gains to which BADR relief applies, anything in excess of that falls to CGT rates. When closing a business, for members to benefit from BADR relating to a distribution of a company’s assets, a formal liquidation of the company is required, unless the asset value is less than or equivalent to £25,000, in which case the relief can be obtained following a strike off of the company. Members’ Voluntary Liquidation A members’ voluntary liquidation (MVL) is a popular choice for directors and members of solvent businesses when they wish to wind-up and close a company. Once the... --- ### What Happens to the Director of a Company in Liquidation? > What happens to the director of a company in liquidation? Liquidation can be a daunting time for all employees and shareholders - Published: 2024-10-29 - Modified: 2024-10-29 - URL: https://www.briuk.co.uk/what-happens-to-the-director-of-a-company-in-liquidation/ - Categories: BRI, Directors, Liquidation At BRI Business Recovery and Insolvency, we help companies through their insolvency process. One of the questions we are often faced with is “what happens to a director of a company in liquidation? ”. This is often a concern for the director, no matter what the size of the company or the industry they operate in. At BRI we are here to settle your concerns. If your business requires our assistance, contact us today for an initial free consultation today. What are the primary concerns of a director of an insolvent company? During the initial meeting between BRI and the company directors, first point of concern for directors is addressing how the current financial performance of the company will affect the company prospects of avoiding an insolvent process. Should it be established that an insolvency process is unavoidable; directors will understandably become concerned about how this will affect them personally. When losing their main source of personal income (assuming they drew some form of remuneration from the company now entering an insolvency process), the director needs to be aware of other potential threats to their personal finances: Crystallisation of personal guarantees (PGs), often given when trade was going well, allow company creditors to recover funds from the director personally; A director’s loan account to the company becoming repayable – again, when times are good, directors often draw funds from a company and worry about how to account for the sums at some later point, but when an insolvency event happens,... --- ### Plumbers merchant: 100p in the £ CVA Successfully Completed > Take a look at one of our case studies containing one of many CVA’s that we have successfully completed At BRI Business Recovery & Insolvency - Published: 2024-10-22 - Modified: 2024-10-22 - URL: https://www.briuk.co.uk/plumbers-merchant-100p-in-the-cva-successfully-completed/ - Categories: BRI, Success Stories BRI Business Recovery and Insolvency bucking the Company Voluntary Arrangements (“CVAs”) trend? Seeing the words ‘successfully completed’; ‘100p in the £’; and ‘CVA’ all together in the same heading is incredibly rare. Why? The number of CVA’s implemented annually remain approximately half of those that were recorded prior to the pandemic. A review previously carried out by one of the insolvency regulators identified that about 2/3 of CVA’s were unsuccessful and ended in termination. HM Revenue & Customs changed their creditor status back to preferential on 1 December 2020. With them now having priority status over other creditors, this often reduces the prospect of producing a proposal with an acceptable return to the unsecured creditors. At BRI Business Recovery and Insolvency we are well versed in implementing successful CVAs for clients. This case study is one of many CVA’s that we have successfully completed. How does a CVA provide a “relief valve” to companies drowning in historic debts? A CVA is a legally binding agreement between the company and its creditors that outlines how debts of a company will be settled, either in full or in part, over a period of time. The legislation is light on specifics – the terms of the Arrangement can be drafted, and modified by creditors, in any way subject to the company agreeing to it and 75% of creditors agreeing too (with a safeguard against associated creditors pushing through something that non-associated creditors do not want). A CVA mechanism is an effective tool to... --- ### Bad Business Insolvency Advice From Unregulated Companies > There are several unregulated companies who are constantly giving bad business insolvency advice. Contact BRI if you require support. - Published: 2024-10-15 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/bad-business-insolvency-advice-from-unregulated-companies/ - Categories: BRI, Insolvency, Liquidation It has recently been announced on gov. uk that a number of firms which offer a “rescue” service for financially struggling companies have effectively been shut down after misleading directors and providing incorrect business insolvency advice. A total of seven associated firms have been shut down by the secretary of state and placed into compulsory liquidation. These companies purported to help sell businesses that were in financial distress, misleading former directors by telling them they could keep their company’s assets, continue to trade the business through a new company and avoid any responsibility for its debts. Bad Businesses Insolvency Advice Some of the other worrying advice provided includes: Advising directors that they were able to avoid having to pay the costs of liquidation by taking up the services they offer as an alternative to using insolvency practitioners. Advising directors that resigning their position as directors before formal insolvency proceedings could proceed would remove the risk of any damage to their reputation. Advising directors that they could delay providing any information to Companies House in order that they are still able to access the old company’s bank account. Advising directors that a new company could use the old company’s trading names without have to pay for any intellectual property rights and advising them incorrectly about the laws which govern the re-use of an insolvent company’s name which have been implemented in UK insolvency law to protect creditors. The above advice undermines the UK insolvency processes and laws. Because of this, the... --- ### What Are Your Employee Rights When A Company Closes Down? > At BRI, we provide legal advice for companies who are facing insolvency. This includes your employee rights when a company closes down. - Published: 2024-10-01 - Modified: 2024-10-15 - URL: https://www.briuk.co.uk/employee-rights-when-a-company-closes-down/ - Categories: BRI, Liquidation At BRI Business Recovery and Insolvency, we specialise in providing legal advice for companies who are facing insolvency. This includes your employee rights when a company closes down. We have helped countless companies and individuals during these trying times. As an employee, it’s important to understand what your rights are. What are your employee rights when a company closes down? If a company is experiencing financial difficulty, the board of directors will often consider what steps can be taken to reduce its operating costs. This can include directors taking steps to consult with employees in order to talk about the changes they’re proposing and about the potential risk of redundancies. They must explain why redundancies are being considered and whether there are any alternatives. You may make suggestions on how redundancies could be reduced or avoided altogether. The specific steps a company must take when consulting with their employees are dependent on UK employment legislation and any additional rights stated in the employment contracts. Employee rights if a company goes into liquidation or Administration When a company goes into an insolvency process, any employees are entitled to claim monies owed to them by the Company from the Redundancy Payments Service (RPS). If BRI Business Recovery and Insolvency are assisting with the insolvency process, we would let you, as an employee, know how your job is affected, the claims you can make with the RPS and what steps to take. How to make your claim if the company you work for... --- ### The Autumn Budget 2024 – Changes to Capital Gains Tax for Shareholders > Since Labour won the general election, it has been rumoured that there could be changes to Capital Gains Tax for shareholders - Published: 2024-09-25 - Modified: 2024-10-15 - URL: https://www.briuk.co.uk/the-autumn-budget-2024-changes-to-capital-gains-tax-for-shareholders/ - Categories: BRI As we all know, Labour won the general election on 4th July 2024, and it has been rumoured that there could be potential changes to Capital Gains Tax. Whilst at BRI we do not usually get involved in speculation or ‘ifs and buts’, but given there may be a potential change to the industry we have been in for 20+ years, we feel it is certainly worthwhile to talk about it. What are the changes to capital gains tax for shareholders? In this insight, we provide an overview. Solvent liquidations – Members’ Voluntary Liquidations (“MVLs”) In brief, a solvent company can be described as one that has assets that outweigh the liabilities and can pay its debts as and when they fall due. When a solvent company has come to the end of its useful life; whether that be because trading has ceased or shareholders are coming to retirement age and wish to stop, if there are sufficient assets in the company then a formal way of closing it down is an MVL. An MVL is where a qualified Insolvency Practitioner is appointed as a liquidator and they realise the assets and then distribute the cash to the shareholders as per their shareholding, after all creditors have been paid in full. Shareholders in an MVL The distributions which the shareholders receive from an MVL will need to be declared to HMRC on their personal tax returns and is a capital distribution and therefore subject to capital gains tax, and not... --- ### Insolvency vs Bankruptcy – What is the Difference? > Something we’re often asked by our clients is confusion with the terms insolvency vs bankruptcy. What is the difference between the two? - Published: 2024-08-20 - Modified: 2024-08-20 - URL: https://www.briuk.co.uk/insolvency-vs-bankruptcy/ - Categories: Bankruptcy, BRI, Insolvency At BRI Business Recovery and Insolvency, we provide formal professional advice to companies who are struggling financially. This includes tips and pointers to avoid using us formally, it can include assistance with restructuring the company, or to use our other formal insolvency services. Something we are often asked by our clients or where we find that there is confusion is with the terms insolvency vs bankruptcy. What is the difference between the two? In this insight, we will discuss the differences between insolvency vs bankruptcy. Definition of Insolvency Insolvency is defined in the Insolvency Act (“IA”) 1986 under sections 123 IA 1986 for corporate entities (i. e. a limited company) and 268 IA 1986 for individuals. In summary, insolvency is the inability of a corporate entity, business or an individual to pay their debts as and when they fall due. In addition, for corporate entities, the second insolvency test is whether their assets are worth less than the value of their liabilities. Definition of Bankruptcy Bankruptcy is a formal insolvency process that is used by individuals (including sole traders) to deal with debt problems. An individual can enter into bankruptcy by completing an application at gov. uk, and an individual can be forced into bankruptcy by a creditor (someone who is owed money). A creditor can present a bankruptcy petition against an individual if they are owed £5,000 or more. Following the making of a bankruptcy order, a trustee in bankruptcy will be appointed to deal with the bankruptcy estate... --- ### The Role Of A BRI Trainee Insolvency Administrator > Find out about the role of a trainee insolvency administrator. We work with a variety of clients in different industries. - Published: 2024-08-13 - Modified: 2024-08-13 - URL: https://www.briuk.co.uk/the-role-of-a-bri-trainee-insolvency-administrator/ - Categories: BRI, Insolvency What Draws Trainee Administrators to Insolvency? School leavers and graduates alike are often unaware of a potential career in insolvency. Based on feedback provided to us, applicants are drawn to the variety of the work and dealing with many different businesses and people within the economy. BRI has dealt with clients across a wide range of sectors, meaning that the variety and experiences are broad in every sense of the word. Some graduates have touched on insolvency in their chosen degrees and are keen to gain practical experience in this area. Many applicants ask a similar question to the interviewers regarding their experience. There are a number of common threads to these answers but it is likely to be different for each individual. Some common threads include the variety of the work involved and helping directors when they are in a difficult situation from both a professional and a personal perspective. In the SME marketplace, the success of the business and the financial position of a family are often inextricably linked. Trainee Insolvency Administrator: What initial training can be expected? For Trainee Insolvency Administrator positions, much of the training received is on-the-job training where a Senior Administrator (or a Manager) sit down with a trainee and goes through the work that is required of them. In addition, the underlying reasons for undertaking the work will also be explained. Trainee Insolvency Administrators also have access to “in house” videos which will explain various practical aspects of the job. They will also... --- ### Directors and Insolvency: What are a director's responsibilities when a company becomes insolvent? > Directors and insolvency: what are the obligations and duties for a director when the company becomes insolvent? How does the role change? - Published: 2024-07-23 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/directors-and-insolvency-what-are-a-directors-responsibilities-when-a-company-becomes-insolvent/ - Categories: Directors, Insolvency At BRI Business Recovery and Insolvency, we work with companies in various industries when they are going through insolvency or have financial difficulties. One of the questions we are often asked is about directors and insolvency. What are a director's responsibilities when a company becomes insolvent? What are a director's general duties under the Companies Act 2006? To understand a director's responsibilities when a company becomes insolvent, we can refer back to a director's general duties under the Companies Act 2006. As a director, you must: Act within powers Promote the success of a company Exercise independent judgment Exercise reasonable care, skill and diligence Avoid conflicts of interest (a conflict situation) Not accept benefits from third parties Declare interests in proposed or existing transactions or arrangements with the company From a practical point of view, a director is effectively an agent of the company who is appointed by the shareholders (or members) to manage the company's day-to-day affairs. Are there any other obligations and duties for a director outside the Companies Act 2006? There are both common law principles and other legislation that place additional obligations on directors. Some examples include: A duty of confidentiality to their company (common law principle) Health and safety and environmental legislation Competition law and anti-corruption legislation What if a director does not comply with these duties? An application to Court can be made by the company, an individual director or a shareholder. Taking legal advice as soon as possible after the breach has occurred... --- ### New costs of striking off a company > From 1 May 2024, the costs of striking off a limited company has increased to £44 for a paper application and £33 for a digital application - Published: 2024-07-16 - Modified: 2024-07-16 - URL: https://www.briuk.co.uk/new-costs-of-striking-off-a-company/ - Categories: HMRC, Liquidation The Insolvency Service has announced that from 1 May 2024, the costs of striking off a limited company has increased to £44 for a paper application and £33 for a digital application. This is quite the increase from the previous £10 (paper) and £8 (digital) respectively. At BRI Business Recovery and Insolvency, we provide support and advice to companies facing financial difficulty. We also make it our priority to keep you up-to-date on legislation changes that might affect your business. What is a striking off application? When a new company begins trading, it must be registered on Companies House. If the company ceases trading and is no longer required, it will need to be struck off the register. Striking off is also known as ‘dissolving’ a company and is an option for a company based on meeting certain criteria, which are stated below. Once your company is struck off, you will lose access to any company bank accounts and will not be able to receive any payments to these accounts without restoring the company. It is, therefore, vital that you ensure all have dealt with all company assets prior to your strike off application. Applying to strike off my company To strike off your company, you must submit a striking off application to Companies House to remove a company from the Companies Register. If you meet the criteria, it can be cost-effective for a director to close down a limited company. This application will eventually lead to a company being... --- ### Bakery Business Rescue: Fresh From The Oven > Read our case study to find out how we helped with a bakery business rescue – contact BRI if you require advice around rescue & recovery - Published: 2024-07-09 - Modified: 2024-07-09 - URL: https://www.briuk.co.uk/bakery-business-rescue-fresh-from-the-oven/ - Categories: Success Stories A “Proven” track record in helping and rescuing bakeries The bakery industry has faced many financial challenges in recent times, but you “knead” not worry as we have dealt with a number of bakeries that have found themselves in financial difficulties over the past few years. These have ranged from family run bakeries that have served local communities for a number of years; as well as Artisan bakeries serving the most modern of products. In a recent advisory role, we supported the board of directors on how to restructure its bakery business without an insolvency process being required by ultimately removing the threat of creditors taking action and allowed the business to trade at a level above its break-even point. A recipe of challenges for the bakery industry – Why are bakeries facing insolvency? Although one may be forgiven for assuming that the popularity of cooking programmes based around baking, particularly the one with British, bake, great and off all in the title, would have led to an appreciation and demand for beautifully baked produce, unfortunately for commercial operators the picture is much more complicated. The rising costs of energy in recent years – obviously baking requires a great deal of electric/gas – as well as the rising costs of ingredients (the war in Ukraine causing global issues with wheat prices) along with wage pressures following last year’s inflation increase, hike in delivery costs when the fuel price escalated and the ongoing recovery from Covid period closures, are a series... --- ### Closing a sole trader business > If you need assistance when it comes to closing a sole trader business or any other financial difficulty, do not hesitate to contact us. - Published: 2024-06-25 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/closing-a-sole-trade-business/ - Categories: Insolvency At BRI Business Recovery and Insolvency, we can provide help and advice on all areas of business insolvency. In this insight, we will focus on closing a sole trader business. If this is affecting your business and you are looking for support, please contact us. Closing a sole trader business as an Insolvent sole trader If you have been running a business as a sole trader and are now looking to close it down due to insolvency, i. e. , the liabilities are greater than the assets (balance sheet test), or you can no longer pay the bills as they fall due (cashflow test) there are a few options open to you. Options for closing a sole trader business The formal and informal options for dealing with insolvency that are available when closing a sole trader business are essentially the same as those available to all individuals who are facing financial difficulty. These include but are not limited to Negotiating with creditors, Additional lending, Debt management plans, Bankruptcy, Debt Relief Orders Individual Voluntary Arrangements (IVA). Limitations of solutions you may face If the business is not incorporated and, therefore, not a limited company, then corporate insolvency options are unlikely to be available. This means that procedures that involve the debts staying with the business and not being personal liabilities—such procedures include liquidation, administration, receivership, or a restructuring plan—are not available. Closing a sole trader business: How we help our clients A recent enquiry into our offices came from a lady... --- ### Avoiding insolvency during difficult times > Avoiding insolvency during difficult times can be difficult. There are several current issues which may be contributing to this. - Published: 2024-06-18 - Modified: 2024-06-18 - URL: https://www.briuk.co.uk/avoiding-insolvency-during-difficult-times/ - Categories: Insolvency Keeping your business out of the cold and staying in the black With the latest series of high-profile retail collapses, following in the footsteps of The Body Shop, Paperchase, Cath Kidston, Ted Baker and now Everest 2020 Limited (who supplied doors and windows), how can companies survive and thrive going forward? Current issues and trends causing business insolvency With many retail companies facing difficult times and possibly insolvency, there are many similar factors and challenges among them, which are: Inflation Reduced consumer spending Rising costs have hit retailers hard Lack of marketing Loss of market share High overheads Staffing costs/issues Poor cashflow Rent Arrears In retail, spending during the 2023 pre-Christmas quarter, known as the “golden quarter,” was much quieter than expected, leaving brands with little wiggle room in the leaner months. Ted Baker collapsed due to a confluence of internal issues and market conditions. But whatever the ultimate cause of its decline, its loss will be missed by many who wore the brand. Avoiding insolvency – keeping warm and ahead of the curve Many companies are contemplating how they can survive going forward. With increasing competition and the cost-of-living crisis driving down sales, to avoid insolvency, companies should consider the following: Economic – Essential cost saving Technical – Using new processes or equipment Organisational – Necessary changes to the organisation of the business Reducing unnecessary overheads – Renegotiate leases etc. Reviewing finances regularly – Weekly/monthly basis Advice for avoiding insolvency In whatever sector you operate your business, there are... --- ### BRI Charity Day in the Diary! > Every year, each of the BRI offices come together & volunteer for a charity day to a local charity, this year it's Buckingham Canal Society - Published: 2024-06-03 - Modified: 2024-06-10 - URL: https://www.briuk.co.uk/bri-charity-day-in-the-diary/ - Categories: BRI, News Every year, each of the BRI offices covering Coventry, Hitchin, Milton Keynes and Northampton come together and volunteer a full working day to a local charity and help them in any way they can and in whatever they do. This year, the BRI team will be volunteering their time to the Buckingham Canal Society at their Cosgrove site and will be assisting in providing general restoration and improvements works along the canal (hard hats and high-vis jackets at the ready! ). Life by the canal The Buckingham Canal Society preserve and protect the line of the canal which stretches from Buckingham to Cosgove. Their overall plan for the future is to restore the canal and see the canal re-open. Every inch of the restoration is made possible by donations and volunteering. The restoration and improvement works will bring new life, new recreational opportunities and new environmentally-friendly businesses to the countryside and towns between Cosgrove and Buckingham. Positive Factors The overall improvement of the waterways has a number of positive outcomes. Not only will the habitat of local wildlife improve, but it can also increase public interest in heritage, conservation and biodiversity which will be to the benefit of future generations. To find out more about the Buckingham Canal Society please visit their website - https://www. buckinghamcanal. org. uk/ When? 21 employees from the BRI team will be volunteering a day’s work to the Buckingham Canal Society on 4 June 2024 and they are all looking forward to helping restore and... --- ### Debt Relief Orders Overhauled: Spring Budget Offers Hope to Debtors > Debt Relief Orders (DROs) have undergone significant changes following announcements in the 2024 spring budget. Contact BRI for information - Published: 2024-05-30 - Modified: 2024-06-03 - URL: https://www.briuk.co.uk/debt-relief-orders-overhauled-spring-budget-offers-hope-to-debtors/ - Categories: Economy, HMRC, News, Recovery Debt Relief Orders (DROs) have undergone significant changes following announcements in the 2024 spring budget, aimed at providing vital assistance to individuals burdened by debt. These alterations promise a fresh start for those in financial distress. Changes to Debt Relief Orders Effective from April 6, 2024, the administration fee of £90 for DROs has been abolished, easing the financial burden on applicants. Moreover, additional amendments slated to take effect on June 28, 2024, aim to further enhance the efficacy of DROs are: Increased Debt Coverage: The total amount of debt covered by a DRO will rise from £30,000 to £50,000, broadening the scope of relief available to debtors facing substantial financial liabilities. Expanded Vehicle Allowance: The threshold for vehicle ownership upon entering a DRO will increase from £2,000 to £4,000. This adjustment acknowledges the necessity of vehicles for work or family obligations and reflects the rising value of vehicles in recent years. Breathing Space Scheme In addition to the alterations in DRO, individuals struggling with debt may find relief through the government's Breathing Space debt respite scheme. This initiative, accessible through regulated debt advisers, offers a 60-day respite from the accrual of interest and other charges, while also halting creditor contact and enforcement actions. Alleviating the Financial Strain on Vulnerable Individuals These reforms underscore the government's commitment to alleviating the financial strain on vulnerable individuals and providing avenues for debt relief and recovery. By facilitating access to DROs and bolstering support mechanisms like Breathing Space, policymakers aim to offer a... --- ### Surge in Director Bans for Abusing Covid Support Scheme as Alarming Trends are Revealed > The abuse of covid support schemes has been reported many times & cases are still on increasing. This has resulted in directors being banned - Published: 2024-05-15 - Modified: 2024-05-15 - URL: https://www.briuk.co.uk/surge-in-director-bans-for-abusing-covid-support-scheme-as-alarming-trends-are-revealed/ - Categories: Insolvency, News, Recovery The misuse of Covid support schemes has reached concerning levels, with 831 directors banned by The Insolvency Service for abuse in 2023-24. This marks an 80% increase from the previous year. The average director disqualification length stands at nearly 10 years, reflecting the severity of misconduct. About Covid Support Schemes Introduced in 2020, the Covid Bounce Back Loan Scheme aimed to assist small and medium-sized firms. The Scheme provided low-interest rate loans, with default to the bank predominantly financially guaranteed by the Government. However, with little in the way of controls or checks in place the scheme was, unfortunately, open to abuse. Abuse of Covid Support Schemes Many saw the Covid Support Schemes as ‘free money’ and applied regardless of whether they qualified or not. The abuse of this schemes has been reported significantly, with many using the loans for personal gain, contrary to the terms of the loan. Repercussions for Those Who Have Abused The System Enforcement measures against abusers has resulted in; Company liquidations Criminal convictions Compensation orders Director disqualifications. Since 2021, The Insolvency Service has banned 1,430 directors for such abuses, demonstrating a firm stance against financial misconduct. We fear this is just the tip of the iceberg. The Insolvency Service's efforts continue, with ongoing director disqualifications for bounce back loan misconduct. In 2022-23, 459 directors were disqualified, with 140 banned in 2021-22, the first year after the scheme ceased new applications. These statistics underscore the need for robust oversight and review of Government support initiatives to... --- ### Off-Piste and Lost: Ski and Snowboarding Holiday Companies and Insolvency > When it comes to holiday companies and insolvency, we are seeing increases in ski and snowboarding companies becoming insolvent in the press - Published: 2024-03-12 - Modified: 2024-03-12 - URL: https://www.briuk.co.uk/off-piste-and-lost-ski-and-snowboarding-holiday-companies-and-insolvency/ - Categories: Insolvency, Liquidation, News When it comes to holiday companies and insolvency, we are seeing increases in ski and snowboarding companies in the press. So far this year, we have seen two UK ski/snowboard holiday companies announce insolvency and closure. Powder White closed its doors after 20 years in business, declaring itself to be insolvent, whilst Esprit Ski announced that it would close at the end of this season after 41 years in business. Challenges faced by these ski and snowboarding holiday companies with insolvency looming