Insolvency fees rise but the number of insolvencies drop

Hart Shaw Business Recovery is reminding SMEs that revised fees for bankruptcies and company insolvencies will come into force on 16 November 2015.

Fees and charges are reviewed annually and the revised fee structure ensures that the cost of insolvency processes is paid for by those who use them.

The company winding up deposit – which needs to be paid to the Department of Enterprise, Trade and Investment – is set to rise by eight per cent to £1,350, whilst the company winding up administration fee will climb by five per cent to £2,520.

Christopher Brown, Business Recovery & Insolvency Partner, at Hart Shaw, a founder member firm of the UK200 Group said: “These changes will be subject to Parliamentary scrutiny, but the rise in fees is disappointing for SMEs. However, it is promising to learn that according to the latest figures from the Insolvency Service, there has been a fall in the number of company insolvencies in England and Wales over the last quarter.

“Some 3,539 companies entered insolvency in Q3 2015; a drop of more than ten per cent compared to Q3 2014. The decrease in compulsory liquidations mark a drop to the lowest level since 1989. In fact, the estimated liquidation rate in the 12 months ending Q3 2015 was less than half of one per cent of active companies, which is the lowest level since comparable records began in 1984.

“However, if you’re an SME owner that is worried about bankruptcy, insolvency and the associated fees, talk to an expert.”

Hart Shaw Business Recovery has a team of professionals that can assist in this area. To find out more, please contact Christopher Brown on 0114 251 8850 or chris.brown@hartshaw.co.uk.

 

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Do not bury your head in the sand

Sheffield based accountants Hart Shaw is urging business not to be complacent if they receive accelerated payment notices (APNs), after new figures reveal that the government has collected more than £1 billion through their use.

HM Revenue & Customs (HMRC) recently announced that it has collected more than a billion pound using APNs, since it was granted the new powers in 2014/15.

Under the accelerated payment rules, HMRC is able to make taxpayers pay disputed tax in advance, rather than waiting for the outcome of a tax tribunal ruling.

Once an APN is received taxpayers have 90 days to pay the outstanding tax, whether they feel it is due or not or face additional penalties. If the taxpayer wins the case the money is reimbursed to them with interest.

During the first year HMRC issued more than 10,000 notices to businesses or individuals who had used a disclosable scheme under the Disclosure of Tax Avoidance Schemes (DOTAS) rules.

Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw said: ““Receiving an APN should not be taken lightly, as it can have a serious effect on the liquidity and reputation of you and your business.

“The fact that HMRC have collected more than £1 billion, shows that they are serious when it comes to potential tax avoidance.”

Earlier this year, it was revealed in HMRC’s annual report on tax avoidance, that of the £596m received from APNs during 2014/15, some £28m was refunded after legal challenges.

“While many of those targeted by these new powers may have legitimately avoided paying tax, there will be some individuals and business who have been unfairly targeted and this is evident in the number of refunds already issued by HMRC,” added Christopher.  “Seeking professional advice sooner rather than later is critical.”

For more information please contact Christopher Brown on 0114 251 8850 or chris.brown@hartshaw.co.uk.

 

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New website for Hart Shaw Business Recovery & Insolvency

Hart Shaw Business Recovery & Insolvency has developed a new website, embracing new technological methods for better usability.

The new mobile friendly website has better functionality for users accessing the site via different devices.

It is up to date with practical solutions and video content to address businesses and individuals who may be experiencing financial difficulty. In addition to this there is a section on how other professional advisers can access the range of services on offer from Hart Shaw to assist their clients who may be experiencing problems.

The new Hart Shaw Business Recovery & Insolvency website

Brendan Hall, Marketing Co-ordinator at Hart Shaw comments: “The new website has been designed specifically to increase the user experience, making it easier to navigate and find information depending on the specific requirements of the visitor.

“We offer a range of services to businesses, individuals and professional advisers and have broken down these services to enable our visitors to find the information they require quickly and easily.

“Our website can be read easily on mobile phones and tablets, as well as PCs and Laptops to make it more accessible in the office, at home or on the move.”

 

View the new Hart Shaw Business Recovery & Insolvency website here: www.hartshaw-bri.co.uk.

Is your business experiencing financial difficulty?

Do you need to know what options are available to your business in troubling times?

Watch our service insight to gain more understanding of the options that can be available and how you can start taking the right steps to safeguard the long term future of your business.

The team at Hart Shaw Business Recovery & Insolvency have helped to turn around and keep trading over 60% of the troubled businesses that have sought help and advice from us.

Watch our ‘Companies in financial difficulty’ video here.

 

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No business is immune from failure

The recent insolvency of the Rotherham based MTL Group is a timely reminder that no company, however large and high profile, is immune from failure. Administrators were appointed to MTL Group on 2 February 2015 with the immediate loss of 157 jobs and leaving creditors owed circa £10m.

The immediate effect of any insolvency is that creditors suddenly have a bad debt to deal with, and the larger the debt, the more likely that there will be a domino effect, causing otherwise solvent companies to have cash flow problems which could ultimately lead to failure. When the initial insolvency involves such a high profile company as MTL Group the risk of the domino effect only increases.

We are currently helping one of the creditors of MTL who has a large bad debt. Fortunately this company is financially sound but even so, the disruption to its immediate cash flow caused by MTL is such that we are currently negotiating with HM Revenue & Customs a time to pay arrangement for the current VAT Quarter. This will enable the Company to avoid penalties and make nominal payments until, over the next six months, it can claim VAT Bad Debt relief on the MTL debt and so satisfy the current VAT quarter.

