Insolvency Key Terms: The Ultimate UK Glossary
Insolvency, Liquidation & Bankruptcy Terms: The Ultimate UK Glossary At Anderson Brookes, we understand that the insolvency, liquidation, and bankruptcy market can seem complicated. As a licensed insolvency practitioner with over 15 years of experience, our mission is to provide clarity, guidance, and support to individuals and business directors struggling with debt. We have created […]
What is High Court Enforcement?
What is high court enforcement? When a creditor is owed money by you, then those creditors can make a claim against you through the High Courts. This is called High Court Enforcement. If the amount owed is over £5000 then any claims made would be passed onto the High Courts for overseeing. Anything under £5000 […]
What is a Sole Trader?
What is a Sole Trader? A sole trader is an individual who operates a business on their own. They will still be classed as self-employed, however, they will also be the sole owner of the business they work for. When you are a sole trader there will be no legal distinction between yourself and your […]
What is a Phoenix Company?
What is a Phoenix Company? A phoenix company refers to a new company formed to continue the business of a failed or insolvent company. Typically, it has a similar name, directors, and operations. The term comes from the mythical phoenix bird, symbolising rebirth from its ashes. While legal when done ethically and transparently, phoenixing can […]
What is a Time To Pay Arrangement?
What is a Time to Pay Arrangement? As a business owner, you have tax liabilities you need to keep up with. However, if you find that you are struggling to pay your tax bill on time, you will need to get in touch with HMRC as soon as possible; do not delay. You may be […]
Can Directors Be Held Personally Liable in a CVL?
Can Directors Be Held Personally Liable in a CVL? Understanding Legal Consequences in Creditors’ Voluntary Liquidation Personal Liability In The Context Of CVL Can Directors Be Held Personally Liable in a CVL? The quick answer – yes! Directors, however, typically enjoy protection from personal liability in a Creditors’ Voluntary Liquidation (CVL). However, certain circumstances can expose […]
Creditors’ Voluntary Liquidation FAQs
Creditors Voluntary Liquidation FAQs: Essential Information for Business Owners What Is Creditors’ Voluntary Liquidation (CVL)? Creditors’ Voluntary Liquidation (CVL) is a formal process for closing an insolvent company. It’s initiated by the directors when they recognise the business can no longer pay its debts. In a CVL, at least 75% of shareholders must agree to […]
CVL vs Company Dissolution
CVL vs Company Dissolution: Key Factors to Consider When Winding Up Your Business What Is Creditors’ Voluntary Liquidation (CVL)? Creditors’ Voluntary Liquidation is a formal process for insolvent companies to wind up their affairs. It allows directors to take control of the liquidation process whilst fulfilling their duties to creditors. It is a legal procedure […]
Tax Implications of Striking Off a Company
This article will provide essential guidance for directors navigating the strike-off process, focusing on the critical tax considerations that must be addressed before proceeding. We’ll discuss the importance of settling all outstanding tax liabilities, closing bank accounts, and understanding the potential tax implications for shareholders, such as Capital Gains Tax or Income Tax, depending on […]
What is a Winding-Up Petition?
What Is a Winding-Up Petition? A winding-up petition (WUP) is a formal legal request made by creditors to liquidate a company that owes them money. Typically, creditors take this step as a last resort when other methods of debt recovery have failed. The petition is reviewed by the court, and if accepted, a winding-up order […]