With the ski and snowboarding holiday companies facing insolvency, we note some common themes and challenges among them, they are; Inflation and a challenging economy making holidays and travel more expensive and therefore out of reach for many people Poor snow conditions in Europe during the 2022/23 season Covid closed off travel and severely affected seasons, with each country having its own Covid restrictions. Brexit made it harder to get UK staff the requisite visas to work in Europe. The above points only serve to compound cash flow issues and profitability, which in powder White and Esprit Ski’s cases could not be recovered from Holiday companies and insolvency At BRI Business Recovery and Insolvency, we have advised numerous holiday companies over the years regarding their financial positions and how to restructure or complete a controlled closure. There are always various parties and interests to manage in these situations. The three main groups to consider when a holiday company is facing insolvency are: the consumer, i. e. those with... --- ### WHY ARE COMPULSORY LIQUIDATIONS ON THE INCREASE? > Why are compulsory liquidations on the increase and what can your company do to avoid this. Contact BRI for full details. - Published: 2024-02-12 - Modified: 2024-04-16 - URL: https://www.briuk.co.uk/why-are-compulsory-liquidations-on-the-increase/ - Categories: Economy, Insolvency, Liquidation, News There has been much comment both within the restructuring world and the wider press about the increase in insolvency statistics for companies and how these are now exceeding pre-pandemic levels. But why are compulsory liquidations on the increase? Compulsory Liquidation One of the options available to creditors (provided debt greater than £750) is to petition for the winding up of a company. At a court hearing, a judge has the authority to grant a winding-up order which will result in that company being placed in compulsory liquidation and the Official Receiver being appointed liquidator in the first instance. For the 2019 calendar year, figures compiled by The Insolvency Service show that compulsory liquidations were 3,001 but these dropped to 491 in the year ended 31 December 2021. This was the lowest level since they started collating the information in 1960. The reasons for this significant reduction were three-fold. The first is that companies had been supported with a number of government-backed schemes including furlough, bounce back loans (“BBL”) and the Coronavirus Business Interruption Loan Scheme (“CBILS”). The second factor was that HM Revenue & Customs (“HMRC”) were actively supporting businesses and not looking to take action against them. The third and final factor was the temporary ban on winding up petitions between 1 March and 30 September 2021 unless the petitioning creditor could demonstrate that Covid did not have a financial effect on the company concerned. Why are Compulsory Liquidations on the Increase? Whilst HMRC are still supporting businesses by... --- ### Insolvency on the increase > In the statistics released for the month of December 2023, we can see that insolvency is on the increase. Find out more here. - Published: 2024-01-30 - Modified: 2024-02-21 - URL: https://www.briuk.co.uk/insolvency-on-the-increase/ - Categories: BRI, Creditors, Economy, Insolvency, Liquidation In the statistics released for the month of December 2023, we can see that insolvency is on the increase. The total number of insolvencies increased by 2% compared to December 2022. A total of 2,002 companies became insolvent in December 2023, surpassing the levels seen during the period of government support measures in 2020 during the pandemic. The statistics suggest that whilst the current economic challenges are impacting businesses hard, this is resulting in a growing number being placed into insolvency procedures. Total Number of Insolvencies December 2023 Information extracted from Gov. uk shows that the total number of insolvencies for December 2023 were made up as follows: Compulsory liquidations (WUC) – 153 Creditors’ voluntary liquidations (CVL) – 1,731 Administrations (ADM) – 103 Company Voluntary Arrangements (CVA) – 15 Increase in Insolvency Through the Years The table below shows the total number of insolvencies year-to-date for the top three sectors that have experienced the most insolvencies (January – December 2023). It also includes the number of insolvencies for the same period in 2020, 2021, 2022 and 2023. The % share shown is for the entire year up to December 2023. Sector Year - 2020 Year - 2021 Year - 2022 Year - 2023 % Share Construction 2,474 3,147 4,776 5,124 16. 97% Wholesale and Retail 2,057 2,017 3,652 4,349 14. 40% Accommodation & Food services 2,017 1,928 3,132 4,227 14. 00% The numbers show that amongst the insolvencies that have taken place this year, the construction sector remains the most... --- ### How does bankrupt Birmingham impact local businesses? > Have you felt the effects of bankrupt Birmingham impact local businesses? Find out more about how this is effecting many organisations. - Published: 2023-11-29 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/how-does-bankrupt-birmingham-impact-local-businesses/ - Categories: Bankruptcy, Economy, Local News, News The recent news of Birmingham Council has sent shockwaves amongst businesses and residents around the city and its wider area who are fearful of the impact that this will have. As the largest local authority in Europe, the financial collapse of Birmingham City Council will have far-reaching consequences on businesses, providing the Council non-essential services both large and small, as well as the general population. Many business owners are likely worried for the financial impact with limited financial resources available from the city Council, possible payment delays or potential defaults which may hit small and medium-sized suppliers particularly hard. This situation can, in turn, create a ripple effect, as these suppliers may struggle to pay their own employees or fulfill their obligations to other businesses they service. Small and medium-sized businesses often rely on local government support programs and advisory services to navigate the complexities of running a business. However, in the face of the current situation, these supportive services might be curtailed or even discontinued altogether, leaving entrepreneurs with reduced access to resources and guidance. Without proper maintenance of public spaces and the potential cutback on city events or promotions, the attractiveness of Birmingham as a shopping and entertainment destination may decline. This reduction in footfall can significantly impact small retailers, restaurants, and leisure businesses, which heavily rely on local patronage for survival. The Council could implement a drastic reduction or complete elimination of funding for business support programs aimed at helping small local businesses thrive. This can include... --- ### Lights! Camera! No Action (!?) > Companies that are connected to the film industry have approached our firm to discuss a lack of new work and cash flows issues - Published: 2023-11-29 - Modified: 2024-01-24 - URL: https://www.briuk.co.uk/lights-camera-no-action/ - Categories: BRI, Events, News The uncanny valley of unintended consequences can result in seemingly unconnected worlds coming into contact. Such as finding the current Writers Guild of America strike taking place in Hollywood, California resulting in new enquiries for the BRI Milton Keynes office. Companies that are connected to the film industry (via numerous pathways) have approached our firm to discuss a lack of new work and cash flows issues being experienced due to the cessation of film making projects – all stemming from the strikes. This example of an issue, which I am sure for many is merely a news item of passing interest, impacting businesses in the local economy, goes to show that directors always needs to be mindful of the full scope of factors that may impact the successful running of their business. Issues that directors’ face can be incredibly localised (a staff member slipping on a wet floor leading to time of work and an insurance claim) right up to international matters – such as the one above – or the unexpected pandemic that is not far from any of our memories. Although directors are not expected to be clairvoyants and attempts at preparing for every single eventually is a potential route to burn out (or madness), it is always wise to occasionally step back and take an holistic view of your business and consider each aspect, including financial, to identify any improvements to be made or problems requiring resolution. For any work projection or cash flow concerns that are... --- ### Directors claims to the Redundancy Payments Service as employees > Guidance has recently been updated by the Redundancy Payments Service to provide greater clarity to Insolvency Practitioners. - Published: 2023-11-29 - Modified: 2024-01-24 - URL: https://www.briuk.co.uk/directors-claims-to-the-redundancy-payments-service-as-employees/ - Categories: Directors, HMRC Guidance has recently been updated by the Redundancy Payments Service to provide greater clarity to Insolvency Practitioners on their determination of employee status when assessing claims made by company directors. Only employees who are made redundant are entitled to payments from the National Insurance Fund. A director who is also an office holder can be eligible for payments and when applying to the Insolvency Service for monies owed, they will need to provide evidence to support their claim that they too were an employee. What does the Redundancy Payments Service require On submission of the director’s claim, the Redundancy Payments Service will contact them to request further information which may include: Details of the structure of the company in terms of directorships and shareholders; P60’s for the last 3 years; Wage slips for the last 3 months; Employer’s bank statements for last 12 months to review regularity of payments made; A comparison of the contracted hours being claimed in relation to the work being undertaken; A copy of the contract of employment; Dividend payments received in the last 3 years; Directors loans; Holiday pay arrangements; Pension arrangements regarding any workplace pension scheme; Sick leave procedures; Grievance and disciplinary procedures. The Redundancy Payments Service will not make any payments to directors if there are outstanding directors loan. Therefore in order to be considered for redundancy our recommendation is to ensure these are settled prior to liquidation. From the information provided by the directors, the Redundancy Payments Service will determine the probability... --- ### Your best interests at heart > BRI received no liquidation fee on this occasion but will go to any length in order to provide the best results for your clients - Published: 2023-11-29 - Modified: 2024-01-24 - URL: https://www.briuk.co.uk/your-best-interests-at-heart/ - Categories: Creditors, Insolvency, Liquidation Not sure what the insolvency practitioner’s equivalent of the Hippocratic Oath is – the Insolvency Code of Ethics perhaps? However, regardless of the source of good practice the whole industry follows, we here at BRI always try to go that little bit further with respect to the level of customer care provided to clients. Recently, following a referral from their accountant, a client advised us that they wished to place their company into liquidation. A liability was owed to their landlord and with the lease having several years still to run, the directors knew this ongoing liability couldn’t be met. At this point BRI took up the baton and guided the directors towards negotiation with the landlord. The view being that with assistance from BRI it would be possible to outline to the landlord the likely outcomes should an insolvency process follow and why reaching an earlier settlement may be in the their best interests. Despite the directors being initially unconvinced by the approach/likely success of negotiations – and actually asking again if liquidation would not be simpler – BRI rejected the opportunity take a fee as liquidator, instead insisting that the best outcome for all parties would be a settlement. The directors trusted in our expertise and discussions took place, the landlord understood the outcomes outlined and specifically why a liquidation would not be of benefit. Subsequently a settlement was reached with an informal surrender of the lease taking place, the premises returned to the landlord and the company... --- ### Liquidation Vs Dissolution > Liquidation Vs Dissolution: if you are closing your company down which will best suit you. Find out more here. - Published: 2023-11-29 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/liquidation-v-dissolution/ - Categories: Liquidation Liquidation Vs Dissolution: It is an unfortunate case that in the recent economic climate, post pandemic and with the cost of living crises and high inflation, that many businesses are struggling to survive and are having to take the decision to cease trade. Many directors are thinking about dissolution (aka strike off) as a cheaper way of closing down a company but what is the difference between dissolution and creditors’ voluntary liquidation and which process is the better option? In brief, a creditors’ voluntary liquidation (CVL) is a formal insolvency process, which means that the winding-up of the company has been handled/overseen by licenced insolvency practitioners. The directors can easily pass control of the process to liquidators. This means that that: A rescue and sale of any goodwill/business can take place Any company assets would be valued and sold by independent agents for fair value; Any investigations which would lead to further assets realisations could be pursued for the benefit of creditors; Employees are able to make claims in a liquidation and the redundancy payments office will pay those claims up to the capped rates (any surplus employee claims may be paid by the liquidators dependant on whether there are surplus funds in the liquidation estate after costs); Creditors would be treated fairly and any dividend will be paid in order of priority as set out by UK insolvency laws and regulations; The liquidators would also be required to submit a report on the directors’ conduct (reporting on facts only... --- ### “Elementary, my dear Watson” or was it? > There is now a commonly held misconception that bounce back loan applications could be made and supported based on projected turnover figures - Published: 2023-04-03 - Modified: 2024-01-24 - URL: https://www.briuk.co.uk/elementary-my-dear-watson-or-was-it/ - Categories: News 3 April 2023: For any quiz fans out there, do you know what the following phrases have in common ‘Luke, I am your father’, “Why, hello Clarice”, “Toto, we’re not in Kansas anymore” and “bounce back loan applications may be based on projected turnover figures”? As you may have guessed, the common thread is that all of them (including the article title) are misquotations. All representing examples of the ‘Mandela Effect’ i. e. the phenomena of a collective misremembering of a well-known phrase, saying or cultural moment, resulting in the true version being largely forgotten. Of the above examples you will not be surprised that of interest to us is the statement regarding bounce back loans. It appears that there is now a commonly held misconception that bounce back loan applications could be made and supported based on projected turnover figures. Unfortunately, for some directors, a review of the conditions applicable to a bounce back loan, reveals they make no reference to projected turnover figures being an acceptable basis for calculating the value of the applied for bounce back loan. The confusion in this instance may stem from the allowance that was given to start-up companies, which may have not yet had finalised turnover figures, being allowed to enter estimated turnover for the first year of trading (which would have commenced in 2019). However, the allowance of turnover estimates for start-up companies is obviously somewhat different to established companies basing their loan application on projected turnover. Especially with the criteria... --- ### And the winner is…. Asit Jansari of Pattersons Commercial Law! > After a number of elite level shots, lucky pots, fouls – John Scott of Lamb & Holmes and Asit Jansari of Pattersons Commercial Law - Published: 2023-03-16 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/and-the-winner-is-asit-jansari-of-pattersons-commercial-law/ - Categories: Events, Local News 16 March 2023: Yesterday evening we held the first BRI Pool Tournament of the year where 24 local professionals battled it out over the green felt tables to see who would be crowned the BRI Pool Champion for Spring 2023. There were 6 groups of 4 players in the group stages and those who finished top of their group automatically qualified for the quarter finals and the 2 best runners-up also went through. After a number of elite level shots, lucky pots, fouls (this was in the plenty) and of course laughs, the playing field was narrowed down to two finalists – John Scott of Lamb & Holmes and Asit Jansari of Pattersons Commercial Law – where Asit managed to defeat John 2 frames to 1 in a closely fought tactical battle to lift the prestigious BRI Pool Trophy! Congratulations Asit! I am sure that trophy will sit pride of place in the middle of your mantelpiece at home (or in the loft if there’s space of course). A big thank you to everyone that attended last night, it was such a good evening and we hope you all had as much fun as we did. We will be hosting another Pool Tournament in the Autumn and hopefully we will see you all there – Asit is the man to beat so you can start practicing for it now! --- ### Bounce Back Loans – will I be disqualified? > Most bounce back loans were, hopefully, applied for correctly, used for their proper intended purpose and intended to be being repaid. - Published: 2023-03-13 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/bounce-back-loans-will-i-be-disqualified/ - Categories: Directors, Insolvency, News 13 March 2023: As a result of Covid-19’s impact on the economy, companies could borrow up to £50k, often received same day, with a few clicks of the mouse. Bounce Back Loans Most bounce back loans were, hopefully, applied for correctly, used for their proper intended purpose and with every intention of being repaid. When the pandemic hit and trade dropped off a cliff, directors were often worried about how to survive day to day and pay the wages next week let alone how they might start to repay a loan in 12 months’ time. Fast forward 2 + years... With many companies opting to take one, two or all three of the 6 month payment holidays available to them under the bounce back loan scheme, time to repay the loan had arrived. Also factor in the following: The ability to defer VAT for 12 months The need to restock goods and gear up for trade coming back on line Companies couldn’t be wound in the courts and so creditors weren’t pushing clients into liquidation We now have the perfect storm of companies with no cash and large amounts of debt (typically HMRC and bounce back loans) being pursued by creditors. Understandably our industry is busier. Each formal insolvency of a company with a bounce back loan requires the insolvency practitioner to consider the following which formed part of the loan criteria: That the company was not a business in difficulty as at 31 December 2019 The company was carrying... --- ### The BRIGS 2022 season draws to a close and Stuart Love of Rollasons Solicitors is the winner! > The final round of the BRIGS 2022 season was postponed due to weather conditions. Find out more about the 2023 season here - Published: 2023-02-06 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/the-brigs-2022-season-draws-to-a-close-and-stuart-love-of-rollasons-solicitors-is-the-winner/ - Categories: Events, Local News 6 February 2023: Every month (bar January) we host the BRI Golf Society with professionals in Northamptonshire and the 2022 season, which runs from February to December, finally came to a close in January 2023 after having to re-arrange the December 2022 round due to bad weather. 9 players joined for the mild but frosty final round held at Kingsthorpe Golf Club where the league title was up for grabs between 3 different players; Andrew Dyte, John Wells and Stuart Love. Andrew Dyte was leading the way going into the round with Stuart Love and John Wells in hot pursuit and both were ready to battle for the pride and glory that comes with the BRIGS league trophy. Andrew Dyte was able to fend off John Wells but succumbed to the pressure from Stuart Love who ended up finishing joint 1st on the day and also bagged the extra 2 points for nearest the pin and subsequently pipped Andrew at the finish line to become champion. Congratulations Stuart! A picture of him being presented the trophy is below which will likely sit proud on his mantelpiece at home. As stated, the final round of the 2022 season was postponed due to weather conditions and if there was a BRI fair play award then this would be given to Andrew Dyte considering he was top of the league but happily agreed to rearrange the final month. So a quick thank you to Andrew. The new league season for 2023 begins on... --- ### Any ship, but never a partnership… > When working together it's always best to set up a formal partnership before starting anything - and here's why. - Published: 2023-01-24 - Modified: 2024-01-24 - URL: https://www.briuk.co.uk/any-ship-but-never-a-partnership/ - Categories: Directors, Recovery 24 January 2023: When you set out on a voyage with others it is usually with great hope and expectations and a firm destination in mind. When you and A N Other decide to set up your great business idea together you do so with hopes and dreams buzzing with all the potential that you can work together to realise and the thoughts of a formal partnership agreement (or similar) are set aside as something to look at ‘when you get round to it’. Too often those dreams are not as shared as you first thought they were. Yes, one of you is going to work all the hours – but are you both? Petty resentments are stored up. Like acid in a can; they eat away at your insides whilst doing nothing to the person you are fast growing to loathe and detest. When starting out you thought you both knew what destination you were heading for and, subject to some modest trimming of sails here and there, how to get there. But there was never any getting round to that partnership agreement, and you didn’t document who would be doing what, when, where only to now find that your ideas about what you each could and should be doing are not aligned. BRI are very adept at knocking heads together and helping directors acknowledge where they are now and what they need to set in train to get to where they want. How we got here is less... --- ### HMRC and their new but old strategy to chase outstanding payments - Published: 2023-01-17 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/hmrc-and-their-new-but-old-strategy-to-chase-outstanding-payments/ - Categories: Economy, HMRC, Insolvency, News 17 January 2023: A lot of enquiries which we take on a day-to-day basis are companies that are struggling financially and the majority of which have HMRC liabilities in respect of VAT, PAYE and NIC. Over the years these debts have ordinarily accrued over a substantial amount of time and despite requests from HMRC being made to companies during this period to pay what is owed, it is somewhat rare that HMRC would petition to wind-up a company for the unpaid debts. One of the reasons for this could have been because in an insolvent liquidation scenario (where a company cannot pay its debts and is formally liquidated), HMRC would rank as an unsecured creditor and, in reality, rank at the bottom of the pile for dividend purposes with the majority of other unsecured creditors and would scarcely receive anything back on the debts. However, the insolvency legislation changed on 1 December 2020 and since then HMRC, in relation to VAT, PAYE and NIC, were no longer considered an unsecured creditor and would rank as a secondary preferential creditor, which is a lot higher up the ‘hierarchy of creditors’ in an insolvent liquidation scenario. Given the timing of this being around the Coronavirus pandemic and the fact that HMRC were trying to help companies survive by granting payment holidays and longer time-to-pay agreements, their collections team clearly appeared to have a passive approach; which was probably the right thing to do. Fast forward to 2023 and, as before, we are... --- ### Retail overview – 2022 - Published: 2023-01-11 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/retail-overview-2022/ - Categories: Economy, Insolvency, News 11 January 2023: As we move into 2023, we look back on the past year of difficult trading times for a number of businesses. The Bank of England warned that the UK is now heading for the longest recession since records began. Over the period of 2022 there were more than 17,000 shop closures, making it the highest number for 5 years. In addition, the total closures were almost 50% higher than the year previously. The liquidation rate statistics for England and Wales (up to the end of October 2022) showed the following: 1 in 213 companies were liquidated; The company liquidation rate was 46. 9 per 10,000 active companies; The company liquidation rate was higher than the 12 months ending Q2 2022 (3%) and significantly higher than the same quarter a year ago (17. 6%) The retail sector experienced the most hardship and shops were forced to close due to a number of factors including soaring energy costs and increasing wage bills. This together with a downturn in trade as customers tightened their belts and avoided spending lavishly due to the cost of living crisis meant that shops had no option but to close their doors. More than 151,000 retail jobs had been lost in the UK last year, including from online retailers. This was an increase of more than 45,000 on the year before. An independent research body who analyse the retail sector trends advised that shops in the year 2022 were closing at a rate of 47... --- ### Coventry Warwickshire First > John Rimmer is Chair of professionals networking group Coventry Warwickshire First. Here he looks back on the whole of 2022 - Published: 2022-12-22 - Modified: 2024-05-10 - URL: https://www.briuk.co.uk/coventry-warwickshire-first/ - Categories: BRI, Local News 22 December 2022: John Rimmer is Chair of professionals networking group Coventry Warwickshire First. Here he looks back on the whole of 2022 and his first six months in office - please do click here to find out more. --- ### Will I still get statutory maternity pay once a company goes into liquidation? - Published: 2022-12-21 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/will-i-still-get-statutory-maternity-pay-once-a-company-goes-into-liquidation/ - Categories: Creditors, Insolvency 21 December 2022: As a company enters liquidation and where employees are made redundant there are usually monies owed to employees. During an insolvent liquidation, the employees become creditors for unpaid wages, holiday pay, pay in lieu of notice, redundancy pay and other outstanding amounts. Employees are able to make a claim for statutory entitlements; however, as the company is likely to be unable to pay these liabilities, employees can claim through the Government’s redundancy payments service. The process for an employee that is on statutory maternity pay (“SMP”) is not quite the same when their employer enters an insolvency procedure. Until the day of insolvency, it remains the responsibility of the employer to pay all maternity payments. Once the company has formally entered insolvency, HMRC will cover the statutory maternity payments that are due to the employee. However, if the insolvent company is unable to pay its employees (for example due to lack of funds) but is not yet in a formal insolvency procedure, then employees should contact HMRC disputes team on 0300 322 9422. If for some reason HMRC are unable to help, then you should contact the insolvency practitioner (once they are appointed) as soon as possible and request a claim form. If the insolvent business cannot be recovered, the assets of the business will be sold to repay creditors and the employees will become a preferential creditor of the company for part of their debt with the remainder being a non-preferential debt. This means that part... --- ### Hark! A trumpet being blown > How BRI do not divert from their promise to contacts; to give the right advice first time every time regardless of the fee outcome for us. - Published: 2022-12-14 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/hark-a-trumpet-being-blown/ - Categories: Creditors, Local News, Success Stories 14 December 2022: Indeed it is and why not. It has been stated in several recent articles that due to current economic conditions, 2023 is expected to see many company failures. Though some may say this is good news for us, we are very aware these are difficult times for many. Such economic conditions were highlighted during a recent telephone call with a regular contact. The call was from an accountant with a clearly insolvent client who had little option but to be wound up. During the call we were able to illustrate exactly the type of service we provide and approach we take at BRI. Now, unfortunately this isn’t a story of a Christmas miracle with BRI guidance enabling a turnaround in fortunes, all creditors paid, a sizable profit made and tiny Tim surviving the winter. It is however, a story of how BRI do not divert from their promise to contacts; to give the right advice first time every time regardless of the fee outcome for us. The company in question had an outstanding bounce back loan along with a few other creditor pressures and very limited assets with which to find a solution. Nevertheless our advice to the accountant encompassed all of the available options, along with the relevant costs, timings and chances of success of each. Ultimately a way forward for the company was recommended that did not involve the services of BRI. The accountant was very grateful that we were prepared to consider all options,... --- ### Survey of SME marketplace – of concern for the UK economy? - Published: 2022-11-21 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/survey-of-sme-marketplace-of-concern-for-the-uk-economy/ - Categories: Economy, News 21 November 2022: The British Chambers of Commerce (“BCC”) have published their economic survey for the third quarter of 2022 which includes responses from more than 5,200 firms. Of this sample, approximately 92% are within BRI’s chosen market of small and medium-sized enterprises (“SME”). It must be noted that these results are prior to Kwasi Kwarteng’s “mini-budget” (together with its subsequent reversal) and the raising of the base rate by the Bank of England by 0. 