Types of liquidation
Coronavirus Business Assistance: How Can I Protect my Company?
Corona Virus and Businesses
On the off chance that you’re seeking out for Coronavirus trade assistance, you’re not alone – and we’re here to assist you.
The new COVID-19 coronavirus and resulting lockdowns have impacted heavily on the day-to-day life of individuals and families across the globe.
Concerningly, the situation is also disturbing the well-being of companies. Almost overnight, companies of all sizes and in all sectors have run into severe difficulties.
More than half a million British companies are in a state of financial distress, according to the corporate insolvency experts.
According to the Office for National Statistics, there were 17,196 instances of corporate insolvency over the course of 2019 but that figure looks likely to be very easily surpassed in 2020.
We can help you
From the beginning of the flare-up, our team has been immersed with inquiries from companies that had been productive and developing – until the coronavirus widespread.
We know that a lot of business owners and directors are concerned about this situation, that’s why we prepared some guidance and advice for them.
What do I have to do as a Director?
The first step is to know what your legal obligations are. It is vital that all your statutory duties are carried out in a proper manner.
If you continue trading while knowing that your debts will not be paid you can be found guilty of wrongful trading. This means you might be disqualified from being a director again.
It is essential you asses correctly your company’s situation and take the proper precautions.
The sooner your company acts, the better. Fortunately, there are many options available to you. We’ve outlined them below.
Government initiatives providing coronavirus business support
The UK government has perceived that the nation cannot manage to permit companies to go beneath as a result of coronavirus.
The government has published guidance for businesses, employers and employees, in providing advice about the novel coronavirus, COVID-19.
These can be accessed from Monday 23 March 2020.
This guidance also provides details of support available to businesses including:
- a Coronavirus Job Retention Scheme
- deferring VAT and Income Tax payments
- statutory sick pay relief package for small and medium-sized enterprises (SMEs)
- a 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
- small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
- a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
- the HMRC Time To Pay Scheme to help with tax.
Options for company rescue
In the event that you’re stressed that government activities are not strong enough or sufficient for your circumstance, or your company is battling to outlive this pandemic, there are other choices that we at Insolvency Help can provide.The fundamental part of an Insolvency Professional is to assist in halting things from getting worse, through rebuilding, financial planning and/or the deliberate winding down of a company.In insolvency, there is never a one-size-fits-all approach. Our team at Insolvency Help is available to assist you through your difficult times by suggesting one of following approaches:
When a struggling business appears to be viable with the prospect of becoming profitable again, and the directors are willing to continue, a company voluntary arrangement (CVA) may be an ideal way to protect against legal actions taken by creditors.
Company administration is a formal procedure in which an insolvency practitioner is appointed to act as the administrator of an insolvent company with the goal of bringing about a recovery.
A Creditors Voluntary liquidation is a legal process that “winds up” an insolvent company by selling assets and property to repay debts.
By the end of the voluntary liquidation process, the company will have stopped trading and will cease to exist.
We’re all in this together
It’s critical to keep in mind we’re all in this together – the key is to be responsive and proactive, and bolster each other wherever we can.
Worrying is natural in these unprecedented times, but the business support is already available and plenty to help minimize any damage to your company.
If you’d like further guidance or advice, please don’t hesitate to contact us using the contact form on our contact page, by email at info@smallbusinessrescue.co.uk or by calling us on 020 3883 5622 / 020 3642 1710. We will help you walk through the “minefield” and make the best of the current situation.