Other Companies in less financial health may need to negotiate with their creditors generally and this is where an Insolvency Practitioner can provide valuable help. Of course this is dealing with the effects of a bad debt after it has happened. But what practical things can a Company do to lessen the effects of a bad debt before it happens?

The first thing is to know your customer, assess their credit worthiness and set a credit limit which reflects the commercial risk you are prepared to take, because were your customer to fail that is how much you stand to lose.  Once set, stick to it. We often see cases where although a credit limit was in place, the company has ignored it and gone on supplying the customer which has ultimately failed. If possible incorporate a personal guarantee into your credit application form, it may not always be possible, especially with larger customers, but it is worth trying. Finally consider credit insurance to protect against non-payment should a customer fail. The benefits of credit insurance are not only that the debt being insured would be paid, but that you will have access to improved credit intelligence on your customers.

If your require any assistance in dealing with your creditors or require further information about credit insurance please contact Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw on T: 0114 251 8850 or email: chris.brown@hartshaw.co.uk.

Christopher Brown, Business Recovery & Insolvency Partner at Hart Shaw

 

 

 

 

 

 

 

 

 

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Attend Hart Shaw’s forthcoming events

Hart Shaw Business Recovery & Insolvency wine tasting event

Accountants, solicitors, business finance providers and business coaches in the East Midlands area are being invited to join Hart Shaw’s Business Recovery & Insolvency department for an evening of fine wine tasting at Mansfield Manor Hotel on July 16^th.

The aim of the evening is to develop and foster relationships between Hart Shaw and its current referrers and potential referrers that may know of businesses which require recovery & insolvency advice and/or complex tax work.

Hart Shaw, which is based in Sheffield, often works with other accountants to find the best solutions for their clients as Brendan Hall from Hart Shaw explains: “When working with other business professionals that don’t have our expertise in recovery and insolvency, our aim is always to try and turn their client’s business around and keep it trading. The wine tasting event is an opportunity for us to say thank you to existing referrers and to meet new people that we may be able to work with in future. Those attending will get the chance to meet our Insolvency Practitioners and Tax Specialists, network with other professionals from neighbouring areas and learn more about the specialist services we can offer – which can often be the difference in a referrer losing or keeping a client.”

Mansfield Manor Hotel is located in Carr Bank Park in Mansfield.

The evening starts with a 6.30pm registration and networking followed by the wine tasting session which will be hosted by specialist wine importer Emilios Polimos, owner of Emilios Greek Restaurant and a wine importer with Pegasus Wines

To book a place for the free to attend event, please contact Sarah Anyan on 07876 765592 or email sarah.anyan@hartshaw.co.uk

 

Hart Shaw Business Recovery & Insolvency

 

New Financial Year brings new Partner for Hart Shaw

Hart Shaw Chartered Accountants & Business Advisers is delighted to announce Emma Legdon as a new Partner within the Sheffield based firm.

Managing Partner Paul Dawson welcoming new Business Recovery & Insolvency Partner, Emma Legdon

Emma’s rise to the top completes what is a great success story since joining Hart Shaw in a temporary administrative role in 1993.

Working her way up the Managerial ladder, Emma qualified as an Insolvency Practitioner in 2011 and obtained her license in 2012 before being made a Partner of the firm on 1^st April 2013.

Emma comments: “I am very proud to have been named a Partner in a firm with the stature and history of Hart Shaw.

“Having been with the firm for all of my working life it is a great personal achievement and I feel very honoured that the current Partner group think enough of me to invite me to join them, which I have duly accepted.”

Managing Partner, Paul Dawson comments: “The appointment of Emma Legdon as a partner on 1^st of April shows that there is no bar on anybody reaching the top. Emma joined us as an office junior 20 years ago and has worked hard to get to where she is today. Well done to her, she is a role model for everybody within the firm.”

Emma will be leading the Business Recovery & Insolvency department at Hart Shaw, along with fellow Insolvency Partner Christopher Brown.

Emma comments on the current economic climate: “The past 12 months in the Recovery & Insolvency department have been tough compared to recent years, in part due to the uncertainty in the economy.

“If, as predicted, the economy slowly starts to improve this is when we could see businesses struggle with cash availability and not be able to fund their working capital requirements.”

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Hart Shaw Business Recovery & Insolvency

New Licensed Insolvency Practitioner for Hart Shaw

Hart Shaw Chartered Accountants & Business Advisers has added to its number of Licensed Insolvency Practitioners in its

Christopher Brown, Business Recovery & Insolvency Partner congratulating Hart Shaw’s new Licensed Insolvency Practitioner, Emma Legdon.

Business Recovery & Insolvency Department.

Emma Legdon, who has been with the firm since 1994, qualified as an Insolvency Practitioner in 2011 and has now obtained her license, joining Senior Partner Andrew Maybery and Business Recovery & Insolvency Partner Christopher Brown as licensed Insolvency Practitioners within the firm.

Emma comments: “I am delighted to have obtained my license to become the first female Insolvency Practitioner at Hart Shaw.

“With an increasing number of businesses and individuals experiencing financial difficulty in the region, having an extra Insolvency Practitioner at Hart Shaw means we are able to provide more help to people in their time of need.

“We encourage anyone who is experiencing financial distress, either personally or via the businesses that they own and run, to seek professional advice as early as possible as this will increase the options available to them.”

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Hart Shaw Business Recovery & Insolvency