75% to 3. 00% (the largest single increase for over three decades). Whilst more recent issues have not been taken into account, it is striking that confidence has significantly reduced since the BCC’s previous survey. Concerns over macro-economic factors within the survey included inflation (84% advised this to be of increasing concern) and over one-third were worried about future interest rate rises. For businesses importing raw materials or products from overseas, the fluctuating value of Sterling (particularly the reduction in value in the immediate aftermath of the mini-budget) will have made budgeting and forecasting together with the setting of prices particularly challenging. In addition, this survey identified that the sectors that have been particularly hard hit are those within retail/wholesale and hospitality. By way of example, 71% of hospitality businesses advised that they are not operating at full capacity. It will be interesting to see whether upcoming major sporting events can provide some respite for this sector in the current quarter. For approximately 40 years, BRI has primarily worked in the SME marketplace providing... --- ### Retail is dead - Published: 2022-11-15 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/retail-is-dead/ - Categories: Economy, Insolvency, News 15 November 2022: If you have read any press recently you would be led to believe that retail is dead. This statement has been made many times over the years, but typically in reference to those with physical (bricks and mortar) high street stores and the associated high costs that go with them. It used to be said that the high street could not compete with the shopping centres and more recently those which sell online only. The high street typically has higher rent, higher rates and is often less accessible due to parking constraints. However the recent demise of many online retailers such as Made. com and Misguided has affirmed that the challenging market which retailers find themselves in is not limited to the traditional high street retailer but includes even those that offer a partial or full online offering. With things looking set to get tougher before they get easier, taking advice early is key. If you are in business as a retailer or supplier into that sector and are concerned about your company’s exposure or financial position please do call one of the management team at BRI Business Recovery and Insolvency. We provide a free discussion to see what options you have and how we can assist you to survive https://www. briuk. co. uk/contact/ --- ### Attention All Accountants: When are distributable funds no longer distributable? > When are distributable funds no longer distributable? The answer to that question is not clear cut but a sliding scale - Published: 2022-11-02 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/attention-all-accountants-when-are-distributable-funds-no-longer-distributable/ - Categories: Directors, Insolvency, News 2 November 2022: Making big waves in the insolvency world in recent weeks has been the Supreme Court judgment in the case of BTI (2014) LLC vs Sequana SA and others. ‘So what? ’ you would be forgiven for thinking. Well, the so what is that the judgment in this matter, despite not finding in the appellants favour, it did move the goalposts with respect to a directors responsibility to creditors and the additional consideration required when a company declares a dividend. When are distributable funds no longer distributable? Without going into any great detail on the facts of the case – there are many articles to search which do this – the central issue relates to the validity of a distribution made to a shareholder in light of the possibility of future insolvency of the company, albeit a very uncertain possibility due to potential, and as yet unquantified, liabilities. The judgment said that a directors’ duty to creditors is not separate to their fiduciary duty and is indeed a subset of it. The issue is the trigger point at which the duty to creditors supersedes the duty to shareholders. The answer to that question is not clear cut but a sliding scale is suggested whereby the duty to creditors gains credence as the possibility of insolvency draws closer. The defence in this case was that the dividend paid to the shareholder was valid on the grounds that it complied with the companies act with sufficient reserves at the time... --- ### Everyone has an interest in rates > Interest rates rising are good for savers, bad for borrowers. If your business relies on borrowing to support cash flow, talk to BRI. - Published: 2022-10-26 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/everyone-has-an-interest-in-rates/ - Categories: Directors, Economy, News, Recovery Interest rates are on the rise, good for savers, bad for borrowers. 26 October 2022: Interest rates have been unusually low since the financial crisis in 2008. This created one of the cheapest ever times to borrow money. This was great news for borrowers but terrible news for savers... until now. The low rates will no doubt have created some of the most casual approaches to borrowing from those that have not experienced higher interest rates before. Pre financial crisis interest rates peaked at 5. 75% in 2007. For those that remember much further back to the previous peaks of almost 15% in the late 80s/early 90s and 17% in the early 80s make the current situation pale into comparison. One of the big drivers of interest rate changes is inflation. When inflation is high, one of the Bank of England tools at its disposal is to push up rates to try to decrease spending which in turn creates less demand. This happens because people tend to be more cautious when times are hard and try to save rather than spend. As spending decreases, demand for goods and services falls, and the pace of price rises slows thereby reducing inflation. The Bank of England’s target for inflation is 2% and they will adjust interest rates accordingly until we get back to target. For business owners who rely on borrowing to support their cash flow, be that in the form of overdrafts, loans, asset/debtor finance or credit cards then the cost... --- ### Aggressive creditor > We have seen directors being taken to Court for failing to comply with their fiduciary duties in respect of meeting CH filing deadlines. - Published: 2022-10-17 - Modified: 2024-05-10 - URL: https://www.briuk.co.uk/aggressive-creditor/ - Categories: Creditors, Directors, News 17 October 2022: You probably wouldn’t associate Companies House (“CH”) with the term Aggressive Creditor. However, we have noticed an increase in the action being taken by CH in the form of County Court Judgements being filed for late filing penalties. In addition, we have also seen directors being taken to Court (personally) for failing to comply with their fiduciary duties in respect of meeting CH filing deadlines. CH guidance has always stated (extract below from CH website): Not filing your confirmation statements, annual returns or accounts is a criminal offence - and directors or LLP designated members could be personally fined in the criminal courts. Failing to pay your late filing penalty can result in enforcement proceedings. Any criminal proceedings for not filing confirmation statements, annual returns or accounts is separate from (and in addition to) any late filing penalties issued by Companies House against the company. There’s no penalty for filing your confirmation statements or annual returns late - but the registrar could take steps to strike off your company. But it would appear that they have only been enforcing this criminal penalty recently. The current penalties are (extract from CH website): Length of period (measured from the date the accounts are due) Penalty for a private company or LLP Penalty for a public company Not more than 1 month £150 £750 More than 1 month but not more than 3 months £375 £1,500 More than 3 months but not more than 6 months £750 £3,000 More than... --- ### LATE PAYMENTS TO SMEs CONTINUING > Research shows that approximately 30 per cent of payments to small businesses are late which can have a serious adverse impact on cash flow. - Published: 2022-10-03 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/late-payments-to-smes-continuing/ - Categories: BRI, Recovery, Success Stories 3 October 2022: Under statutory legislation, there are two tests as to whether a company is insolvent. These are often broadly referred to as the “balance sheet test” and the “cash flow test”. In BRI’s firm wide experience spanning 40 years, a greater proportion of companies fail because they are unable to honour payments as and when they fall due. Having said that, the liabilities of these companies often exceed total assets meaning they fail the balance sheet test as well. One key aspect of rescuing a company is generating sufficient cash to finance continued trading. In difficult times, directors have often already taken proactive action to review costs and to reduce these, where possible, in a multitude of different ways. Directors should also look at monies tied up in working capital including debtors and, depending on the business, possibly stocks and work in progress. Continuing research by the Federation of Small Businesses over a number of years shows that approximately 30 per cent of payments to small businesses are late which can have a serious adverse impact on cash flow. These effects combined with the significant increase in costs for most businesses together with the reported difficulties in SMEs accessing lending has resulted in many companies struggling financially in such a challenging economic backdrop. Whilst by no means an exhaustive list, some practical steps to mitigate late payments from customers include: Check each client’s credit history as part of initially taking on a customer together with periodic checks for... --- ### A Hive (down) of activity > We are all busy bees here at the BRI hive with enquiries continuing to be received regarding a range of matters. - Published: 2022-09-20 - Modified: 2024-04-26 - URL: https://www.briuk.co.uk/a-hive-down-of-activity/ - Categories: BRI, Directors, Insolvency, Liquidation, Recovery, Success Stories 20 September 2022: We are all busy bees here at the BRI hive with enquiries continuing to be received regarding a range of matters. Being both small enough to care and large enough to handle more complex matters, we are well positioned to deal with companies of all shapes and sizes. One recent enquiry in particular had us delving deep into our knowledge banks to utilise a lesser known device found within the corporate insolvency tool bag; the hive down option. The hiving down of an insolvent company’s assets to a subsidiary is a mechanism that is available to insolvency office holders. Once assets have been transferred, the shares of the subsidiary can then be purchased by an interested party who wish to obtain the assets via a corporate vehicle not laden with liabilities. A sale of assets via this method can sustain trade which in turn saves jobs, gives suppliers and customers a new business to trade with, while also achieving the best value for the insolvent estate’s assets. The process isn’t without challenges with potential downsides including the costs of the process and contractual terms which may not allow for certain assets or agreements to be assigned to the newly formed subsidiary. However, it is a means of achieving best value for assets that should not be ignored. It is hoped the above demonstrates that there are many strings to an office holder’s bow and here at BRI we make sure that every one of them is considered... --- ### Propping up the bar > Concerned over your business’ ability to weather economic conditions while maintaining payments to creditors? Contact BRI for free advice. - Published: 2022-09-08 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/propping-up-the-bar/ - Categories: Creditors, Directors, Economy, Insolvency, News 8 September 2022: The hospitality industry was, for obvious reasons, one of the sectors worst affected by the pandemic. It seems that no sooner had life returned to normality and the public were finally able to enjoy a drink or a meal unstifled by facemasks and social distancing, the already-struggling industry faces another, potentially more serious existential threat in the form of the economic crisis with its attendant skyrocketing overheads and the dampening down of customer spending on leisure. Recent research has found that 35% of pub operators have experienced a doubling of their utility costs during 2022, while 30% have reported a tripling in expenditure. Furthermore, even those operators able to withstand these increases have apparently experienced difficulties in securing new power supply contracts due to the hospitality sector currently being perceived as ‘high risk’. According to the research, the extremely grim conclusion reached by 70% of operators is that their businesses will not survive the winter unless the state acts to ease energy prices. The Society of Independent Brewers (SIBA) and the Campaign For Real Ale (CAMRA) have recently alerted the Government to the extreme challenges that currently face the pub trade. Both organisations have appealed for intervention to help relieve the pressure on operators, specifically an urgent cap on energy prices and the provision of grants to meet the cost of technology that will provide greater efficiency and, ultimately, cut bills. In addition, reductions to VAT and business rates as well as the immediate introduction of the... --- ### HMRC engagement in CVAs - Published: 2022-08-25 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/hmrc-engagement-in-cvas/ - Categories: BRI, HMRC, Insolvency, Recovery 25 August 2022: A company voluntary arrangement (“CVA”), is generally, an insolvency procedure that tries to help a company recover and avoid formal liquidation. It is a flexible “tool” available to insolvency practitioners. BRI has previously provided updates on a CVA being dealt with by our Northampton office, which resulted in substantial dividends being paid to HMRC and other creditors. Whilst HMRC is typically a creditor in most CVAs, they have not always exercised their right to vote. If HMRC is one of the largest creditors and do not vote, CVAs can be approved (or rejected) by smaller creditors. This could result in a rejection when a CVA represents a much better outcome for all creditors than a creditors’ voluntary liquidation (the alternative outcome compared to the proposed CVA). Insolvency practitioners have been advised that HMRC will be more proactive going forward in that they will vote on the proposals (the detailed document sent to creditors setting out the terms of the voluntary arrangement). Ministerial commitment has also been pledged in that HMRC will take a commercial approach to voluntary arrangement proposals provided to them. BRI is committed to rescuing businesses and will assist with the implementation of a restructuring where this is a viable option and represents the best deal for all creditors, together with other key stakeholders. Understanding the requirements of the largest creditors (for example trade creditors, HMRC, landlords and financial institutions) together with the drafting of proposals to deal with creditors’ concerns is a vital part... --- ### Any room at the (Hitch)INN? > We have recently added two new faces to our Hitchin office, those faces belong to Insolvency Practitioner Alastair Fish and Emma Johnson - Published: 2022-08-18 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/any-room-at-the-hitchinn/ - Categories: BRI, Local News, Success Stories 18 August 2022: Far be it for us to blow our own trumpet... but now and again, why not! We have recently added two new faces to our Hitchin office, those faces belonging to qualified Insolvency Practitioner Alastair Fish and our most recent recruit Emma Johnson, a senior insolvency administrator. After expanding the team at BRI, our Milton Keynes based Insolvency Practitioner, Tom Guthrie, commented “These new additions to our Hitchin office will only serve to increase our offering and presence within the Hertfordshire, Bedfordshire and Buckinghamshire market. Both Alastair and Emma bring with them over 23 years of experience of working in this industry, so it is great news for BRI. As a firm we pride ourselves on the quality of service we provide, thereby we are pleased to have found individuals with significant prior experience to help us in meeting this goal”. The current economic pressures are making it very challenging times for many businesses, so we recognise the importance that BRI need to be ready to help and support businesses when it feels like the cards are stacked against them. As ever, the purpose of growing our teams and presence is so that we may achieve the core aim of BRI; which is to provide a service to clients which ensures the right advice first time every time regardless of the fee income for ourselves. Therefore, if you or your clients require a critical friend please do not hesitate to contact us and we will be more... --- ### Biggest interest rate increase in 27 years > We have seen the biggest interest rate increase in 27 years. The Bank of England has increased interest rates to 1.75% from 1.25%. - Published: 2022-08-11 - Modified: 2024-05-10 - URL: https://www.briuk.co.uk/biggest-interest-rate-increase-in-27-years/ - Categories: Economy, Insolvency, News 11 August 2022: We have seen the biggest interest rate increase in 27 years. The Bank of England has increased interest rates to 1. 75% from 1. 25% as of 3 August 2022. This is mainly due to the increasing costs of energy, fuel and food costs. It's the sixth time in a row the Bank of England has raised borrowing costs to encourage people to both borrow and spend less. Inflation is already at 9. 4% which is the highest level it has been for 40 years and is expected to rise further later this year. The idea behind the increasing interest rates is to try to control the rising prices as people tend to spend less and save more. The interest rates increase also has an impact on the cost of borrowing and so the increase is also an attempt to deter people from lending. What are the impacts for me? Small Businesses - Interest rates can have a significant impact on businesses that are borrowing cash, which will increase the amount being paid for a loan and in turn, increase overheads and put pressure on cash flow. In addition, suppliers could also up their costs to help cover rising interest, which would also impact profit. The assumption is that businesses will raise their prices in order to make a profit and cover demands for wage increases from their employees and to cover the increasing costs of their overheads. The impact of this would mean that the Bank... --- ### A second helping of struggles please waiter! - Published: 2022-08-05 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/a-second-helping-of-struggles-please-waiter/ - Categories: Economy, Insolvency 5 August 2022: As we all know, the hospitality sector, including restaurants, was probably hit the hardest financially by Covid-19 given the various lockdowns/safe guards put in place during 2020 and 2021 and a decrease in footfall and custom came as a direct result. Luckily, once restrictions eased, many restaurants tried to adapt and eventually started to offer take-away services, which no doubt helped, but by the time these changes were made, the damage had already been done for some. In the past year or so, with no more lockdowns and the easing of safety measures, people have been re-visiting their favourite restaurants and custom has increased, which is obviously great news for the industry and many restaurateurs. However, fast forward to the current day there now is another problem restaurants have to contend with - rising inflation and household bills. Not only does the rising inflation directly impact restaurants as the price of food and drink increases but it also affects their main customers; the everyday person. With rising inflation and increase in household bills, the disposable income of each individual is decreasing and therefore one of the luxuries we all have as individuals, such as going out to eat in your favourite restaurant, is one of the first things to be cut from the weekly/monthly budget, resulting in further struggles for restaurants. During Covid-19, one of the major factors in restaurants staying afloat was thanks to the Government support. However, will they come to the rescue again because... --- ### Are directors benefitting from limited liability? > Are directors benefiting from limited liability? Find out more about our industry experience on this topic here. - Published: 2022-08-02 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/are-directors-benefitting-from-limited-liability/ - Categories: Bankruptcy, Creditors, Directors, Insolvency 2 August 2022: Are directors benefitting from limited liability? Often, one of the main benefits to directors in incorporating a company (or in some cases, a limited liability partnership) is limited liability in the event of a formal insolvency process. This contrasts sharply with a sole trader where liability is unlimited which effectively means that personal assets may be called upon to pay creditors. In a partnership, each partner is jointly and severally liable. However, for owner managed businesses in the SME marketplace, directors may not always benefit from limited liability if they have provided a personal guarantee to a creditor. Typically, these were commonly provided where a company had taken out an unsecured loan or purchased assets on either hire purchase or some other form of finance agreement. We are now seeing that personal guarantees have extended to other suppliers, including trade creditors. Where a trade creditor supplies stock to a business, a personal guarantee may be included in the supplier’s standard terms and conditions that form part of a credit application. Another common example is the inclusion of a personal guarantee in an engagement letter. The provision of a personal guarantee may have a significant impact on a director’s personal financial situation and could also have major implications for their family. BRI fully appreciates and understands that, in the SME marketplace, the company’s and the director’s financial position are often entwined. BRI is committed to explaining the different options available to the directors and members of an insolvent... --- ### What can I do for you today sir? > Find out about our commitment to always seeking to provide the right advice first time every time regardless of the fee outcome for ourselves - Published: 2022-07-20 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/what-can-i-do-for-you-today-sir/ - Categories: BRI, Directors, Recovery, Success Stories 20 July 2022: The usual short back and sides please. Of course sir but, whilst you are here, any chance you can save my business? We’ve only gone and done it again. A company director was recommended to speak to BRI with a view to liquidating a hairdressers. During an initial chat, which didn’t involve “going anywhere nice on your holidays? ”, it was possible to identify an opportunity to cut costs sufficient enough to give the company time to trade on and explore a potential sale of the business. This time proved very valuable to the company as it was subsequently able to market and then sell the trading business for fair value. With the goodwill of the business having been preserved due to the continued trade, a better sale price for the business was achieved than is likely in an insolvency process (quite possibly no realisation would have been made in a liquidation) while the continued employment of staff was also assured. What we would call a ‘win, win’ scenario. In addition to the above the director, despite no longer having the business which had been sold, was able to create a revenue stream via the rent that was now being received from the business continuing to operate from the premises which he owned. The above situation represents the exact type of outcome that we are always so glad to achieve for our clients. Did it result in a fee for BRI? No. Did it achieve the best... --- ### Plight of the living dead - Published: 2022-07-18 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/plight-of-the-living-dead/ - Categories: BRI, Creditors, Directors, Economy, Insolvency 18 July 2022: Soaring energy bills, issues with supply chains, increased fuel costs and reduced consumer confidence are just some of the post-Covid reasons why many businesses are struggling and scraping through each day. As a result, many businesses, who are already heavily indebted as a result of Covid, are seeing little to no growth and can barely pay the interest on the debts they have. These are what we call ‘Zombie’ companies; companies that are not profitable or viable and can only just make repayments against debts/interest but continue to trade, seemingly with no positive future on the horizon. Now that the Government support - bounce back loans (BBLs) & coronavirus business interruption loans (CBILs) (amongst other support) are being repaid, it is estimated that there are a large number of ‘Zombie’ companies in the UK at the moment and there could be a mass fall down in the not so near future. BRI are specialists in insolvency and it is vitally important that the director(s) of Zombie companies do their best in trying to protect the creditors, as well as themselves, from the financial position of their company becoming worse and it is highly advised that they seek advice as early as possible to discuss their options. If you, or a client, believes your/your client’s company is a Zombie company and is struggling to get through each day, the best advice is to seek advice. Please contact us for a free and without obligation meeting or conversation and... --- ### Insolvency figures climb during the second quarter of 2022 - Published: 2022-07-13 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/insolvency-figures-climb-during-the-second-quarter-of-2022/ - Categories: Economy, News 13 July 2022: As we are now half way through the year, it is reported that the number of corporate insolvencies are higher compared to those in the second quarter of 2021. The number of corporate insolvencies were roughly similar in the first quarter when comparing 2021 and 2022. However, Government statistics show that there is a significant increase in corporate insolvencies in April 2022 compared with April 2021. April 2021 April 2022 Creditors Voluntary Liquidation 819 1,777 Compulsory liquidations 26 91 Administrations 75 113 Company Voluntary Arrangements 5 10 Total insolvencies 925 1,991 (source: Gov. uk) In May 2021, 1,011 companies formally entered an insolvency procedure; however, that number rose by almost 80% in May 2022, with 1,817 companies entering insolvency. May 2021 May 2022 Creditors Voluntary Liquidation 930 1,584 Compulsory liquidations 31 135 Administrations 43 84 Company Voluntary Arrangements 6 14 Total insolvencies 1,011 1,817 (source: Gov. uk) Previously, Government support schemes were in place to help companies stay afloat. For example, research carried out by the House of Commons have shown that a total of £70 billion was claimed under the Coronavirus Job Retention scheme for claims up to November 2021. However, as these support schemes are now closed and with increases in inflation and energy costs hitting firms, there is growing pressure on companies. Furthermore, the removal of temporary restrictions on presenting winding-up petitions from 1 March 2020 could be another relevant factor. During the pandemic, the Government had placed temporary restrictions on creditors regarding presenting... --- ### BRI Charity Day 2022 > BRI Charity Day 2022: Earlier this month the staff from BRI took part in their first annual charity day since the Coronavirus pandemic - Published: 2022-07-11 - Modified: 2024-05-10 - URL: https://www.briuk.co.uk/bri-charity-day-2022/ - Categories: BRI, Local News 11 July 2022: Earlier this month the staff from BRI took part in their first annual charity day since the Coronavirus pandemic. This year BRI volunteered at the Coventry Foodbank/Feed the Hungry in Coventry. This Foodbank is a project founded by local churches and community groups and aims to provide their clients with three days’ worth of emergency food along with other support beyond food, and fed over 34,500 people through the Pandemic up to March 2021. The donation centre receives quantities of food items, which are donated by members of the public and local supermarkets. More and more people are turning to the Foodbank for help as a result of the rise in the cost of living and now with the War in Ukraine but unfortunately, donations have dramatically decreased. BRI’s volunteers were split into two groups, the first group had the task of checking the sell by dates of each food item before sorting them into various categories, for example, beans, noodles, pasta and rice but to name a few. BRI’s second team were given the task of tidying and sorting out the crates into colour order in the yard. Our team thoroughly enjoyed the volunteering experience on the day; they worked extremely hard and definitely managed to get their steps in! At BRI we take pride in being able to help others in their time of need. We are most grateful to be able to help the Foodbank for this worthwhile cause and this day gave us... --- ### Howzat for networking! - Published: 2022-07-08 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/howzat-for-networking/ - Categories: BRI, Events, Local News 8 July 2022: In May and June we hosted 2 of the 3 scheduled BRI cricket matches of 2022 at Boughton Cricket Club where local professionals from a range of industries grace the wicket for a fun and informal cricket match and all enjoy a portion of fish and chips in the sun to discuss the 4s, 6s and dodgy bowling afterwards. Both events have had 22+ players with a mix of abilities and this year we have also been treated to some professionals coming along to watch as they preferred not to play. Given these one day matches are held in the (not so) sunny English summer, we have been very lucky with the weather and at no point have the games been halted due to rain or bad light! Our 3rd and final match of the test series is on 28 July 2022 and we are really looking forward to yet another great networking event. Thank you to all of our valued contacts for supporting the event. --- ### Don’t get in a tizz! - Published: 2022-07-07 - Modified: 2024-03-20 - URL: https://www.briuk.co.uk/dont-get-in-a-tizz/ - Categories: Directors, News 7 July 2022: Figures released by The Insolvency Service (“TIS”) show that in 2021/22, 801 directors were disqualified under the Company Directors Disqualification Act 1986 (“CDDA”). This figure was lower than 2020/21. TIS advised that both years are lower than previous averages for 2013/14 to 2019/20 which were between 1,200 and 1,300. This is in keeping with fewer company insolvencies reported by TIS for the same two year period. In contrast, TIS illustrated that the average length of disqualification for 2021/22 was 5 years 10 months. For the last 10 years, this average has been between 5 years 5 months and 6 years. However, these figures only portray part of the picture in that there are many more investigations opened by TIS regarding the conduct of the directors in the period leading up to insolvency. Receipt of a letter from TIS advising their intention to investigate is understandably a highly stressful time for a director. TIS’ investigation can either be on a civil or criminal basis with potential disqualification for the director or, in some cases, a custodial sentence. The outcome will depend on the specific facts of the case. It is therefore important that directors take swift action following receipt of TIS’ letter. Lawyers and professionals specialising in this area can ensure that targeted action is taken. If TIS receive a robust written rebuttal (by either the director or their appointed professional advisor) setting out how a director has acted in creditors’ best interests and in accordance with relevant... --- ### BRI’s Hitchin office celebrates 10 years and a new addition to the team > BRI’s Hitchin office celebrates 10 years and a new addition to the team. Read the ful story on our website - Published: 2022-05-25 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/bris-hitchin-office-celebrates-10-years-and-a-new-addition-to-the-team/ - Categories: BRI, Local News, Success Stories 25 May 2022: As some of you may recall, BRI Business Recovery and Insolvency opened its Hitchin office on 1st February 2012. Since then, Hitchin office has grown from strength to strength. In keeping with this, BRI is pleased to announce that it has taken on Alastair Fish as an Insolvency Manager. Alastair will primarily work in Hitchin but will also help our Milton Keynes office as and when required. Alastair has been working in insolvency since 2005 when he joined Grant Thornton’s Cambridge team. Alastair has also worked at BDO and as a sole insolvency practitioner in both Cambridge and Hertfordshire. He is looking forward to working closely with the existing management team to further BRI’s expansion. As with other BRI offices located at Banbury, Coventry, Milton Keynes, Spalding and Northampton, a pre-requisite of Hitchin’s success has been to serve the local community and to build strong relationships with local accountants, solicitors and other business professionals. The work has continued to flow, with introducers recognising and appreciating that their clients are always in good hands with BRI in that best advice is given, irrespective of whether BRI receives a fee or not. All insolvency practitioners and staff within BRI are committed to providing the right advice, first time, every time. As a thank you to all those who have introduced prospects and potential clients to BRI, we held our anniversary celebrations in May. It was great to see so many of you face-to-face and to be able to share... --- ### Cryptocurrency and insolvency - Published: 2022-05-19 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/cryptocurrency-and-insolvency/ - Categories: Directors, Insolvency 19 May 2022: After explosive growth over the last few years, an increasing number of companies and businesses are taking cryptocurrency seriously as either a method of payment or as an investment. For example, Starbucks, Tesla and PayPal are starting to accept cryptocurrency as payment. Inevitably, as more and more businesses handle cryptocurrency it will become more prevalent as a potential asset in insolvency. Cryptocurrency comes with its own jargon and processes, which can put people off from dealing with it, but this isn’t a reason for insolvency practitioners to ignore what could be a valuable asset of benefit to creditors. Due the nature of their work, insolvency practitioners are very good at being nimble and creative when it comes to dealing with businesses in financial difficulties, particularly as gone are the days of a company having a nice and tidy set of unencumbered physical assets, meaning intangible assets now take on a much greater importance. Having to potentially deal with cryptocurrency is no different. If cryptocurrency is identified from, perhaps, a review of the company’s bank statements showing transfers to a cryptocurrency exchange, or finding a crypto key on a USB stick within the company’s books and records, an insolvency practitioner must quickly take steps to secure and preserve it. Also, it might not be that the company has cryptocurrency in its possession at the date of insolvency. A transfer of cryptocurrency may have been made shortly prior to the company’s insolvency in which case an insolvency practitioner will... --- ### Double (double) fault – insolvency service taking action - Published: 2022-05-11 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/double-double-fault-insolvency-service-taking-action/ - Categories: Bankruptcy, Directors, Insolvency, News 11 May 2022: Unless you are particularly averse to current affairs you will have no doubt come across the sorry fall from grace of tennis great, Boris Becker. The former world number one has been convicted of no less than four offences under insolvency legislation, which led to his conviction and custodial sentence. However, Mr Becker is not the only individual falling foul of the Insolvency laws recently. Moving from personal insolvency to corporate, we have noticed a slew of recent cases whereby the Courts have deemed it appropriate to impose strong sanctions against company directors who have breached rules and regulations. The offences committed by the relevant directors have ranged from a failure to preserve adequate accounting records, to a failure to cooperate with the office holder, all the way through to an investment scam and falsification of turnover to obtain a bounce back loan. Sentences for these various offences (or combination of offences) have seen disqualified orders for periods ranging from six to eleven years. When considering an application for disqualification of a company director, the insolvency service will always be looking at a range of factors; such as their culpability for the insolvency of the company, examples of a failure to meet their fiduciary duties and material breaches of legislative obligations. Disqualification orders can be made for periods of between two and fifteen years, therefore it is clear that the Courts considered the above offences to be serious enough to warrant stern sentences. The above examples are... --- ### The Liquidator: Lifting the Veil of Mystery - Published: 2022-05-06 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/the-liquidator-lifting-the-veil-of-mystery/ - Categories: BRI, Insolvency 6 May 2022: As with many aspects of the insolvency world, the average person will have little if any knowledge as regards the role of the liquidator and what it takes to achieve that title. It is, perhaps, the ominous, mysterious ring of the term that dissuades many from delving into the subject. Or, more likely, it’s the fact that no director wants to confront the subject unless they really have to, i. e. in the event of financial difficulties. If you chose to instruct a private firm to undertake the liquidation of your company, a licenced insolvency practitioner will bear the ultimate responsibility for the management of the process. This is a legal requirement in the UK. Only those holding the necessary licence from an authorising body can offer the service and, if appointed with the consent of creditors, act as a liquidator in voluntary liquidation cases. Often insolvency practitioners will have a background in the accountancy profession, however, to make the career transition, applicants will need to pass two exams set by the Joint Insolvency Examination Board. They will also need to provide sufficient evidence of practical experience in the workplace to satisfy the authorising body’s criteria. If successful, the applicant will be issued with a licence and join the ranks of 1,700-plus insolvency practitioners operating in the UK. Due to the complexity of insolvency legislation, not to mention the myriad business scenarios that will be encountered, the practitioner’s knowledge base and skills will develop over time, with... --- ### Limited Liability – Trapped Directors - Published: 2022-04-27 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/limited-liability-trapped-directors/ - Categories: Directors, Insolvency, Liquidation 27 April 2022: A limited company gives owner managers/ directors protection from the business liabilities of a company. Sole traders/ partners would otherwise be personally liable for all the business debts. If the company goes bust, the directors’ finances including any personal assets are separate from that of the company. They are protected from the creditors of the limited company. But beware of the traps ... There are limitations to this principle and below are a few examples. Secured lending A director seeking a fixed and floating charge loan from a bank may be asked to give additional security on top of securing the assets of the company. This additional security may be over the director’s residential home or other assets. If the company is liquidated, the lender can first pursue the company and the business assets and can then pursue the director’s’ personal assets for any shortfalls. Overdrafts and unsecured loans In many cases, directors that are given unsecured lending by a bank/financial institute will be asked to sign personal guarantees. Always read the small print before signing any documentation. Financed assets Directors that purchase assets for the limited company on finance also need to be aware of the small print. They may be purchasing plant and machinery as part of an asset finance agreement for the company but need to look out for the personal guarantees. Specifically financed vehicles in most cases will have the name of the director on the paperwork and the director in many cases... --- ### I can’t repay my bounce back loan… - Published: 2022-04-20 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/i-cant-repay-my-bounce-back-loan/ - Categories: Directors, Economy, Insolvency, News ... is one of the most common client problems we hear at the minute. 20 April 2022: The availability and ease of obtaining government backed loans was immense. Nobody quite knew what the future held and so, as a precaution, many businesses applied for these. Some of the benefits were: No setup fees to pay (at least none that the borrower paid, the government sorted those out) Interest rates were low No formal application process or business plan to submit You didn’t have to make the first repayment until 12 months later No personal guarantees required However it’s not always quite so easy when it comes to repaying the loans. In the 12 month period between getting the loan and having to repay it the funds may have been spent and the business may still not be generating surplus cash each month. Someone that borrowed £50k would be looking at repayments of just over £900 per month. Thankfully some help is at hand. To ease the financial burden on those borrowers the government have allowed them to: Extend the loan period from 6 to 10 years Seek a repayment holiday for up to 6 months (you can do this once) Move to interest only repayments for a period up to 6 months (you can do this up to three times) Borrowers should certainly contact their lender to discuss any support that might be available to them and lenders should be supportive of this approach. Despite the generous repayment options, a... --- ### Die? That’s the last thing I’ll do! - Published: 2022-04-13 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/die-thats-the-last-thing-ill-do/ - Categories: Bankruptcy, BRI, Directors, Insolvency 13 April 2022: Being a director of a small company, especially where you are the sole director, can be a very lonely place. Imagine, then, how lonely it would be for whoever has to step in should you die. Not a nice subject to contemplate but pertinent for the small business owner nevertheless. When working you always considered that your business was your pension and that it would look after you and your loved ones after you finally called it a day. But what if you don’t get to choose the date of your departure? At BRI we are often confronted with a situation that could have been provided for but wasn’t. News Flash: We are all, at some point, going to die. Death and taxes etc. It’s one of the certainties. Why then do we not plan for it? If you fail to plan, plan to fail. If you want the value of your business to survive the trifle that is your passing, put provisions in place. If your life partner has left on an earlier bus than expected – give us a call, bring a copy of any wills and business documents and we will do what we can to sort out what, normally, is referred to as a buggers muddle. Our ability to do this derives from experience of having dealt with many similar situations during which, despite the humour above, we have handled with care those who are grieving in order to help resolve the difficulties... --- ### The Rocky Road to Recovery - Published: 2022-04-06 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/the-rocky-road-to-recovery/ - Categories: Creditors, HMRC, Insolvency, Liquidation, News 6 April 2022: Among a number of Government measures aimed at mitigating against the economic damage caused by COVID-19 lockdowns, the Corporate Insolvency & Governance Act 2020 was intended to support businesses experiencing debt problems due to the effect of restrictions and employee sick absence. Implemented on 25 June 2020, the act introduced a number of temporary adjustments to the insolvency regime. To offer some breathing space to struggling businesses, all statutory demands served between 1 March 2020 and 30 September 2021 were deemed as void while, during the same period, courts were prevented from making winding-up orders if the unpaid debt was attributable to COVID-19. In addition, the monetary threshold for presenting a winding-up petition was increased from £750 to £10,000. With effect from 1 April 2022, the threshold was restored to its pre-COVID level and it remains to be seen if this will result in a surge of creditors submitting petitions to their local county court. While the pandemic does not pose the same health challenges that it did in 2020-2021 and protracted disruption to normal trading is now – hopefully - just a very bad memory, many businesses, particularly in the hospitality trade, are still suffering from the after-effects of those extremely difficult times. In the face of historic increases in utility bills, rampant inflation increasing the costs of other trading overheads and reduced consumer spending affecting turnover, the desperately-needed recovery from the ravages of COVID may well prove to be a long, arduous and anxious one... --- ### Now you see it… - Published: 2022-03-22 - Modified: 2024-03-20 - URL: https://www.briuk.co.uk/now-you-see-it/ - Categories: Directors, Insolvency 22 March 2022: If you have a key piece of plant or machinery and it is stolen or damaged, what would you do? Does the business insurance cover for business interruption as well as the loss. Have you insured for the value or the replacement value? Are you required to purchase the replacement before the insurance will pay out and can your cash-flow withstand the outlay pending payment? It sometimes only takes one wrinkle to trip a company up. We saw a company who wanted to expand and so moved to new premises, only to discover that the power they need to run their machines wasn’t available at the new site. They had to build a sub-station at their own cost and with many associated planning delays. They then discovered that the floor wasn’t strong enough to support their expensive print machinery. The final nail; when the floor was strengthened and re-laid over the Christmas shut down, the moisture from the drying concrete caused all the machinery to rust up solid requiring expensive engineers (from Germany) to come over and sort things. In that case, one wrinkle didn’t do it but three in a row caused the demise of a decades old business. The same can happen with the theft of a key piece of machinery, the illness or death of a key employee or any substantial interruption that you haven’t thought about and mitigated against. What would you do? Who would you bounce your ideas off? Talking to us... --- ### The Challenges of a CVL Process; an inside view - Published: 2022-03-17 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/the-challenges-of-a-cvl-process-an-inside-view/ - Categories: BRI, Creditors, Insolvency, Liquidation 17 March 2022: A Creditors’ Voluntary Liquidation (CVL) is a very technical process which requires a high level of expertise and licensed insolvency practitioners to administer. From an outside view, and on the most superficial level, it may appear that a liquidator arranges for the sale of an insolvent company’s assets and then, after drawing expenses and fees, distributes the remainder of the proceeds to the creditors. Whilst selling the assets and distributing the proceeds to creditors is one of the main purposes of a liquidator, there are many other duties and tasks that need to be dealt with and, almost always, there are numerous other factors outside of our control that can further complicate the liquidation process. Furthermore, during the course of our work, we must comply with many statutory requirements and undertake certain responsibilities which those outside of our profession will no doubt be unaware of. Just as an example, when a company enters CVL, a liquidator is required to collate employee pay information from a company’s records in order for the Redundancy Payments Service (RPS) to assess claims from redundant staff. Where those claims differ from the contents of the records, we can become drawn into protracted correspondence with the employee and the RPS. Due to the often emotive nature of situation, these interactions can be difficult and require careful diplomacy on our part, with due sensitivity to the circumstances of the claimant. Similarly, discussions with creditors as regards purported claims of title over a company’s assets... --- ### Can directors claim for redundancy? - Published: 2022-03-10 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/can-directors-claim-for-redundancy/ - Categories: Creditors, Directors, Insolvency 10 March 2022: A common question we are asked by directors when advising on a company’s options is whether they can claim for redundancy in an insolvency scenario. The short answer is yes but there is a little more to it than that. Using a creditors’ voluntary liquidation (aka insolvent liquidation) as an example, where a company ceases to trade it is usually the case that the company has to make all of its employees redundant. Often, the employees are owed wages and other entitlements, which can be claimed from the Redundancy Payments Service (RPS), a government department that sits within the Insolvency Service. If we were the proposed liquidators, we would arrange for a case to be opened with the RPS so that a unique reference number was obtained and employees could then submit their claims online. Directors can also be employees of a company and therefore entitled to receive any outstanding wages, holiday pay, notice pay and redundancy pay. As such, there is nothing to prevent directors from also submitting claims to the RPS but, given their dual role as officers and employees of the company (potentially they are also shareholders of the company), directors need to be able to demonstrate that they were legitimately employees. The RPS will scrutinise claims from company directors and would expect to see evidence that a director:- Worked a minimum of 16 hours per week; Had a contract of employment or other agreement between them and the company which reflects their employment... --- ### B.R.I.N.G the Action in 2022! > If you want to get involved and B.R.I.N.G the Action this year, please get in touch - we're looking forward to hearing from you - Published: 2022-03-04 - Modified: 2024-01-24 - URL: https://www.briuk.co.uk/b-r-i-n-g-the-action-in-2022/ - Categories: BRI, Events, Local News 4 March 2022: It’s time to B. R. I. N. G. the Action in 2022! BRI have launched a new networking group called BRI NEW GENERATION for early stage professionals in the Milton Keynes and Bedford area. B. R. I. N. G aims to bring together professionals from across Milton Keynes and Bedford who want to break into the networking scene in a relaxed fun environment in order to develop their networking skills and meet with other professionals in the area at a similar level. Launched by members of the Milton Keynes team who themselves are either early on in their insolvency careers or who want to level up their networking skills, the group’s focus is the networking experience for those who may have limited to no networking experience. The group aims to help build up those valuable networking skills now with enjoyable events at local activities while also developing a local network of professionals. If any of the above resonates with you or members of your team, please get in touch and join now! Member spotlight: Please look out for our member spotlight articles, which will provide some background and insight into the founder members of B. R. I. N. G and are due to be shared via our LinkedIn group over the coming weeks. When is the first event? We will be hosting our first event in March 2022! Keep an eye out for updates via email and LinkedIn! How do I get in touch to join the... --- ### You won’t get away with it! - Published: 2022-03-02 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/you-wont-get-away-with-it/ - Categories: Directors, Insolvency, News 2 March 2022: Director bans are being issued by the Insolvency Service for the misuse of the Bounce Back Loans Scheme (BBL). Not only are directors facing disqualification from being directors of companies, they are also having to repay the BBL’s via settlements with the Insolvency Service. Last month two directors fraudulently inflated the company’s turnover to obtain the loans, then went on to use the BBL funds to make monthly payments to four connected individuals. Following liquidation, the investigation by the liquidator unfolded the deception and the fact that the funds were not used for the operational running of the business. The disqualification undertakings the directors agreed to, prevent both of them from directly, or indirectly, becoming involved in the promotion, formation, or management of a company, without the permission of the court. The Insolvency Service will not hesitate to investigate and use its powers against those who appear to have abused the COVID-19 support schemes. Bans for two directors who abused Bounce Back Loan scheme - GOV. UK (www. gov. uk). The link will take you to the details. If you feel you may need to speak to one of BRI’s experienced management team for advice in respect of potential issues you are facing in your business, please do not hesitate to get in touch. --- ### Director’s personal guarantees – what do they mean and how might they affect you? - Published: 2022-02-17 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/directors-personal-guarantees-what-do-they-mean-and-how-might-they-affect-you/ - Categories: Creditors, Directors, Insolvency, News 17 February 2022: A personal guarantee is an agreement that holds a company’s director(s) personally liable if the business is unable to repay money owed. From a lender’s point of view, a personal guarantee makes a loan agreement more secure as the responsibility for paying it back falls not just on the company that borrows the money but also on the individual director(s) who provided the personal guarantee. Typical areas where liabilities might be personally guaranteed are:- Bank loans and overdrafts Invoice discounting facilities The lease to the trading premises Finance leases on equipment and motor vehicles Supplier credit application forms Everyone who signed the guarantee is liable and creditors can request repayment at any time upon default. This means that if you and another person signed the personal guarantee, you are both jointly responsible. If one party does not pay, the lender could force the other to repay the full value. Many directors providing these guarantees typically assume that the lender/creditor would never have any cause to call on the guarantee in a manner that affects their personal assets. However, in the current economic climate, and with many business still suffering due to the effects of the Covid-19 pandemic and impacts of the lockdowns, we are likely to see many instances of personal guarantees being called on to satisfy company debts. In difficult circumstances, this will inevitably lead to directors having to sell personal assets to satisfy debt and/or ultimately face being made bankrupt. Some lenders may agree to... --- ### Rogue director disqualified for 15 years for being a fake Insolvency Practitioner - Published: 2022-02-10 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/rogue-director-disqualified-for-15-years-for-being-a-fake-insolvency-practitioner/ - Categories: Insolvency, News 10 February 2022: Yes, you have read that right. The shadow director of a company posing as an ‘unlicensed insolvency practitioner’ (a title which does not exist in the UK), has received a maximum 15 year ban from acting, directly or indirectly, in the promotion, formation or management of a company without the permission of the court. The shadow director had already been disqualified from acting as a director (hence why he acted as a shadow director of this company) and may face further repercussions as the matter has been passed on to the Director of Public Prosecutions, given that acting as a director whilst disqualified is a criminal offence and he had also deliberately undermined the insolvency regime. So what did he do and how did he do it? From the information made public, the shadow director advertised himself as an unlicensed insolvency practitioner and promised companies in financial difficulty that he would be able to wipe away their business debts and help them avoid formal insolvency proceedings, whilst also assuring directors that they could walk away from any further financial or legal responsibility for their company, which is completely untrue. The company charged between £5,000 and 10% of the failing company’s total liabilities for the privilege of this advice and, of course, no money was ever returned to creditors. With BRI being a firm with a number of fully licensed insolvency practitioners, who are also heavily regulated, the news from this story is alarming to say the least... --- ### BRIGS is back! - Published: 2022-02-02 - Modified: 2024-03-20 - URL: https://www.briuk.co.uk/brigs-is-back/ - Categories: BRI, Local News 2 February 2022: The first BRI Golf Society (BRIGS) of 2022 started this morning at Kettering Golf Club and marks the beginning of the 2022 BRIGS league season. A good turnout of 14 golfers attended from a range of industries and all looked to get some early points on the board to start the season off in style. It was a close game when reviewing the scorecards in the clubhouse but congratulations to Tom Low of Propel Finance who beat Jamie Abbotts of Whitley Stimpson on countback to win overall (enjoy the wine Tom! ), and Luke Passmore of Advantedge Commercial Finance for winning nearest the pin and a sleeve of golf balls. Although he lost on countback, Jamie Abbotts still managed to win a prize consisting of some Titleist Pro V1 golf balls and tees which Tom kindly donated as a prize - thank you! Thanks to all that attended, it was a great morning and feels good to be back out there with everyone. Hopefully see you all next month at Kingsthorpe Golf Club! --- ### Inflation – what is it and how can it affect my business? - Published: 2022-01-24 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/inflation-what-is-it-and-how-can-it-affect-my-business/ - Categories: Economy, News 24 January 2022: Inflation is the rate at which prices are rising. As of December 2021, the rate of inflation in the UK had risen to 5. 4% - according to the Bank of England this was expected to peak at 5% but not until April of 2022. The rate of increase is the highest since March 1992 and the main reason for this is due to the rising price of energy. This has meant higher energy and transport bills for businesses, many of whom pass on the extra costs to customers. In addition, supply problems and higher shipping costs also continue to impact on businesses. In 2021, up to November, regular pay, excluding bonuses and adjusted for inflation, fell 1% meaning that wages are failing to keep up with cost of living. A number of other developments are expected to hit the UK this year, putting further pressures on finances, such as:- Regulated rail fares in England will rise by 3. 8% in March In April, companies, workers and the self-employed will start paying an additional 1. 25% in National Insurance Contributions under the Health and Social Care Levy The same month is likely to see substantial rises in gas and electricity bills as a result of the energy price cap increasing in the region of 50% The Bank of England's traditional response to rising inflation is to raise interest rates. That means anyone who has borrowed money could see their monthly payments go up, especially on mortgages tied... --- ### Look before you leap - Published: 2022-01-17 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/look-before-you-leap/ - Categories: Creditors, Directors, Insolvency, Liquidation 17 January 2022: Prospective new clients are often surprised when we tell them that they don’t, or shouldn’t, want our services. Their reaction is considerably magnified where they have already spoken with another Insolvency Practitioner (“IP”) who was happy to sign them up for a liquidation or other insolvency procedure. The devil, as always, is in the detail. In these pandemic effected times, many directors that have always done quite well thank you very much, now find that despite Government support, they are carrying debts built up during the pandemic. Although they may have positive trading forecasts for the future, it may not be sufficient to meet ongoing costs as well as the historic debts. Such directors may now have to consider the word ‘insolvency’ and its implications for the first time. To establish the best outcome, looking into what liabilities there are and what, if any, other security those creditors might hold is an important additional step to take – have the directors guaranteed any of them? Yes, you can be quite confident any bounce back loan or CBILS are not personally guaranteed (subject to the £250k limit), but are the directors sure the funds were applied for and used correctly and what about everything else? The bank, other loans, factoring, lease agreements, the landlord (is the lease actually in the name of the director(s) and not the company? ). The consequences of pulling the plug may be far worse than the consequences of carrying on. If all the... --- ### Warning for directors of dissolved companies and those proposing dissolution - Published: 2022-01-10 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/warning-for-directors-of-dissolved-companies-and-those-proposing-dissolution/ - Categories: Directors, Insolvency, News 10 January 2022: The Insolvency Service have had the power to investigate the conduct of directors of insolvent companies that were formally wound up with the appointment of office holders in liquidations and administrations. The office holders are insolvency practitioners who the Insolvency Service rely upon to bring conduct believed to need further investigation to their attention. The Ratings (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 received Royal Assent on 15 December 2021. The Act extends the provisions of the Company Directors Disqualification Act 1986 to allow the Insolvency Service to investigate the conduct of directors of dissolved companies and, where appropriate, bring disqualification proceedings and seek compensation orders on behalf of the Secretary of State. The Insolvency Service have published information about dissolved companies on the Gov. UK website and information includes when the Insolvency Service might investigate complaints lodged about dissolved companies. For example, banks can now make a complaint to the Insolvency Service of companies that took out bounce back loans and other loans/grants during the pandemic and have since dissolved their company. If your customers/debtors have engaged with you and not paid the debt they owed and have since dissolved their companies, you can now bring this to the attention of the Insolvency Service. Dissolving a company without a formal insolvency process has become near impossible, especially one with significant debts outstanding. If you are a director looking to dissolve your company but do not wish to be publically named and shamed on the government... --- ### Changes to company strike off processes > Strike off processes - find out what your options are and talk to the experts at BRI for honest advice that is right for you. - Published: 2021-12-13 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/changes-to-company-strike-off-processes/ - Categories: Insolvency, Liquidation, News 13 December 2021: We are seeing an increase from directors who have tried to use the strike off process to deal with their limited company but that the strike off application has been objected to for reasons that weren’t clear to them. This is often the case, as Companies House will only note that an objection has been received and not provide details of who objected to the strike off. This brief note sets out our current understanding of why these strike off objections might be happening. Default objections Due to the unprecedented number of Government-backed Bounce Back Loans and Coronavirus Business Interruption Loans that are at risk of being irrecoverable, the Government has taken steps to object to every strike off application where a loan is outstanding. How and by whom? This is being facilitated via the Department for Business, Energy and Industrial Strategy (“DBEIS”) as we recently found out when a potential client asked us for assistance. Can I talk to them and get it withdrawn? DBEIS confirmed that they cannot withdraw their objection to the strike-off until they have received confirmation from the lender that there is no longer an outstanding loan. Only the lender can advise on whether there remains a loan and update the company’s repayment information through its dedicated digital portal reporting system. No funds to repay, company no longer viable and ceased to trade DBEIS advise that whilst they understand the difficulty of the circumstances, it remains the position of DBEIS to uphold... --- ### Making Your Members’ Voluntary Liquidation Go Smoothly - Published: 2021-12-02 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/making-your-members-voluntary-liquidation-go-smoothly/ - Categories: BRI, HMRC, Liquidation 2 December 2021: At BRI, we pride ourselves on giving excellent, attentive service to all of our clients and endeavour to progress our members’ voluntary liquidations as efficiently as possible. We fully recognise that our clients expect the liquidation of their companies to result in a prompt distribution of the assets – as well as the VAT refund on BRI’s fees (where applicable) – and the closure of the liquidation to be completed as soon as possible. However, we are always reliant on HM Revenue and Customs giving its consent to the closure of a liquidation case, and this is entirely dependent on the filing of all tax returns covering the period up to the date before our appointment as liquidators. Understandably, clients will sometimes question why HMRC require returns when their company has ceased trading some months before our appointment and all of the necessary returns were filed at the date of cessation. However, returns covering the period from cessation of trade to date of liquidation are needed to be filed and are ordinarily nil returns. Nil returns serve to confirm that no tax liabilities remain at the date of liquidation, providing HMRC with the assurance it requires to give us the consent to close the case. Unfortunately, when post-cessation returns have not been submitted, the liquidation process can be severely delayed. Naturally, as soon as we are made aware that a return is outstanding, we contact our clients immediately and work with them to address the matter, but... --- ### Bailiffs at the door (sorry, that should read ‘Enforcement Officer’) > With Government interventions introduced during the pandemic, we have noticed a number of instances of debt enforcement action recently. - Published: 2021-11-25 - Modified: 2024-05-10 - URL: https://www.briuk.co.uk/bailiffs-at-the-door-sorry-that-should-read-enforcement-officer/ - Categories: Bankruptcy, Creditors, Insolvency, Liquidation 25 November 2021: As insolvency practitioners we often receive calls from directors under pressure who have creditor enforcement action at the forefront of their minds. With Government interventions introduced during the pandemic, aimed at preventing creditor action, having begun to ease, we have noticed a number of instances of debt enforcement action recently and specifically with regard to the threat of bailiffs turning up at the debtors door. In terms of the technicalities regarding bailiff action, where a judgement has been secured by a creditor, action may be taken to satisfy the judgement through execution. The debtor will first receive notice of this intended execution and given 7 days to deal with the debt. The term “Enforcement Agent” is now used instead of bailiff. If collecting under a county court judgement (up to £5,000) they are “Enforcement Officers”; with a high court judgement they are “High Court Enforcement Officers” (HCEOs, formerly known as sheriffs). HCEOs are members of the HCEO Association and follow a code of best practice in addition to the National Standards for Enforcement Agents issued by the Ministry of Justice. If threatened by enforcement action it may be sensible to review the best practice and standards to ensure that they are being followed by those threatening action. The HCEO Association membership can also be verified to ascertain if the debt collector is who they say they are – please do be aware of unregulated debt collectors using terminology which mirrors actual judgements but does not carry the... --- ### Directors automatically liable for company debts when using a prohibited company name - Published: 2021-11-16 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/directors-automatically-liable-for-company-debts-when-using-a-prohibited-company-name/ - Categories: Directors, Insolvency, Liquidation 16 November 2021: In a recent decision, the court held that where a director is in breach of the rules relating to the re-use of a company name, and a creditor has obtained judgment against the new company using the prohibited name, the director is automatically personally liable for the debt without the creditor having to issue separate proceedings against the director. The law relating to the re-use of a company name states that where a company goes into insolvent liquidation, any director who held office in the preceding twelve months is prohibited from being a director of, or involved in the management of, a company with the same or a similar name for five years. Breach of this is a criminal offence and the director(s) in breach are personally liable for the new company’s debts as a consequence. There are three exceptions to this rule:- Where the court gives permission; If the new company acquired the business of the insolvent company from a liquidator or administrator and relevant notice of such is given to creditors within 28 days; or If the new company has already been trading for twelve months prior to the insolvency. In the recent case in question, a creditor commenced proceedings against a company they said was trading with a prohibited name and asked the court to initially determine if the director would be automatically liable for the debt if their proceedings were successful in due course. The director argued that a judgment is only binding... --- ### Crippling Debt > It was reported that UK corporate debt went up £1.9tn to £6.6tn in 2020. It was also reported that the vast amount of debt is irrecoverable. - Published: 2021-11-09 - Modified: 2024-05-10 - URL: https://www.briuk.co.uk/crippling-debt/ - Categories: HMRC, Insolvency, News 9 November 2021: It has been reported that the UK corporate debt went up by £1. 9tn to £6. 6tn in 2020. It was also reported that the vast amount of this debt is irrecoverable. Almost 52% of businesses are now saddled with debts they cannot afford to pay. The good news for suppliers/banks/HMRC waiting to be paid is the reopening of courts in September, allowing them to take action and chase payment. These suppliers have to be commercial when assessing how much of their debt they will recover and how long it will take to receive payment. ‘Zombie’ companies that owe money to creditors have been an issue since the recession more than a decade ago. When the pandemic hit, many took advantage of the government backed loans and paid off debt they had accumulated from newer lenders on the market. This gave them time to continue to bury their head in the sand but now they will be forced to wake up to the situation and take action. The serious question that these businesses need to answer is do they have a viable business. Can they ride out the winter storm and recover from the crippling debt position. Recent data also revealed that some sectors are in a more of a vulnerable position than others, specifically those businesses in real estate and property, in hotels and accommodation and bars and restaurants are all now unlikely to be able to pay their current liabilities. If you are a business... --- ### More Bounce Back Loans misused; more directors banned - Published: 2021-11-04 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/more-bounce-back-loans-misused-more-directors-banned/ - Categories: Directors, Insolvency, News 4 November 2021: The Insolvency Service is continuing their investigations into companies that have either misused or inappropriately applied for Bounce Back Loans (BBL) and have banned three directors of three separate companies who have either misused or inappropriately applied for £100k worth of BBL funds. One of the three applied for a £30k BBL when his company had already ceased trading and therefore was no prospect of it being repaid and this individual has been banned from acting as a director for 9 years. One inappropriately applied for £50k and used the funds to repay a relative over other creditors and the other individual received £19k and transferred £17k of it to his own personal bank account. The latter two individuals are both now bankrupt and have had their bankruptcy restrictions extended for a period of 8 years each meaning that they are unable to act as a company director during this time. The BBL were there for businesses to provide a lifeline in the midst of the global pandemic and whilst there will likely be many more cases similar to the above that will come out in the future, there will also be many companies that have received a BBL but have legitimate reasons as to why they are unable to repay them. If you or a client has any concerns surrounding the use of a BBL or any other Covid-19 related Government support, please contact any one of our experienced management team for a free confidential chat;... --- ### Has HMRC lost its bite? > HMRC are not actively petitioning for companies to be wound up and are encouraging those with debt to get in touch and discuss the situation - Published: 2021-10-19 - Modified: 2024-01-24 - URL: https://www.briuk.co.uk/has-hmrc-lost-its-bite/ - Categories: HMRC, Insolvency, Liquidation, News 19 October 2021: Following the winding back of Covid-related legislation, which has undoubtedly helped many businesses survive, HMRC are once again able to petition to wind-up companies. The press has often reported that the insolvency profession will be rushed off its feet when things implode. However, this simply hasn’t happened yet and, if it does, it is unlikely to be because of HMRC. HMRC are not actively petitioning for companies to be wound up and are instead encouraging those with debt to get in touch and discuss the situation, no matter how dire the position might be. In the past we may have seen companies with a clean track record able to obtain time-to-pay arrangements of, on average, 12 months, sometimes 24 months, in order to spread debt repayments. If the previous track record of paying HMRC was less than perfect it would have been very difficult to obtain a time-to-pay arrangement. Now, HMRC are saying that they will actively work on whatever realistic proposals are put to them, even if that means longer agreements, which certainly provides more breathing space. HMRC understands that this is a unique time those companies find themselves in. What may have been a thriving business that always paid its tax on time before the pandemic may be a far cry from the state of the business now. HMRC will still, rightly so, wind-up those that are actively evading taxes and causing undue harm. For those with genuine reasons for default the message we are... --- ### Building on quicksand - Published: 2021-10-15 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/building-on-quicksand/ - Categories: BRI, Economy, Insolvency, News 15 October 2021: The construction industry is awash with small companies that are destined to fail. The power of main contractors and the terms of construction contracts, often means that the minnows are easy prey for the big boys. Terms which mean debts are not payable when the creditor becomes subject to an insolvency process can mean that non-payment of a sub-contractor results in them entering an insolvency process, which in turn, means they do not then need to be paid. This is often a “standard term” which is agreed to by sub-contractors eager for work. Following BREXIT, Covid-19 and now driver shortages and import delays etc. etc. the already difficult job of managing work-flows in construction have become nigh on impossible. Add to this slow paying/non-paying debtors and the headaches mount. Sadly there is no one pill that will cure all such ills. BRI offers a free, confidential meeting with all who want to discuss their financial position when things are not going to plan. We can, if required, point those in the construction industry in the direction of specialists who help distressed contractors take things forward so that they are not incurring fresh credit for materials, goods and services which will only give benefit to main contractors if the rug gets pulled. Finding a way forward is often difficult and no-one is suggesting that the construction industry is enjoying the best of times. To this point the London Gazette has recently reported, ‘the construction industry has the highest... --- ### Company Voluntary Arrangement (“CVA”) continues to produce return - Published: 2021-10-07 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/company-voluntary-arrangement-cva-continues-to-produce-return/ - Categories: BRI, Recovery, Success Stories 7 October 2021: Over the last 18 months or so we have provided various updates on a CVA that is being dealt with by BRI’s Northampton office. The CVA was approved by creditors in October 2019 and, despite the pandemic, the company has managed to continue to trade profitably. The majority creditor is HMRC and a further distribution of £250,000 has been paid to them, giving a total sum paid to date of £750,000. A CVA is, generally, an insolvency procedure that tries to help a company recover and avoid formal liquidation. Should you require further information and guidance in respect of a CVA or any other insolvency related matter, please contact any one of BRI’s management team. --- ### Gloomy weather is back and so is VAT for restaurants and pubs. > If you need assistance in long-term recovery planning and would like to explore options, contact any one of BRI’s experienced management team. - Published: 2021-10-04 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/gloomy-weather-is-back-and-so-is-vat-for-restaurants-and-pubs/ - Categories: HMRC, News 4 October 2021: For restaurants and pubs, VAT increased from 5% to 12. 5% from 1st October 2021. Owners of these business feel the increase is badly timed as they are already hanging on by a thread. The industry is slowly recovering from the pandemic and further rises will only have a negative impact on them. VAT - the tax paid when buying goods or services - has been levied at a reduced rate in pubs, restaurants and other hospitality businesses since July 2020 to help them stay afloat during the pandemic. The sales tax won't return to its pre-pandemic rate of 20% until April 2022. In addition to the VAT increase, businesses are also having to cope with rising import, energy and staffing costs. Suppliers have increased prices to help them recover from the pandemic. Shipping costs on imports have also significantly increased. Many businesses are saying that they cannot take on any extra costs and they are left with no option but to pass the costs onto their customers. These businesses feel they still need more help to secure the future of existing restaurants and pubs and also to protect jobs. Temporary measures to support these businesses as they recover from the pandemic have come to an end and if you feel you and your business need assistance in long-term recovery planning and would like to explore the options, please contact any one of BRI’s experienced management team. --- ### The end of the furlough scheme - Published: 2021-09-21 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/the-end-of-the-furlough-scheme/ - Categories: HMRC, News 21 September 2021: The government has started the process of winding up its Coronavirus Job Retention Scheme, otherwise known as furlough. The furlough scheme has propped up the economy and supported businesses throughout the UK during the coronavirus pandemic by paying the majority share of employees’ wages in order to avoid mass unemployment. A third of Britain’s workforce has been on furlough since the scheme began in March 2020. The scheme was originally scheduled to end on 31 October 2020 before the second wave of the virus hit last autumn. However, since the vaccine rollout has gathered momentum and enabled the easing of social restrictions, it has allowed many businesses to return to some degree of normality, and the scheme will end on 30 September 2021. According to data from HM Revenue & Customs, the number of jobs furloughed peaked at 8. 9 million on 8 May last year. It then fell steadily until late last year when it picked up again, although the level did not reach the peak as it did during the first lockdown. Numbers then fell to about 2. 4 million as restrictions started to ease. At the same time, those who remained in work saw their hours decline sharply, although there has been significant recovery in these numbers also with the ending of the lockdown and businesses now returning to work. Whilst young people made up the majority of workers initially placed on furlough, the re-opening of shops, restaurants and bars and has allowed many... --- ### End of Temporary Insolvency Restriction Protections: Will we see an influx of winding up petitions? > Whether you want someone wound up or are under threat of a winding up petition, BRI offer a free consultation. - Published: 2021-09-14 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/end-of-temporary-insolvency-restriction-protections-will-we-see-an-influx-of-winding-up-petitions/ - Categories: HMRC, Insolvency, News, Recovery 14 September 2021: Since the first lockdown there has been a general moratorium on presenting winding up petitions. With the gradual restoration of “life as we knew it”, this moratorium will have come to an end on 1 October 2021. Albeit, this does not apply to commercial rent arrears (the moratorium stays in place until 30 March 2022 for these debts). New legislation will also increase the debt threshold for a petition to £10,000 (significantly up from £750) and creditors will now be required to give 21 days for the debtor business to provide proposals for payment. Despite these safeguards the lifting of temporary protections could see the insolvency floodgates open with courts soon inundated with winding up petitions. So what does all this mean? Well, if you are owed more than £10,000 from 1 October 2021 you can apply to the court to close or ‘wind up’ a company. The costs of the process are not small, with £280 of court fees, £1,600 for the petition deposit plus solicitor’s fees and the cost of a process server, in total costs might total circa £3,000 - £3,500. In addition the company may look to challenge the petition, which could lead to further delays and additional legal fees. Any creditor considering the winding-up route should be aware that their debt ranks equally with all other creditors. Therefore, if an unsecured creditor (i. e. regular trade customer/supplier) they will still rank behind the costs of the process as well as secured creditors... --- ### Seeking early advice is crucial, even more so now given the final month of furlough. - Published: 2021-09-01 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/seeking-early-advice-is-crucial-even-more-so-now-given-the-final-month-of-furlough/ - Categories: Directors, Economy, Insolvency, Recovery 1 September 2021: At BRI Business Recovery and Insolvency we always recommend, when a company is experiencing financial difficulty, the earlier advice is sought the greater the options available and the chance of recovery. There are still many Covid affected businesses and BRI would urge directors of these business to utilise the final month of Government’s furlough scheme to plan for the future and address any financial issues they believe the business will face. The furlough scheme comes to an end on 30 September and, after this point, no more Government funds are anticipated to be available to assist paying wages. It is now that directors should use this time wisely to review cash-flow forecasts and, if a bump in the road is looming, take advice early from BRI to explore the options available to them. All of BRI’s 6 offices are fully open and we are able to meet and discuss problems face to face at an early stage. Whilst it is appreciated that it may be hard to have this conversation, we have no doubt seen the problem before and will provide the right advice. BRI have helped numerous directors decrease the curve of the bump and even flatten it completely leading to the road of recovery. If you would like a free and completely confidential meeting, please call any one of BRI’s management team who will be more than happy to assist. --- ### Time’s up - Published: 2021-08-26 - Modified: 2024-03-20 - URL: https://www.briuk.co.uk/times-up/ - Categories: HMRC, Insolvency, News 26 August 2021: There has been a lot that businesses have had to grapple with, going in and out of lock downs and the financial and legal changes they had to be adhered to. The Government introduced a number of measures to help businesses survive the pandemic and time is now up for those have been sheltering behind monetary handouts and legislative protections. Eviction bans and a suspension to issuing court proceedings is set to end by 30 September 2021. The Corporate Insolvency and Governance Act 2020 prevented businesses and individuals from issuing statutory demands, winding up petitions and bankruptcy proceedings against debtors whose cash flow was impacted by Covid-19 related debts. From 1 October 2021, all is going to change for those have been waiting patiently to utilise legal processes to get their money back. Since the beginning of the pandemic, landlords have been forced to sit tight and have not been allowed take action against tenants who were in arrears of rent. Covid -19 and Government restrictions have been easing and, from 1 August 2021, the notice period for evictions was reduced from 6 months to 3 months. HMRC have often been seen as the aggressive party to take action and they will, from 1 October 2021, be able to claw back the debt owed to them. VAT and PAYE due between 20 March 2020 and 30 June 2020 was allowed to be deferred and repayment began on 1 July 2021. However, you should be mindful that HMRC’s... --- ### Bounce Back Loan Scheme abuse – tales from the shop floor - Published: 2021-08-18 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/bounce-back-loan-scheme-abuse-tales-from-the-shop-floor/ - Categories: Directors, Economy, News 18 August 2021: We are seeing an increase in enquiries related to the Bounce Back Loan Scheme (BBLS) now that the first tranche of loans have started to fall due for repayment. Even though the repayment terms can be restructured and extended over a period of up to ten years, it is the unfortunate reality that a number of businesses have seen no improvement in trade since the cycle of lockdowns first started, even though restrictions are now all largely relaxed. With the furlough scheme also now winding down, and employers therefore having to cover the full costs of their staff again, it is only now that we expect to start seeing the real effects of the pandemic on businesses. The support schemes put in place to help businesses during the pandemic are to be applauded but it is a sad fact of life that there were always going to be people out there who saw them as an opportunity to make an undeserved financial gain for themselves. There is expected to have been a certain amount of abuse of the BBLS in particular as the banks and lenders were under pressure to get funds into the hands of businesses as soon as possible. Non-trading or recently-incorporated companies have obtained a loan or loans when these companies would have had no prospect of obtaining a loan on normal commercial terms. The funds have then been transferred out of the company by the director or some other connected party and possibly... --- ### He takes all the prizes… - Published: 2021-08-13 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/he-takes-all-the-prizes/ - Categories: Events, Local News 13 August 2021: James Robinson taking home all the prizes at BRI Golf Society (BRIGS) this week! Flying the Hawsons Accountants flag, James managed to do the double being overall winner (on countback – just pipping Paul Currie from DFA Law) and winning nearest the pin. It is the first time James has won a prize at BRIGS given he is relatively new to golf and he certainly did it in style winning wine, golf balls, a flask and an umbrella (the latter two courtesy of Tom Low from Propel Finance, which is appreciated). An enjoyable BRIGS event yet again and thanks to everyone who attended. If anyone would like to know more about BRIGS then please contact Ian Cooke on 01604 595606 or by email to icooke@briuk. co. uk --- ### Suspension of Wrongful Trading Provisions is Over - Published: 2021-08-12 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/suspension-of-wrongful-trading-provisions-is-over/ - Categories: Directors, Insolvency, News 12 August 2021: The above is not the snappiest of headlines but it does rather get to the point. Although certain emergency measures brought in by The Corporate Insolvency and Governance Act 2020 have been extended further, the suspension of wrongful trading provisions have not. Therefore, as of 1 July 2021, directors are once again at personal financial risk if they continue to trade an insolvent company. The wrongful trading provisions are detailed within Section 214 of the Insolvency Act 1986. They state that ‘... the court, on the application of the liquidator, may declare that that person is to be liable to make such contribution (if any) to the company’s assets as the court thinks proper. This subsection applies ... that person knew or ought to have concluded that there was no reasonable prospect that the company would avoid going into insolvent liquidation’. In a more digestible form; if the director is, or even ought to be, aware that the company is insolvent and will not recover solvency, then they will become personally liable for losses made from the point that they ought to have been aware of the insolvency. To assist directors struggling during the pandemic the government suspended such provisions so that this particular additional millstone was not hanging from their necks. However, with the provision being back in play, directors must be very mindful of continuing to trade on if the pandemic has left their company insolvent. In light of the above, if you or your... --- ### Will “Freedom Day” be the boost SMEs need? - Published: 2021-08-03 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/will-freedom-day-be-the-boost-smes-need/ - Categories: Economy, News 3 August 2021: As many of us now begin to get used to experiencing life somewhat as it was pre-pandemic, for example face coverings no longer being required by law, many small and medium sized enterprises (SME’s) will now hope that they are able to see their businesses reach levels of trading as they were pre-pandemic as they hope to improve their cash flow. However, is the easing of restrictions enough for small businesses to be able to recover? It cannot be ignored that the cost of the pandemic on SME’s has been significant, with one article declaring that the costs for small businesses have been higher than anticipated, with costs reaching £126. 6 billion. A sample of 1,206 small businesses (across all sectors) have lost £15,673 each on average which is up from the initial estimate of £11,779 last year. Furthermore, 81% of those businesses have felt that they did not receive enough support from the Government during the last 12 months of the pandemic and had wished that there was better communication from the Government in regards to support schemes, while half of the small businesses have felt that the Government should have offered a wider range of financial support schemes. 65% of small business owners are feeling more confident about their recovery due to the vaccine rollout but, earlier this week, professor Chris Whitty stated that the “UK is not out of the woods yet” when it comes to the coronavirus as he told a webinar hosted... --- ### All ‘Zzz’oomed Out? - Published: 2021-07-22 - Modified: 2024-03-20 - URL: https://www.briuk.co.uk/all-zzzoomed-out/ - Categories: BRI, Local News 22 July 2021: On 19 July 2021, BRI safely welcomed back the team to their offices and, for some, it was the first time they had met their colleagues in person due to joining us during lockdown. Whilst we have stayed in close contact throughout the pandemic, we all agreed that the novelty of working from home had started to wear off. A lot of people we have spoken to recently are also very much “zoomed out” and are looking forward to physical meetings being held once again. As we have mentioned in previous articles, the insolvency profession is predicted to be extremely busy in the very near future and so now, more than ever, a number of clients will need our help and support and the team at BRI are pleased to be able to safely offer this in person. However, for those that are still not yet fully comfortable with the idea of a physical meeting, we will still of course be able to meet with clients virtually. Please call any one of our experienced management team for a free of charge initial consultation with no obligation. --- ### Though it May Feel Like the End of the World… - Published: 2021-07-13 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/though-it-may-feel-like-the-end-of-the-world/ - Categories: BRI, Insolvency, Recovery 13 July 2021: ... don’t worry, it isn’t. The collective groan of (an estimated) 40 million people could be heard across the UK as Saka’s penalty was saved by the Italian goalkeeper. The whistle from the kettle in my kitchen could be heard moments later as I hid away unable to watch the images of Italian fans revelling in their moments of victory. Sometimes, things are a little hard to take and the best option seems to be wishing it away. Thankfully, the great disappointment here was the loss of a football game, no lives lost or ruined and the world still turns, with the sun rising in the east each morning. As insolvency practitioners we are no strangers to the sight of disappointed or anxious faces. However, no matter the situation or how dire circumstances may seem there is more often than not light at the end of the tunnel. For example, voices can already be heard talking up the chances of the young England team going one better at next year’s world cup finals. It is often our role to help individuals and company directors and potentially their staff and creditors, deal with difficult situations when it is apparent that a company is failing and insolvency is required. These situations can also feel like the end of the world for individuals who are now facing uncertain futures. Our approach at BRI is always to work with people, recognising them as individuals and giving the right advice, first time... --- ### Only fools rush in… > Creditors’ voluntary liquidation (CVL): gain advice from the experts at Business Recovery & Insolvency, for the best possible outcome. - Published: 2021-07-07 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/only-fools-rush-in/ - Categories: BRI, Directors, Insolvency 7 July 2021: BRI’s Northampton office was contacted by a director regarding his company’s financial affairs and also a shareholder dispute. The shares were held 50/50, the director holding 50, the other 50 held by a shareholder not involved in the daily running of the company. Given the dispute and financial position of the company, the director wanted the company to be placed into creditors’ voluntary liquidation (CVL). BRI were effectively given the task to act as a mediator between the shareholders as, if agreement could not be reached, a CVL could not happen. However, having considered matters, BRI were of the opinion that, whilst the company would not be able to continue to trade its assets, if they were realised in an orderly manner, they could provide a significant return to creditors and perhaps an informal deal could be achieved with the company’s creditors to avoid the costs associated with a CVL. The company’s liabilities were £226K, which included the redundancy costs of the 10 employees totalling £56K. The outcome, after taking BRI’s advice and guidance, is that all liabilities have been paid in full with a significant surplus available to the shareholders of over £100K. Given this surplus, BRI are likely to be appointed liquidators of the company but in a solvent liquidation, whereby the funds are paid to the shareholders in the most tax efficient manner. BRI pride themselves on giving the right advice first time, every time. Please call any one of the experienced management team... --- ### 15 years? Really? - Published: 2021-07-02 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/15-years-really/ - Categories: BRI, Local News 2 July 2021: Whilst working from home, the BRI MK, Hitchin and Spalding teams decided to set up some team building lunch time events on Zoom. Games played during these lunchtime events included scavenger hunts, ‘Who Am I? ’ and ‘Would I Lie to You? ’. Suki Bains, Licensed Insolvency Practitioner, who has been running the Hitchin office for the past 9 years trumped the other team members with her answer to the question of who has the oldest social media picture. This month, Suki celebrates her 15th anniversary working at BRI Business Recovery and Insolvency and the picture on her LinkedIn page was taken when she first started with the firm as an Administrator for the Milton Keynes office. With the aim of achieving a better work/life balance, Suki opened up the Hitchin office after passing her JIEB (professional insolvency exams) and has successfully managed it ever since. Suki said, ‘I wouldn’t say it has been a long journey, 15 years have flown by so quickly and it certainly has been eventful as we have continuously grown during that period. The pandemic required rapid transitioning to keep up with the times and I am proud to continue to be a member of a team that embraced and developed to become even stronger as a unit. Throughout we continued to support our professional contacts and clients and help businesses in their desperate time of need. No doubt there will be more turbulence ahead and we are armed to continue doing... --- ### Safe as houses II - Published: 2021-06-29 - Modified: 2024-03-20 - URL: https://www.briuk.co.uk/safe-as-houses-ii/ - Categories: BRI, Directors, Insolvency, Recovery 29 June 2021: In a recent article we told the tale of a company, formed in 1966, which, through its directors, had strayed from the straight and narrow path and the directors have now been disqualified from being directors. Having a company with a long trading history and good credit references can be attractive to those who might like to take advantage of the opportunities such things can bring. A similarly aged company we dealt with a couple of years ago was just about “washing its face” when the husband and wife directors decided that it was time to call it a day and to look for possible buyers. They lived next door to the trading premises and didn’t expect the business itself to be worth very much but, they hoped, if they could sell it as a going concern then the rental payments for the premises, that they now owned outright through their pension, would keep them in a comfortable enough lifestyle. They just needed a bit of luck. They quickly found a business owner who wanted to buy their shares. He was in the same trade but based in another town in the next county. They couldn’t believe their luck – this looked to be the perfect deal. They booked their cruise and, as soon as the deal was done, embarked on a trip of a lifetime. Sadly the new shareholder neglected to tell companies house about the expected change in directors. He also began ordering materials, through... --- ### BRI Winners Golf Day > A great finish for the BRI Winners Golf Day yesterday with outstanding weather at Staverton Park Golf Club - find out more here - Published: 2021-06-24 - Modified: 2024-03-19 - URL: https://www.briuk.co.uk/bri-winners-golf-day/ - Categories: BRI, Events, Local News 24 June 2021: A great finish for the BRI Winners Golf Day yesterday with outstanding weather at Staverton Park Golf Club. Those that qualified from their regional golf days 2 weeks ago (Northamptonshire, Coventry and Milton Keynes) competed to be crowned overall champion whilst also representing their region in a team competition. Congratulations to Simon Newbold from Seymours Solicitors who won the individual competition and is crowned the BRI Winners Golf Day Champion, finishing just ahead of second placed Liz Newell (the defending champion) of MHA Macintyre Hudson and Tom Low of Propel Finance in third. The best team score went to the defending champions Milton Keynes; Tom Guthrie, Liz Newell, Steve Wilson and Andy Chubb, whilst nearest the pins were won by Andrew Dyte and Tom Low. Thank you to all that attended yesterday - a great day all round and we hope to see you all again very soon. --- ### Money back into the pockets of creditors - Published: 2021-06-18 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/money-back-into-the-pockets-of-creditors/ - Categories: BRI, Creditors, Recovery 18 June 2021: Following the liquidation of a company providing supplies to the automotive sector, we successfully negotiated and concluded a sale of the business, goodwill, assets and stock together with a successful collection of debtors. This resulted in a significant reduction in the debt owed to the secured creditor and pay-outs to various other classes of creditors. The company’s largest creditor was its secured creditor. Following advice from independent agents, a deal was reached with the secured creditor for them to retain the business and assets secured under its fixed charge for an amount that was greater than what could have been realised any other way. Other assets not subject to the fixed charge security were sold to the secured creditor. The secured creditor therefore received a significant reduction in debt under their fixed charge. The preferential creditors (comprising the employees and the redundancy payments office) were paid in full. Unsecured creditors were paid 4. 16 p in the £ on their debt under the prescribed part provisions. The prescribed part provides that a proportion of the funds that would ordinarily go to the floating charge creditor be set aside for the benefit of unsecured creditors. The floating charge creditor also received a significant return following this deduction for the unsecured creditors. We go the extra mile to make sure that we maximise returns to creditors by facilitating the best recoveries and paying out as quickly as we are able to. We recognise the importance to cash flow for... --- ### A good outcome despite liquidation, cobblers! Well yes, indeed they were. - Published: 2021-06-14 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/a-good-outcome-despite-liquidation-cobblers-well-yes-indeed-they-were/ - Categories: BRI, Insolvency, Local News, Success Stories 14 June 2021: A recent appointment in our Milton Keynes office involved the liquidation of a very well established Northamptonshire based shoe maker. The company were well known and respected in the local area and the decision to liquidate was clearly made with a heavy heart. However, the name of the brand does live on via a sale of it and the former trading premises will continue to make shoes into the future with former staff at the helm locally following a successful sale of the plant and machinery inside. It is always very sad to see such well established companies (this shoe maker had traded for over a hundred years in Northampton), who employ many local workers, to experience financial difficulties but at least there is something over a silver lining in this instance given the successful sale of company assets. Staff at BRI initially worked with the director to explore possible recovery options, including potential new investment or a sale of the business as a going concern. When it became apparent this would not be possible the process moved forwards towards a formal insolvency process. In this instance the planning and strategies, as well as the goodwill and assistance of employees, helped to enable a successful sale process for company assets, with proceeds realised ultimately almost doubling initial estimates. The level of realisations, which occurred within the first few months of liquidation, will result in distributions being payable to the fixed charge holder, preferential creditors, second class preferential... --- ### Golf Days: And the final 9 are … > A fantastic day at our 3 golf days yesterday; plenty of sunshine, ‘normal’ face-to-face networking and an array of lost golf balls. - Published: 2021-06-10 - Modified: 2024-05-10 - URL: https://www.briuk.co.uk/and-the-final-9-are/ - Categories: BRI, Events, Local News 10 June 2021: A fantastic day at our 3 golf days yesterday; plenty of sunshine, ‘normal’ face-to-face networking and an array of lost golf balls. Hopefully all of those who attended enjoyed themselves as much as we did and we thank everyone involved for helping in making the day on each course so great. Anyway back to the important stuff - the top 3 point scorers from each region yesterday (Northamptonshire, Coventry and Milton Keynes) have been invited to attend the Masters equivalent of Golf Networking competitions; the BRI Winners Golf Day on 23 June 2021, where they will compete to win the prestigious trophy as pictured yesterday. The 9 who have qualified for 23 June 2021 are as follows: David Turner – Northamptonshire ‘regional champion’ Tom Low Andrew Dyte Steve Harcourt – Coventry ‘regional champion’ Simon Newbold Paul Grundy Luke Tillison – Milton Keynes ‘regional champion’ Steve Wilson Rob Kelly Congratulations to all of those above and we look forward to seeing you on 23 June. Again, thank you to everyone who attended, it was great to safely see you all. --- ### Safe as houses? > If you are concerned about your role as a director or about the conduct of directors you are currently dealing with, please contact BRI. - Published: 2021-06-07 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/safe-as-houses/ - Categories: Insolvency, News 7 June 2021: Some may consider that all new companies are necessarily high risk. However, some old companies are not as safe as houses. Walsham Chalet Park was incorporated in 1966 and operated 8 holiday parks across England. James (23) and William Moir (27) joined their father Simon as directors of the Company in 2017. The holiday parks company ran an investment scheme where individuals could invest in part or an entire holiday chalet and would receive returns based on the holiday rental income from the chalet. Investigations following Walsham Chalet Park’s insolvency in September 2019 found that 161 individuals had paid Walsham Chalet Park £14. 2m to invest in chalets never built. 30 of those investors further paid the company £1. 8m to invest in chalets at a site in Gloucestershire that Walsham Chalet Park did not own. On 11 March 2021, the Secretary of State accepted disqualification undertakings from James and William Moir after they did not dispute they had breached their duties as directors of the company. They have been banned from acting as directors for 6 years each which means they cannot, directly or indirectly, become involved, without the permission of the court, in the promotion, formation or management of a company. Their father, Simon Moir (58), previously received a 14 year ban in September 2020 for his role in this scheme. The maximum ban that can be applied to a director is 15 years. If you are concerned about your role as a director or... --- ### Building firms facing financial pressure due to shortage of supplies and rising costs - Published: 2021-05-28 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/building-firms-facing-financial-pressure-due-to-shortage-of-supplies-and-rising-costs/ - Categories: Economy, Insolvency, News 28 May 2021: During lockdown many saved and embarked on DIY and home improvement projects. This unprecedented demand is now leading to a shortage of cement, some electrical components, timber, steel and paints. This shortage of building materials could lead many building firms to delay projects, others may be forced to close, some indefinitely, others permanently. It is reported that small, local builders are being hit hardest by material shortages and price rises. Recovery out of the pandemic is proving challenging with price rises as supplies dry up. Shipping costs to the UK since Brexit has also lead to an increase in costs. Raw material supplies are mainly imported and lead times as well as commodity prices are increasing. Global warming is another factor that is affecting supply with a warmer winter, slowing timber production in Europe and a colder winter in places like Texas affecting the production of chemicals, plastics and polymer. The pressure is on the small to medium size firms in ensuring the right prices are charged for work. If the margins are not correctly priced, many builders will find themselves in financial difficulty and unable to pay suppliers and wages. If you or your client have concerns and are being affected by the above issues, consequently feeling the financial pressures, please feel free to contact one of our management team. --- ### CVA battles between landlords and retailers continue - Published: 2021-05-20 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/cva-battles-between-landlords-and-retailers-continue/ - Categories: Creditors, Directors, Economy, News 20 May 2021: Over the past couple of years any mention of a company voluntary arrangement (CVA) in the national press was usually in relation to a “controversial” CVA proposed by a High Street retailer or restaurant whereby landlords felt their rights were being adversely affected in relation to the general body of creditors. A CVA can be used by an insolvent company to address or restructure future lease commitments and so landlords can be vocal in their criticism due the significant sums often involved. In a couple of recent CVAs, groups of landlords banded together to launch legal challenges to the respective CVAs and the judgments have been eagerly awaited. Both have been handed down in the last fortnight and whilst each case could be a study of its own, the brief facts are these:- New Look Retailers Limited New Look entered into a CVA in September 2020 due to the impact of the Covid-19 pandemic and did so as part of a wider restructuring. The CVA was challenged by landlords and was expedited through the courts due to the significance of the outcome, not only on the CVA itself but on the wider use of CVAs as a restructuring tool. The landlord challenged the CVA on three grounds: (1) that it was not a true scheme of arrangement within the meaning of the Insolvency Act because different classes of creditors would be treated differently and the CVA modified the landlords’ proprietary rights; (2) that the CVA was unfair... --- ### Important insolvency legislation changes: Directors of dissolved companies can be investigated by the Insolvency Service. - Published: 2021-05-17 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/important-insolvency-legislation-changes-directors-of-dissolved-companies-can-be-investigated-by-the-insolvency-service/ - Categories: Directors, Insolvency, Liquidation 17 May 2021: There are two terminal procedures for companies looking to formally close down; liquidation and strike off (dissolution). Liquidation, both voluntary and compulsory, is a formal insolvency process whereby the conduct of directors is investigated by the appointed liquidator/Official Receiver and is mandatory in every liquidation. The reasons for the investigations are to identify any wrongdoings or malpractice by the directors and, if any are found, the directors could face repercussions such as being personally liable for company debts or being disqualified to act as a director for up to 15 years. The dissolution process is when the directors of a company complete a DS01 Form and files it at Companies House. Once filed, Companies House will advertise in the Gazette that the company will be struck off from the register and, if no objection is received, the company will be dissolved. This process is not a formal insolvency process and the conduct of the directors does not currently get investigated. However, the new legislation included in the Ratings (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill will prevent directors closing a company via a dissolution process without being investigated for any wrongdoing or malpractice. The new measures will grant the Insolvency Service power to investigate the conduct of directors of dissolved companies and will hopefully stop directors, who may have acted fraudulently, using the strike off process as a legal loophole and misusing the process. The introduction of the new measures could be a direct result of the... --- ### Three new directors for BRI Business Recovery and Insolvency - Published: 2021-05-10 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/three-new-directors-for-bri-business-recovery-and-insolvency/ - Categories: BRI, Local News, News, Success Stories 10 May 2021: We are pleased to announce that Lauren Auburn, Tom Guthrie and John Rimmer, all Insolvency Practitioners (IPs), have been made directors of BRI. Lauren, Tom and John, who have been managing the Northampton, Milton Keynes and Coventry offices and teams respectively for several years, now have the added responsibility of overseeing the continued growth of the whole firm. These latest promotions show the commitment by BRI to develop its staff. John Warburton, an existing director, said that he was delighted that three experienced IPs had joined the board - all three have been with BRI for a number of years and it shows that all staff have the opportunity to progress within the firm. We will continue with our focus of supporting all our staff to help them to develop. For our existing contacts, they can be assured that the way we do business firmly remains in place, i. e. by providing the right advice, first time and every time, irrespective of the fee income for ourselves. For those who have yet to speak to us, we are more than willing to be an initial sounding board without any cost to help with all business recovery and insolvency matters. --- ### Directors – Your Lines of Duty - Published: 2021-05-05 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/directors-your-lines-of-duty/ - Categories: Directors, Insolvency, Liquidation 5 May 2021: You may be one of the 12. 8million people who recently tuned into the final episode of Series 6 of Line of Duty. If so, you will have noticed the not so subtle message regarding the duties of those in public office to the public they serve. You may also be a company director and if so, no doubt you will be aware of your duties as laid out within the Companies Act 2006. Hopefully, you are no ‘H/fourth man’ and therefore you do actually care somewhat about these duties and they guide your conduct. Ensuring that you ‘act within your powers’, ‘promote the success of the company’ and ‘exercise reasonable care, skill and diligence’ will already be staples of your working mind set. However, you may not be so aware of the further lines of duties placed upon a company director when a business becomes insolvent. If you find yourself in this position, additional care needs to be taken to ensure that no wrong steps are taken to avoid liabilities incurred due to nothing more than ignorance of the additional duties. When entering liquidation, the appointed liquidator will advise the director of their additional duties. Including co-operating with the liquidator, furnishing creditors with a statement of affairs as well as attending a meeting of creditors, if one is requested by creditors. The main concern however for many directors in these circumstances is more likely to be the duties already placed on them of which they were... --- ### Informal agreements – a win:win solution? - Published: 2021-05-04 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/informal-agreements-a-winwin-solution/ - Categories: News, Recovery, Success Stories 4 May 2021: Whilst it is widely anticipated that corporate insolvencies will rise in the coming months, we are seeing an increase in the appetite to try and structure informal full and final settlement in respect of a company’s liabilities. At BRI we always try to identify if there is the possibility of a better financial outcome for creditors than would be achieved if a company enters liquidation. Given that HMRC are now enjoying the status of a secondary preferential creditor in insolvency proceedings, we believe it is always best to try and see if an informal deal can be agreed with a company’s unsecured creditors to enhance their financial return. Clearly, the possibility of an informal deal is hugely dependent of the facts and financial position at the time advice is sought. Should you wish to know more about the possibility of an informal deal or would like to discuss any financial issues you might have, please contact any one of BRI’s management team who will be able to assist and advise you. --- ### How much more personal investment will I need to survive during and after the pandemic? - Published: 2021-04-27 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/how-much-more-personal-investment-will-i-need-to-survive-during-and-after-the-pandemic/ - Categories: Economy, News 27 April 2021: Many business owners have taken drastic steps during the pandemic to support their business and a new study has found that nearly 6 in 10 (59%) of SME owners loaned money to their business to help it survive. Despite this, many owners are still worried about their viability with more than a third (38%) feeling concerned that these entities may fold before the end of the year. A survey representing more than 23,000 small businesses has indicated the need to make sure they were well funded to deal with future disruption. 48% of these raised concerns of paying overdue invoices, reducing the impact on their credit ratings and supplier relations going forward. In order to survive, many have diversified, offering alternative products and services, while 26% believe that transitioning to online sales and services was key. While businesses on our high streets have seen a welcomed increase in revenue, 4 in 10 small business owners still believe further personal injection will be needed to finance them during the next 12 months. If you or one of your clients find yourself in a situation where you need to ascertain whether further injection of funds will help with survival beyond the next 12 months, please contact one of our management team at BRI Business Recovery and Insolvency to discuss in detail and explore recovery options available. --- ### Has the pandemic changed our spending habits? - Published: 2021-04-22 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/has-the-pandemic-changed-our-spending-habits/ - Categories: BRI, Economy, Insolvency 22 April 2021: With the shops and business now back open, it appears that people have been flocking back to spend their hard-earned cash on the latest tech, clothes, shoes, and getting their hair and nails done. The huge queues which formed outside some pubs and High Street retailers in the UK are just some examples of how keen people are to get back out and socialise after a third lockdown, which seems to have lasted an age. But for some, this is not the case, for a couple of different reasons. According to a recent survey, a third of people who have managed to save money during the pandemic are not planning on spending it. Another third will spend less than half of what they’ve managed to save during the lockdown. As people have driven and shopped less, cooked at home, and found ways of exercising that didn't involve going to the gym, it seems that many want to carry on some of the financial benefits of the lockdown lifestyle. Staff at BRI have benefitted from some changes to our lifestyles, seeing improvements in our health (and weight! ) from cooking more meals at home, and also having more time to exercise as a result of working from home. We could not completely rule out shortly visiting the local pub for a nice cold pint and a burger though. On the flip side of the coin, the other reason that some people are hesitant to spend their lockdown savings... --- ### Substantial dividend paid out – six months after appointment - Published: 2021-04-19 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/substantial-dividend-paid-out-six-months-after-appointment/ - Categories: BRI, Insolvency, Liquidation, News, Success Stories 19 April 2021: BRI were appointed Liquidators in an insolvent matter in September 2020 and, in an effort to maximise realisations prior to formal appointment, BRI advised the directors on the best strategy. BRI are pleased to report that, in April 2021, the sum of £116,000 has been paid to creditors, which equates to 62. 5 pence in the £. BRI will always look at ways to avoid a formal insolvency procedure. However, if this is not possible, then the planning and timing of formal instruction is key. Whilst not all insolvent matters we deal with pay such a significant dividend, we are very pleased with the outcome in this matter. Should you be a director of a company or you have a client that is in need of advice, please contact any one of the management team. --- ### Brave New (almost-post-Covid) World - Published: 2021-04-14 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/brave-new-almost-post-covid-world/ - Categories: Economy 14 April 2021: With many businesses re-opening as per the Government road map, no doubt many owners will be reviewing the viability of their business in these uncertain times of restricted customer market places. Discussions are likely to be held with accountants and advisors while dusting off pre-Covid excel spreadsheets and cash flows. However, given changes witnessed in consumer habits during the last year (albeit largely forced upon customers), are previous forecasts the correct starting point? We have noted from recent enquiries that directors, already dealing with the pressures of planning for Covid restricted trading, also face some other less expected challenges. These include changing employee attitudes - from a preference to working from home to their work/life balance being reviewed entirely post furlough - as well as changing customer habits, with customers finding other methods of purchasing goods and services. In light of changes such as those above, business models and forecasts should be scrutinised so that owners have a clearer picture of what lies ahead for their business. Specifically, a focus on the accounting figures following the first lockdown will help identify how the business may recover over the coming months. However, change doesn’t just bring challenges it also brings new opportunities. Initially there are new lines of credit via the Government backed rescue loans, as well as potential insurance pay outs with respect to business disruption claims. More generally, lockdown may have provided time to consider new revenue streams or more efficient ways of delivering products with... --- ### Temporary Corporate Insolvency Provisions extended again > A snapshot of the extension of the temporary measures provided for in the Corporate Insolvency and Governance Act 2020. - Published: 2021-04-08 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/temporary-corporate-insolvency-provisions-extended-again/ - Categories: Economy, News 8 April 2021: The Government have recently confirmed a further extension to the temporary measures provided for in the Corporate Insolvency and Governance Act 2020 (the Act) to support businesses who are encountering financial difficulties as a result of the pandemic. Below is a snapshot of the measures extended - the full article can be found here Free-standing moratorium for UK businesses Prohibition on termination clauses in supply contracts Restrictions on winding-up petitions Suspension of wrongful trading liability Whilst these temporary provisions are helpful, if your business is having financial difficulty, it is imperative that you seek early advice on the options available. Any one of BRI’s management team is always available to discuss these options or any other insolvency matter so please do make contact. --- ### Are we old fashioned? - Published: 2021-03-30 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/are-we-old-fashioned/ - Categories: BRI, Directors 30 March 2021: The oldest form of communication is verbal communication; speaking to one another in a factual or story telling fashion. This was followed by written communication in the form of books, letters and newspapers. Then came along different forms of technological communications, the telephone and fax machine being among some of the first. This year we celebrate the 50th birthday of e-mails. This form of communication soon became one of the world’s primary form of communication, much quicker than a letter in the post to get the message across to people around the world and, for many of us, it soon became second nature to check our e-mails periodically. There have been other forms of communication which, for many of us, our children will not know of unless they learn it in a history lesson. Skype and smart phones made visible communication that one bit easier and during lockdown we have been even more fortunate to hold meetings by Zoom and other mediums. Is it great that we can hold statutory meetings virtually and that correspondence takes away the need to get to a certain destination at a certain time? Call us old-fashioned but BRI still like the personal touch, the handshakes and meetings around a table and we dearly miss them. When we can, we will offer face to face meetings with clients and offer the personal touch when dealing with their financial difficulties and addressing employees and creditors. Please do not hesitate to contact one of... --- ### Coming out the other side - Published: 2021-03-26 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/coming-out-the-other-side/ - Categories: BRI, Recovery 26 March 2021: People think that the insolvency side of our business is busier during a recession. They also assume that business insolvencies have increased during the lockdown. They are wrong on both counts. During a recession a business in difficulty may “just about manage”. It is when things start to pick-up again that they can’t get their hands on the working capital required to fund an increase in trading. They over-trade and fail for want of cash. During lockdown the Insolvency Courts have largely been closed and restrictions on petitions against companies has meant that liquidation numbers are significantly down. Businesses have, with support through furlough payments and loans, been able to “hang in there”. However, as the green shoots of spring emerge and the end of lockdown appears on the horizon the pent-up storms look set to be unleashed. Not all businesses that have managed to hang in there this time will make it If you are worried about steering a course through the turbulent times that lie ahead call us. We will happily meet you, virtually or, in due course, in person, and be a sounding board. We can help put your worries and concerns into perspective and suggest ways of managing and mitigating them. We’ve been here before. You want the survival of the business for the future, not another line in the obituaries column. BRI pride themselves on giving the right advice first time, every time. Please call any one of the experienced management team... --- ### Business optimism has increased since the roll-out of the vaccines in response to Covid-19 - Published: 2021-03-23 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/business-optimism-has-increased-since-the-roll-out-of-the-vaccines-in-response-to-covid-19/ - Categories: Economy, News 23 March 2021: Statistics showed that 69% of firms expect an increase in business activity and that trading levels will return to normal either by the end of this year or the first half of next year - hospitality businesses being the most confident. The 2021 UK Hospitality Snapshot Survey revealed encouraging signs of confidence amongst the sector, even before the Prime Minister set out his roadmap to recovery and extended support measures were announced in the March Budget. The survey also highlighted that:- Three quarters of respondents who set up delivery and takeaway services as a result of the pandemic plan to continue to provide this service as restrictions are eased and 78% of businesses who have switched to online sales (including DIY meal kits) plan to continue to offer these; Pubs and bars led the charge towards new technologies, with nearly half of those surveyed implementing ordering and payment apps as part of social distancing measures; these technologies are here to stay for 95% of hospitality businesses who have adopted them during the pandemic; and Looking ahead, changes in working patterns, changes in consumer preferences or behaviours, and an ongoing adherence to distancing and hygiene measures were anticipated to be the three most significant impacts arising from the pandemic. However, despite being most confident about the future of their businesses, hotels estimated that their return to normal trading would take longer, in what is perhaps a reflection of the likely slower return of normal tourism and travel. Compared... --- ### Help for the High Street - Published: 2021-03-18 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/help-for-the-high-street/ - Categories: Insolvency, News 18 March 2021: As the nation takes tentative first steps towards coming out of this most recent lockdown, questions are being asked. What will the high street of the future look like? Who will be left standing? How will those facing financial issues be able to best address them? The fact is that before Covid even arrived the high street was already in turmoil. A number of big names were entering formal insolvency processes, such as CVAs, which caused many other retail outlets and suppliers financial hardship. The insolvency world has been reviewing what can be done to help, within the confines of the legislation, and, on 1 April 2021, there will be a revision to Statement of Insolvency Practice 3. 2 – Company Voluntary Arrangements. Chairing the working party responsible for this review, and representing accountancy body ACCA, was one of BRI’s Insolvency Practitioners. Clearly, in the year since the start of the first lockdown, the high street has seen many changes and far fewer shoppers. Those working in, or supplying for, retail are going to have to re-think their working practices and relationships and hopefully they can move forward positively. If in the event a CVA is necessary, hopefully the revision of SIP 3. 2 will help all those affected as far as possible. At BRI we always look for win:win solutions. We have our finger on the pulse and are happy to help with an initial diagnosis free of charge and without obligation. If you supply a... --- ### 2nd Class Preference Claims – 3 months on - Published: 2021-03-16 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/2nd-class-preference-claims-3-months-on/ - Categories: Creditors, HMRC, News 16 March 2021: Given the seismic events of 2020 and the myriad of initiatives introduced by the Government last year it may well have not come to your attention that HM Revenue & Customs (“HMRC”) were reinstated as a preferential creditor within insolvency processes. This was a position they previously enjoyed prior to the 2003 Enterprise Act. 17 years on and HMRC have regained their preferential status in respect of certain debts – namely for funds that are deemed to be held on behalf of others, such as VAT, employee PAYE and employee NI contributions. Preferential status essentially means that HMRC are entitled to dividends from any surplus funds in the liquidation prior to non-preferential creditors, such as suppliers, landlords, utility providers or customers. It is however worth noting that HMRC now have secondary preferential status, which is to say that they sit behind certain claims relating to elements of employees redundancy and pension claims. The second class preferential status only came into effect on 1 December 2020 so it may be a little too early to accurately assess the impact on the returns payable to non-preferential creditors within insolvency processes. However, a number of recent examples have already demonstrated to us that the impact will be significant. Our initial enquiries often involve reviewing the financial position of a distressed company and various outcomes depending on actions taken by the Company. Within the last few months it has been noticeable that when assessing the outcome from an insolvent process the... --- ### The King is Dead - Long Live the King - Published: 2021-03-10 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/the-king-is-dead-long-live-the-king/ - Categories: HMRC, News 10 March 2021: Another budget has come and gone; another flurry of solvent liquidations (Members Voluntary Liquidations or “MVL”) preceded it. It came as something of a surprise to many that there was virtually nothing in the Spring Budget 2021 about capital gains tax (“CGT”). The general expectation was that rates would, surely, increase and/or that some of the available reliefs would again be reduced or dispensed with. Entrepreneurs Relief, in particular, appeared likely to be in the firing line. But none of these fears or expectations were realised and the Insolvency profession can now look forward to another rush of MVL in the run up to the next Budget. Commentators on tax matters report that this apparent “light hand” on the levers of power is most likely due to the Chancellor awaiting the Office of Tax Simplification’s second report on CGT, originally expected early this year, before taking action. If you have a client with a solvent company and they are considering how best to realise the funds within please contact BRI Business Recovery and Insolvency sooner rather than later. As much as we enjoy the excitement of getting multiple distributions “over the line” the day before a budget we now have a number of weeks and months ahead of us and time to plan and do things in a more orderly fashion. As ever our initial advice is free of charge and without any obligation. --- ### Breathing Space and Best Advice - Published: 2021-03-04 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/breathing-space-and-best-advice/ - Categories: Recovery 4 March 2021: With the introduction of a new “breathing space” regime for individuals with debt related issues about to start we have become aware of a case being conducted by one of the firms that will be a debt advice provider who is authorised to oversee the scheme. We think this sad story is well worth sharing as it flies, we think, in the face of what a reasonable person on the Clapham Omnibus would think was sensible for the individual involved. Some 10 years ago an individual went to a debt advice organisation and sought help. They suggested a Debt Management Plan (“DMP”). The individual has now been in that plan for 10 years paying contributions regularly throughout. Continued payments are now proving too difficult due to C19 related issues – hence seeking advice. Over £60k has been paid in to the DMP so far. The estimated remaining debt is some £140k and the estimated completion date is the year 2067. If this individual had gone bankrupt then the matter would, most likely, have concluded within one year with, perhaps, an income payments/order lasting a further two years. They would have been free of the original debt for 7 years by now. If they had pursued an Individual Voluntary Arrangement (“IVA”) then, most likely, they would have been out after 5 years, assuming their good compliance with the DMP had continued through the IVA. They would have been free of the original debt for 5 years by now.... --- ### Just in time… - Published: 2021-03-02 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/just-in-time/ - Categories: BRI, Creditors, Recovery, Success Stories 2 March 2021: A director was urged to contact BRI’s Northampton office to discuss his options. It took the director some weeks to make contact and in that time had sought “advice” from third parties. From an initial phone conversation with the director, from the third party advice given, he did not wish to provide full company details for fear that we would inform him to stop trading immediately and to not to pay the employees’ wages as he was looking to pay these that day utilising the Company’s overdraft. The sum payable was significant. Having established that the company’s bank held no debenture BRI asked whether the director had provided a personal guarantee in respect of the overdraft. The director was firmly of the opinion that no guarantee had been provided and was to pay the wages and then look to instruct BRI to assist him in placing the company into creditors’ voluntary liquidation. We were concerned that it was likely that the director had provided a guarantee, so we immediately contacted the referring accountant and urged that he contact his client asking him to meet with BRI to discuss matters. A meeting was held the same day whereby the concerns regarding the guarantee were discussed. The director was still adamant no guarantee had been provided. During the meeting, the director received a text from his partner informing him that he had indeed guaranteed the overdraft to £25,000. Payment of the wages would have utilised this overdraft in full.... --- ### Roadmap to recovery - Published: 2021-02-23 - Modified: 2024-03-20 - URL: https://www.briuk.co.uk/roadmap-to-recovery/ - Categories: News 23 February 2021: Boris Johnson yesterday announced a four step roadmap out of lockdown and, even though the light at the end of the tunnel is now in sight, businesses in the retail and hospitality sectors, which are presently closed, may need to consider how their business can survive until the suggested earliest opening date of 12 April 2021. The four steps are: 8 March 2021: Step 1A Schools and colleges will reopen. Up to 30 people will be allowed to attend a funeral and up to 6 for a wedding or a wake. People are allowed to leave their homes for recreation as well as exercise outdoors. All other restrictions remain the same. 29 March 2021: Step 1B This is the earliest date that 2 households or up to 6 people will be allowed to mix outdoors. No household mixing indoors will be allowed. Outdoor sport and leisure facilities will be allowed to open, which also includes organised outdoor sport for children and adults. At this stage, the Government is still advising to minimise travel and there is still a ban in place on holidays. 12 April 2021: Step 2 No earlier than 12 April, non-essential retail, hairdressers/salons/close contact services, outdoor hospitality, plus self-contained holiday accommodation and outdoor attractions will be able to open. Pubs and restaurants will be able to open for outdoor service only. At this point, the number of people allowed to attend weddings, wakes and receptions will increase to 15 people. There will still be... --- ### Have Last Orders Been Extended? - Published: 2021-02-17 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/have-last-orders-been-extended/ - Categories: Economy, News 17 February 2021: As the UK is slowly approaching 12 months of lockdowns, tiers and restrictions it is fair to say that the hospitality sector has seen some of the biggest challenges in trying to continue to operate and none more so than the traditional British watering hole aka the pub. The government has provided a certain level of support to the hospitality sector and the ‘Eat Out To Help Out Scheme’ proved a financial success to those who were able to serve food, however those who couldn’t, remained shut with little additional help. An Office of National Statistics survey undertaken in November 2019 claimed over one in four pubs in the UK were under threat of closing their doors for good. Since this survey, the UK has seen tier restrictions throughout their busiest period in December and another national lockdown to start 2021. With nearly a quarter of all pubs included in the survey stating they had no cash reserves to last another month and only one fifth confirming they have enough cash reserves to last a total of 3 months, it may sound like the last orders bell could already be ringing for many. However, on 15 January 2021, the Supreme Court passed a ruling that insurers would now have to pay out on claims regarding losses to businesses who held Business Interruption Insurance (BII) for the time spent closed during and since the UK’s initial lockdown in March 2020. This ruling is due to assist tens of... --- ### Pay As You Grow (“PAYG”) - Published: 2021-02-11 - Modified: 2021-02-11 - URL: https://www.briuk.co.uk/pay-as-you-grow-payg/ - Categories: News 11 February 2021: As the country was plunged into lockdown in early 2020, one of the support packages available to business was the bounce back loan. These were available with no interest and no payments during the first twelve months followed by a five year repayment plan. Quite generous terms reflecting the challenges we faced. However, no one predicted that the pandemic would hit us as hard as it did. As such the Chancellor recently announced PAYG whereby we could have more favourable repayment terms in order to take the pressure off those businesses that may not survive and to prevent mass corporate failures. Borrowers can use these options individually or in combination with each other: Extending the loan term from six to ten years. Paying the interest only for six months, which they can trigger a maximum of three times during the loan term. Taking a six month repayment holiday once during the loan term. If you are struggling with cash flow in your business then this could be one option to stop you becoming the next insolvency statistic and ensuring that you trade on. We help more customers to stay in business and to trade on than we assist to close. If you want to explore your rescue options early on and find out what else is available to you, please contact any of the BRI Business Recovery and Insolvency management team who would be happy to assist. --- ### Annual corporate insolvency statistics 2020 - Published: 2021-02-03 - Modified: 2021-02-03 - URL: https://www.briuk.co.uk/annual-corporate-insolvency-statistics-2020/ - Categories: News 3 February 2021: The statistics published on 29 January 2021 show a fall of 27% in corporate insolvencies in 2020 – the lowest figure for more than a decade. From BRI’s perspective this is not a surprise given the support the Government has introduced for businesses since the onset of the pandemic together with the suspension of creditors' ability to take action. However, the Government support/suspension of creditor action and will, naturally, have to come to an end and, when it does, we expect the number of corporate insolvency levels to, unfortunately, increase at some pace. The next 12 months and beyond are certainly going to be very challenging for business owners and the key for survival is to take early advice from professional advisors. Here at BRI we provide this advice and, more importantly, provide clients the right advice, first time and every time. Should you have concerns about a client’s viability going forward or you are a business owner with similar concerns, please call any one of BRI’s management team to see if they can help you avoid being included in future corporate insolvency statistics. --- ### Changes to strengthen the Prompt Payment Code - Published: 2021-01-25 - Modified: 2023-09-06 - URL: https://www.briuk.co.uk/changes-to-strengthen-the-prompt-payment-code/ - Categories: Creditors, Directors, News 25 January 2021: In most industries the big players can sometimes exert undue influence over their smaller suppliers by withholding or delaying payment for goods and services for a considerable length of time. Often a small supplier will do the majority of their work for just one larger customer and any such delays have an acute impact on their cash flow. It isn’t hyperbole to say that late payments can result in the closure of a business – we have dealt with many liquidations where the insolvency of a company was predicated on significantly late debtor payments. The Prompt Payment Code (PPC) was introduced to tackle the issue and improve the supply chain for UK firms and parties who signed up to the PPC were encouraged to pay their suppliers on time, give clear guidance on payment procedures to their suppliers, and encourage good practice. Unfortunately, despite the introduction of the PPC and 3,000 companies signing up to it, poor payment practices are still common with many payments still being delayed well beyond the current 60 day target. For example, Carillion, notorious for late payment to its smaller suppliers, had signed up to the PPC before its collapse. The government has therefore just announced that the PPC will be strengthened so that companies signed up to it will now be obliged to pay small businesses within 30 days – half the time outlined in the current PPC. It is currently estimated that late invoices totalling £23. 4 billion are owed... --- ### A life-line for small businesses - Published: 2021-01-19 - Modified: 2023-09-07 - URL: https://www.briuk.co.uk/a-life-line-for-small-businesses/ - Categories: Economy, News 19 January 2021: On 15 January 2021, in a landmark ruling, the Supreme Court ruled small businesses could receive Covid 19 insurance pay-outs from their business insurance firms. Receiving payments from business interruption insurance policies following the first lockdown may provide small businesses the lifeline they need to survive the current lockdown. To help these small businesses stay afloat, the pay-outs may provide the funds needed to arrange restructuring and/or repayment plans, buying these businesses the time needed for when the lockdown is lifted and they can freely trade again. If you or one of your clients have received this life-line and are in a position to consider reaching repayment solutions, please contact one of our management team for a strictly confidential chat. --- ### What I did in my holidays – my first year at BRI - Published: 2021-01-19 - Modified: 2023-09-07 - URL: https://www.briuk.co.uk/what-i-did-in-my-holidays-my-first-year-at-bri/ - Categories: BRI, Local News 19 January 2021: Well... . it has been interesting to say the least! I joined BRI in December 2019 as a trainee administrator. I was expecting a challenge but I could not have guessed, in a million years, what the next year would bring. The first few months flew by, everyone was very patient, I’m sure I asked a few too many questions. Slowly the ‘new job nerves’ started to disappear and I worried less about looking foolish or asking the wrong questions and enjoyed getting stuck in with the case work. I could call this a learning curve, but there was no curve - it was a vertical ascent. I had not slept so well in a very long time! After finally getting to grips with the franking machine, figuring out which coffee mug belongs to who, learning why we don’t use the lift and finding the best route for my commute, ‘Lockdown 1’ came into force. Suddenly I found myself at home and everything was different, again. Zoom etiquette, post arrangements, ‘going digital’ – a whole host of challenges to overcome. Though, this time everyone was in the same boat and, remarkably, my colleagues were still incredibly patient despite the fact that I had more questions than ever. Throughout the year we have all adapted to the changes and I expect there will still be many more to come. So when I was asked to write about my first year with BRI, I found it incredibly hard to... --- ### Hang in there… > BRI continue to help businesses weigh up their options and look at survival opportunities. Contact us for a free and confidential chat. - Published: 2021-01-13 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/hang-in-there/ - Categories: Economy, News 13 January 2021: Rishi Sunak has warned that Britain’s economic performance will worsen before the roll out of the coronavirus vaccine helps to improve the outlook for jobs and growth. The Chancellor told the House of Commons that, while the vaccine provides hope, there was a need for tougher national restrictions to contain the spread of the virus and that this would have a “further significant economic impact” adding that “the economy is going to get worse before it gets better”. “The road ahead will be tough. Now is the time for responsible management of our economy, taking the difficult but right long-term decisions for our country. ” Given the bleak outlook we continue to help businesses weigh up their options and look at survival opportunities. If you or your clients need our assistance, please contact any one of our management team for a free and confidential chat. --- ### BRIGS 2020 winner: Paul Currie of DFA Law > BRIGS 2020 winner - We have pleasure in congratulating Paul Currie of DFA Law who was crowned BRIGS champion for 2020. - Published: 2021-01-06 - Modified: 2024-05-10 - URL: https://www.briuk.co.uk/brigs-2020-winner-paul-currie-of-dfa-law/ - Categories: Events, Local News 6 January 2021: 2020 certainly was a year none of us will forget and, whilst it has been difficult to safely host networking events, we have been extremely lucky that BRIGS was, in the main, able to continue safely with many precautions being put in place. We have pleasure in congratulating Paul Currie of DFA Law who was crowned BRIGS champion for 2020. A consistent performer and taking the title deservedly from Tom Low. Again, congratulations to Paul and enjoy the trophy, and also thank you to everyone who attended BRIGS throughout 2020. Given the current lockdown BRIGS for 2021 is on hold at the moment but as soon restrictions are eased, we will look to re-start the event. --- ### Alternative recovery options for distressed businesses - Published: 2020-12-14 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/alternative-recovery-options-for-distressed-businesses-3/ - Categories: BRI, Recovery, Success Stories 14 December 2020: Any year end naval gazing is being avoided in this December article to instead focus on the very opposite i. e. looking out at who we know and how they can help you or your clients. We do appreciate that our company name includes the word ‘Insolvency’ but it does begin with ‘Business Recovery’. Our aim is often to make clear to potential clients that our focus is very much on the first two words in the title and we always hope to help a company achieve this if possible. Achieving a recovery of a business can involve a sale to a third party or potentially it can come in the form of introducing additional investment or finance. When helping a director assess which way forward is the most appropriate for a business, as a firm with over 35 years standing in the industry, we have made many reliable contacts across a range of services, who can be contacted to provide support to distressed companies. Such contacts include specialists in re-finance, lending and asset/business sales. Our contacts in the world of finance specialise in finding solutions when traditional lenders are unable to assist and we also have strong existing relationships with agents who have access to a vast database of pre-approved parties with interests in acquiring businesses in an array of different sectors. With a network of other professional on speed dial it is not unusual for us to put directors in touch with a party who... --- ### Last Orders - Published: 2020-12-09 - Modified: 2024-03-20 - URL: https://www.briuk.co.uk/last-orders/ - Categories: Economy, News 9 December 2020: For many publicans, restaurateurs and others in the hospitality industry last orders might be about to be called. Whilst unfathomable amounts of money are being made available to keep businesses alive, combined with the protections afforded to them from landlords, creditors and HMRC, it may still not be enough to see those in the hospitality sector through until normality resumes. Eat-Out-To-Help-Out saw a massive boost in diners but along with that probably came a massive boost in coronavirus infections. Not every local pub that once relied on diners and drinkers can relaunch themselves as a successful takeaway restaurant and make the sorts of money they were doing before. The costs of repurposing their premises do not make this a viable option so many are choosing to simply remain closed. Nor can they survive by selling scotch eggs alone. Combine all of this with lockdown and the tiers system over the peak trading season and we have a recipe for financial disaster. Business owners in hospitality need to be careful, creative and resourceful in order to survive this winter. At BRI Business Recovery and Insolvency we are advising a number of stakeholders of pubs, restaurants, cafes and venues about their options and specifically how they try to ensure they will be open for business in Spring/Summer 2021 and beyond. If you would like to find out more about how we can help you to avoid becoming a client of ours then please do speak any of the management... --- ### Festive Period like no other - Published: 2020-12-02 - Modified: 2023-09-07 - URL: https://www.briuk.co.uk/festive-period-like-no-other/ - Categories: BRI, Local News 2 December 2020: In normal circumstances around this time of year one might be dreaming of a white Christmas or thinking of a little Mistletoe and Wine but this year we are just dreaming of a bit of normality. 2020 has been the year of unprecedented events and it has meant changes to all our routines, including Christmas. For the first time, BRI’s staff members will not have the opportunity to meet and greet their professional contacts at our annually hosted drinks and lunch events. This is a great shame as we enjoy the opportunity to catch up with our regular contacts and thank them for their support throughout the year. We do look forward to hosting again soon and welcoming contacts to our events. We would also normally be arranging for BRI’s team from our six offices, Banbury, Coventry, Hitchin, Milton Keynes, Northampton and Spalding to get together for the annual Christmas lunch (which can sometimes continue into Christmas evening drinks). At the Christmas lunch it has become our custom for colleagues to exchange secret Santa gifts, many with a comical twist. However, 2020 has been the enemy of many areas of enjoyment for all of us and the usual festive events are no exception. Therefore, as we are not able to meet in person we have decided that funds normally used for purchasing secret Santa gifts will instead be put to use by supporting a good cause. In this regard we are very pleased to be making a... --- ### Substantial return to creditors – what great news! - Published: 2020-11-25 - Modified: 2023-09-07 - URL: https://www.briuk.co.uk/substantial-return-to-creditors-what-great-news/ - Categories: BRI, Liquidation, Success Stories 25 November 2020: When appointed as liquidators of an insolvent company, we make every possible effort to achieve the maximum return for creditors. The size of the distribution will, of course, depend on the value of the assets held by the company at the time of liquidation. It is always therefore extremely rewarding for us when asset realisations allow us to make a substantial distribution to creditors, such as in a recent matter whereby BRI’s Northampton Office have recently paid a dividend of 95p in the £ to unsecured creditors. No doubt this dividend will be very welcome in these financially uncertain times. --- ### Local Authorities budgets stretched to bursting > Local authorities find themselves under financial pressure like they may never have felt before. Talk to BRI about insolvency matters. - Published: 2020-11-19 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/local-authorities-budgets-stretched-to-bursting/ - Categories: Bankruptcy, Economy, News 19 November 2020: The recent news that Croydon Council has declared effective bankruptcy by filing a Section 114 notice is a timely reminder about the precarious nature of a local authority’s finances. The job of balancing the books was already very difficult and the coronavirus pandemic is likely to have a detrimental impact on this, not just currently but potentially for a significant length of time once the pandemic is over. The findings of a survey by the County Councils Network, published the day after Croydon Council filed their insolvency notice, revealed that eight in ten of England’s local councils say that they will have to make “damaging” cuts to services in order to avoid insolvency. In the Midlands, Nuneaton and Bedworth Borough Council has said that it expects the pandemic to cost them £3. 6m and has announced job losses and cuts to services. Councils are bringing in less income due to the lockdowns implemented across the country but are seeing their expenditure rise due to having to protect more vulnerable people in their care. Unlike central government, local authorities cannot borrow to finance day-to-day spending and when their reserves have been exhausted must make significant cuts to public services. It has yet to be determined how the overall cost of the pandemic is going to be met. This could be by tax increases or a reduction in public spending or a combination of both. What is certain is that local authorities are going to find themselves under financial... --- ### CVA? Administration? Maybe just a letter and a nice chat. - Published: 2020-11-12 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/cva-administration-maybe-just-a-letter-and-a-nice-chat/ - Categories: Creditors, Directors, Insolvency, Recovery, Success Stories 12 November 2020: Forgive us for beginning this article by repeating a point made many times before but the formal appointments that we deal with really are just the tip of the iceberg of enquiries that make up our working days. A very apt recent example of this, which happens to also provide a fine example of us delivering on our motto of providing the right advice first time, every time regardless of the fee involved for us, was that of a company that sort our advice with the thought that a formal insolvency process was very much inevitable. The directors of the company were in receipt of a petition for their winding-up for a debt due to their majority creditor and which pre-dated the current pandemic. The directors were greatly concerned that their options involved either a voluntary insolvency process or the petition leading to the company being wound up by the Court. Their concerns being based on the age of the debt and the creditors growing frustration at the lack of promised payments. Due to some technical issues surrounding company structures and contractual matters, discussions to resolve the position took place between the company, their solicitor and us. The directors’ suggested solution was that of a company voluntary arrangement (“CVA”), a procedure they were aware of and thought it may help. The solicitor, on the other hand though that an Administration appointment would provide a more suitable option. Keeping in mind that either a CVA or Administration process... --- ### All change but our advice remains the same – contact BRI early - Published: 2020-11-03 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/all-change-but-our-advice-remains-the-same-contact-bri-early/ - Categories: BRI, News 3 November 2020: The initial draft of this article was written when it was anticipated that the end of a range of Government support schemes and mortgage holidays would come into force on 1 November 2020. The Government has since announced there will be a further lockdown from 5 November 2020 and has, and quite rightly so, kept the “status quo”. However, this support will come to an end sooner or later and it is vitally important for both companies and individuals to take early advice if their finances are likely to suffer over the upcoming winter period and beyond. At BRI Business Recovery and Insolvency, we deal with financial issues for both corporate clients and individuals and can assist in helping those recover – the chances of which are significantly enhanced if early advice is sought. The BRI management team have many years’ experience in dealing with insolvency related matters and recovery options. Please contact anyone of the team should you need to discuss worrying financial issues. We really can help! --- ### Is the tier system leading to more Zombie companies? - Published: 2020-10-28 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/is-the-tier-system-leading-to-more-zombie-companies/ - Categories: Economy, Insolvency, News 28 October 2020: Since tighter coronavirus restrictions were introduced with the three tier system, more and more companies with little financial support are turning into Zombie companies. Hospitality is the hardest hit with buzzing bars and restaurants struggling, especially those now in the 2nd tier which bans households mixing indoors. Some places have been forced to reduce opening hours to only a few hours a day or to not opening at all on specific days. Annual turnover has significantly diminished and weekly takings reduced to a few hundred from a few thousand for many owner managed businesses. These businesses feel it is impossible to operate in the 2nd tier and have become zombies until the restrictions are lifted again. Many businesses are doing the number crunching with the assistance of their accountants. Forcing businesses to use the grants and bounce back loans to pay redundancy costs as they tried to explore survival options. For some businesses future support packages and grants will be ‘too little and too late’ and these companies will be tipped from being a zombie company forced to be another insolvency statistic. If you or your clients find themselves in this situation and wish to discuss hopes of survival before insolvency, please contact one of our management team for that final lifeline and expert advice. --- ### Record borrowing outside of world wars > If your business is facing uncertain times and you need to discuss plan A, B, C, D… then we’re here to help. - Published: 2020-10-20 - Modified: 2025-03-31 - URL: https://www.briuk.co.uk/record-borrowing-outside-of-world-wars/ - Categories: Economy, News 20 October 2020: With the UK in one of its fastest debt spirals it is going to take a generation to balance the books. The table below shows the only comparable gap in GDP vs. debt... war. How we move forward we don’t yet know. The chancellor’s budget keeps getting postponed and understandably so. How can you plan for an ongoing pandemic that affects and cripples a whole nation without any sign of abatement or a known cure? There are ultimately winners and losers which only seek to increase the rich poor divide. Focussing on the losers, those on national minimum wage working in retail, hospitality and leisure have no certainty over their jobs. Likewise their employers have extreme uncertainty over the future of their businesses. But as you can see from the graph below we do bounce back. The whole of the UK will need to come together to eliminate our debt pile via a possible mix of tax rises and spending cuts; we don’t yet know how steep of for how long these will be. A similar approach needs to be taken in business, finding new methods to market and sell your products or services whilst reducing overheads. Preserving cash when cash is king. If your business is facing uncertain times and you need to discuss plan A, B, C, D... then we’re here to help. Please contact any of the BRI Business Recovery and Insolvency management team to discuss your options. --- ### Helping our communities - Published: 2020-10-14 - Modified: 2023-09-07 - URL: https://www.briuk.co.uk/helping-our-communities/ - Categories: BRI, Local News 14 October 2020: Every year here at BRI we bring our offices together for a charity day, whereby a day of our staff’s time is given to volunteer at a local charity. Unfortunately this year, due to the pandemic, we have been unable to support a charity in this way. However, we still wished to provide help to our local communities. We therefore asked staff if they knew of any good causes local to our offices which may benefit from our support. One of our administrators in the Milton Keynes office, Joe Carroll, helps run a Sunday league football team and acts as treasurer for the club. Joe has mentioned that the current pandemic brought last season to a premature end and prevented any close of season fundraising activities from taking place. This had a noticeable impact on the finances of this small community club. Therefore, we were extremely pleased to be able to sponsor Joe’s club and provide them with rain jackets for the current season. Here at BRI we are just as proud to be able to help out a small local football club as we are providing the correct guidance to businesses, often preventing them from requiring our formal services. We spend a lot of our time providing guidance to people in need, for free, with no expectations of anything in return. BRI are aware of the challenges 2020 has brought with it and we are committed to helping as best we can. So far this year... --- ### Further substantial payment to HMRC - Published: 2020-10-08 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/further-substantial-payment-to-hmrc/ - Categories: HMRC, Recovery, Success Stories 8 October 2020: We posted in March on this particular matter whereby £250,000 was paid to HMRC in respect of a Company Voluntary Arrangement (“CVA”) that is being dealt with by BRI Business Recovery and Insolvency’s Northampton office. We are pleased to report a further substantial payment of £150,000 has been paid to HMRC. The company had benefitted from a short payment holiday given the current situation and has continued to meet its substantial monthly contribution obligations under the terms of the CVA to ensure this latest distribution can be made. A CVA is, generally, an insolvency procedure that tries to help a company recover and avoid formal liquidation. Should you require further information and guidance in respect of a CVA or any other insolvency related matter, please contact any one of BRI’s experienced management team. --- ### Covid-19 wiping out fashion - Published: 2020-10-06 - Modified: 2023-09-07 - URL: https://www.briuk.co.uk/covid-19-wiping-out-fashion/ - Categories: Economy, News 6 October 2020: Lockdown has knocked the fashion industry off its pedestal. Not only have shops and factories closed but the way we work, travel and, consequently, shop has been upended, prompting a dramatic reset in our attitudes to consumerism. The swinging Sixties, Seventies punk and Nineties grunge transformed society and Covid is wiping out fashion trends. With so many of us working from home and restrictions on parties, holidays and for many people, disposable income currently being a distant prospect, many of us have decided we don’t need anything at all. The pandemic has taught us that we don’t miss “stuff”. Even those who do still have a job and some spare cash know this is no time to be showing off anything flashier than your new joggers and hoodies. Retail sales are down by double digits in every major market. Many of the brands and retailers that once filled the high streets and malls here and abroad are dying. J Crew, Oasis, Warehouse, Debenhams, Laura Ashley, Cath Kidston, Forever 21, Monsoon and Jigsaw, to name just a few, have either tipped into insolvency or teeter on the brink. Analysts say, globally, the fashion industry will contract by 27-30% by the end of 2020. That is five times worse than the impact of the 2007-08 global financial crisis. The British Fashion Council predicts one third of the big fashion names may never recover. If you or your clients have been impacted by the downturn in sales and revenue in... --- ### More High Street restructurings - Published: 2020-10-01 - Modified: 2023-09-07 - URL: https://www.briuk.co.uk/more-high-street-restructurings/ - Categories: Insolvency, News, Recovery 1 October 2020: Cote Brasserie is the latest name on the High Street to undertake a formal insolvency process in order to restructure its operations. The chain of restaurants was acquired by new investors via a pre-pack administration, securing the future of 94 restaurants and 3,148 jobs. Only three outlets operating under the group’s other brands will close. A pre-pack administration is an insolvency process whereby the marketing of the business takes place and a sale is agreed prior to the company being placed into administration, with the appointed administrator(s) effecting the sale immediately upon or shortly after their appointment. News of the pre-pack of Cote Brasserie came on the same day that the creditors of Pizza Hut voted to approve a company voluntary arrangement (CVA) which involved the closure of 29 of its 244 sites with the loss of up to 450 jobs, but 5,000 will be saved. Reports say that the CVA was a last resort to reduce annual rent obligations which Pizza Hut could no longer afford in light of rising costs and the Covid-19 pandemic. CVAs have been very much in the headlines in recent months due to a significant number of well-known High Street chains using them, in the main, to reduce rent obligations as a way of saving costs. Whilst this is one use of the process, CVAs can present a creative opportunity to restructure a company’s operations to the satisfaction of all parties and whilst, as you would expect, the high profile names... --- ### BRI Golf Day – The Finals - Published: 2020-09-24 - Modified: 2023-09-07 - URL: https://www.briuk.co.uk/bri-golf-day-the-finals/ - Categories: BRI, Local News 24 September 2020: Yesterday we hosted a special event for the top 3 individual scorers from each of our regional golf days held in Northampton, Coventry and Milton Keynes, to see who would be crowned “BRI Golf Champion 2020”. Also, the top 3 individual scorers were teamed together to battle it out against the other regions and ensured we had a Northampton vs Coventry vs Milton Keynes style match on the golf course. The finals were held at Staverton Estate Golf Club on a cold and wet Wednesday afternoon and was a true test of everyone’s golfing ability. Congratulations to the overall individual winner - Liz Newell of MacIntyre Hudson, who is crowned “BRI Golf Champion 2020”. Well done to 2nd and 3rd place, Christopher Colclough and Paul Currie, respectively. Congratulations to the team winners - Milton Keynes – Liz Newell, Christopher Colclough, Stephen Wilson & Tom Guthrie – who all now have bragging rights across the regions. A big thank you to all that attended yesterday and the regional days – everyone played their part in remaining safe and sensible in what is a very strange time and we hope you all enjoyed the days as much as we did. --- ### Budgeting Time for the Budget - Published: 2020-09-17 - Modified: 2023-09-07 - URL: https://www.briuk.co.uk/budgeting-time-for-the-budget/ - Categories: Economy, News 17 September 2020: Due to the unprecedented events of 2020 the Autumn budget may arrive later than usual, and according to some recent reports, may in fact become a Spring budget. However, as many of us follow the idiom ‘hope for the best prepare for the worst’ no doubt a great amount of planning is currently being undertaken in light of anticipated tax grabs in the budget. Due to the sudden and unexpected expenditure of funds lavished on businesses and employees throughout the Covid-19 pandemic, it is now widely anticipated that measures will be taken in the next budget in order to recoup funds and swell the Government’s dwindling coffers. A notable potential area of tax review included in many reports is capital gains tax rates, with suggestion that changes are very much on the Chancellor’s radar. Coupled with the recent amendments to entrepreneur’s relief, my apologies, business asset disposal relief, there is the potential for some business owners’ long term planning to be significantly impacted by recent tax changes. In the last few weeks staff members of BRI have encountered a few occasions where a socially distanced lawyer has shared a tale of assisting a client with a business or asset sale that they have ensured will be completed as soon as possible in order to finalise matters prior to any potential budgetary tax amendments. However, on these occasions the lawyers in question had not yet considered the practicalities of the business owners also then extracting those funds from... --- ### Recovery… - Published: 2020-08-26 - Modified: 2024-03-20 - URL: https://www.briuk.co.uk/recovery/ - Categories: Insolvency, News, Recovery, Success Stories 26 August 2020: Whilst good news was recently announced from Virgin Atlantic, many small businesses also face challenges whilst they try to survive the recession. Virgin Atlantic have won the backing of their creditors for a £1. 2bn rescue plan, which will secure their future for at least 18 months and save 6,500 jobs. Small business owners who are looking for finance should be cautious, as we have seen many individuals losing personal properties and assets due to personal guarantees given for company borrowing. In comparison to those in ecommerce or healthcare, businesses in the hospitality, retail, leisure and travel sectors will find it tricky to secure finance and grow. Some of the retail sector have been fortunate enough to see sales rise to the same as pre-lockdown. Others with little or no online presence fear high streets becoming ghost towns, which will wipe them out for good. Many employees have and will be prepared to take pay cuts to ensure they still have an income to pay the bills. Where employees have been laid off or businesses have failed, previous economic crises have created a new generation of entrepreneurs. If you or your clients are facing financial difficulties during these turbulent times, please contact one of our management team to discuss the options of recovery and survival. --- ### What happens to a limited company when the sole shareholder/director dies? - Published: 2018-08-23 - Modified: 2024-01-26 - URL: https://www.briuk.co.uk/what-happens-to-a-limited-company-when-the-sole-shareholder-director-dies/ - Categories: Creditors, Directors, Insolvency, Recovery 23 August 2018: The limited company is a legal entity and the shares will vest in the deceased’s estate. The executor of the deceased’s estate will be in a position to make decisions to realise the value of the shares. In the case of an owner/managed business, it can be difficult to find out the value of the business where no one else has access to the management accounts of the company. In some cases, the business could have a negative impact on the deceased’s estate and the entitlement to the beneficiaries. For example, if the director had given personal guarantees to business creditors. If the business cannot satisfy the debts in full, the creditors have a right to claim against the deceased’s personal assets. BRI can assist an executor to identify the realisable value of the shares / business assets. In cases where the business is insolvent but does have assets to satisfy some of the debts we can assist the executor in making the right decisions for employees, creditors and the beneficiaries of the deceased’s estate. Please contact any of our BRI management team for sound practical advice. --- ### Can your landlord take your assets in lieu of rent? > If you are a tenant with unpaid rents or a landlord with uncollected rents and wish to talk about your options, please do get in touch. - Published: 2015-08-27 - Modified: 2025-05-29 - URL: https://www.briuk.co.uk/can-your-landlord-take-your-assets-in-lieu-of-rent/ - Categories: Creditors, Directors, Insolvency, Liquidation Many will recall the days of old where landlords were able to waltz into commercial premises and secure any overdue debt by distraining over assets for unpaid rents. This often left the directors or owners of the business in a quandary. But in this quandary you had choices: Negotiate and/or rob Peter to pay Paul and the distraint might go away. Don’t pay the landlord and risk goods being lawfully removed and sold at a fraction of the cost at auction. Speak with an insolvency practitioner and enter a formal insolvency process (such as liquidation) in a bid to beat the landlord to the goods. None of these choices solved the problem and none were choices that any tenant wanted to be faced with or make. It was recognised that the system was unfairly balanced in the landlord’s favour. No other creditor had the power of a landlord to distrain and enforce seizure (save for the Crown) and things had to change. In addition, from an insolvency practitioner’s perspective, how could we help to rescue a manufacturing business that had no presses or lathes and could not manufacture? Put simply, we couldn’t. If the goods were seized, there was often no business to save, all employees were made redundant and any goodwill in the business dissipated within hours or days. Accordingly, the law eventually caught up and the balance of creditors’ rights was addressed. In April 2014, the Commercial Rent Arrears Recovery (“CRAR”) legislation was introduced. CRAR has been with... --- ### Clearance from HMRC in Solvent Liquidations > It's too risky to close our file in a matter whereby we're the liquidators without obtaining clearance from HMRC in solvent liquidations - Published: 2015-06-29 - Modified: 2024-04-16 - URL: https://www.briuk.co.uk/clearance-from-hmrc-in-solvent-liquidations/ - Categories: Directors, HMRC, Liquidation, Members Voluntary Liquidation, News HM Revenue & Customs ("HMRC") recently underwent a significant restructure so that all tax matters relating to insolvencies are handled in offices dependent upon the case type rather than the type of tax involved. For example, all bankruptcy matters are now being dealt with by the Insolvency Claims Handling Unit in Newcastle-upon-Tyne and all company administrations are being handled by the Enforcement & Insolvency Service out of Worthing. This is having an impact on gaining the required clearance from HMRC in solvent liquidations. This restructure is having a particular impact on solvent liquidations or members' voluntary liquidations ("MVLs") to give them their proper title. We understand that this is as a result of there being no proper handover plan or training provisions being put in place prior to the restructure. As a result, HMRC staff are under pressure and are having to more or less be "trained as they go" and this is resulting in delays in our dealings with them. We understand that HMRC are no longer giving out specific names or direct line telephone numbers to staff, meaning that we are having to be routed through the main switchboard, which makes chasing by telephone difficult. The Importance of Getting Clearance from HMRC in Solvent Liquidations As an MVL is a tax-efficient procedure to enable shareholders to extract their investment in a limited company, it is simply too risky to look to close our file in a matter whereby we are the appointed liquidators without obtaining the proper clearance... --- ---