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Business and company solutions

Whatever your business and no matter its financial challenges, BEACON can help. Business rescue and recovery is a stock phrase with many firms, but at BEACON we work harder to turnaround your business wherever possible.

Is Your Business Struggling?

Liquidation need not be the only outcome or option available to you. Your business may benefit from a number of different rescue or turnaround options. At BEACON we would be happy to discuss these with you and help find the right solution.

If your company is in financial difficulty or facing an impending problem, please feel free to contact us and we will work together to ensure the best outcome for all concerned.

Making that first call is often the hardest thing but it will often be the most crucial. That is why we offer a free no-obligation consultation. At BEACON we are here to help you, not hassle you.

Call Matt Fox on 02380 651441 or email mfox@beaconllp.com

Business and Company Insolvency Options

Company Voluntary Arrangement (CVA)

A less well-known procedure, a CVA allows Directors to retain control of a business whilst allowing restructuring or a change of approach. A CVA is a procedure whereby a company can be ‘saved’ where it has suffered financial difficulties, but still has a viable core business, which may survive if the burden of debt is released.

Comprising a formal and legally binding negotiated settlement between the company and its creditors, a CVA may allow historic debt to be settled in full, or in part, from future profits. It makes an ideal solution whereby the company can escape the burden of the past to excel in the future.

How does a CVA work?
The company agrees to repay some or all of its debts from future profits or asset sales over an agreed period (usually 3 to 5 years).

Where a CVA successfully completes, it can allow for the balance of debt to be written off where is cannot reasonably be paid.

CVA’s are often used as a procedure to pay any debts, such as tax owed to HM Revenue & Customs via a formal legally binding arrangement.

How long does a CVA last?
This will depend upon the company’s financial position, but most standard CVA’s last for between 3 and 5 years.

When will a CVA end?
Generally, when all sums due under the agreed CVA have been paid and the company has successfully complied with its obligations due under the Arrangement.

If you would like to discuss the possibility of a CVA for your company, call BEACON on 02380 651441 or email mfox@beaconllp.com. All initial consultations at Beacon are free of charge!

Administrations (AO)

Administration is a procedure available to a company that is insolvent or likely to become insolvent which places the company under the control of an Insolvency Practitioner and the protection of the Court.

If you have a viable business that is failing, or likely to fail, because of the burden of debt, an onerous lease or bad debtor, an Administrator can trade the company and often rescue a business, thus saving employee’ jobs and preserving goodwill.

Quite often a deal can be agreed in advance to make sure the inherent added value of the business is not lost, trading relationships not interrupted and service to customers is maintained.

The appointment of an Administrator may occur in a number of ways, by a number of people, depending on the circumstances and what is best for everyone involved.

If your company is subject to creditor pressure, the impact of a bad debt, if you are concerned about cash flow or are considering restructuring and feel there is a viable business worth saving, contact Matt Fox on 02380 651441 or via email mfox@beaconllp.com to discuss whether an Administration would be right for your company.

Liquidation

When considering or commencing any liquidation at Beacon we will provide close support to you as directors, and or shareholders of the company.

We will provide a dedicated point of contact to you and your company and our team has a wide range of experience and knowledge within different sectors.

You want to be confident that Liquidation is the best solution for your company.

At Beacon we will help guide you through the liquidation process.

Creditors Voluntary Liquidation (CVL)

Do you feel that Liquidation may be the only way?

Is your company struggling to pay its debts as and when they fall due?

A CVL is a procedure whereby the director(s) and shareholder(s) of a company reach the decision to place the company into Liquidation in order to facilitate an orderly wind up of the company’s affairs. This may occur when the director’s believe that the company is no longer viable or is unable to pay its debts in a timely manner.

A delay in reaching this decision can cause directors to become personally liable for company debts. It is therefore essential that professional advice is sought as soon as is possible.

Whilst a CVL is director led, you will still need the assistance and guidance of a fully Licensed Insolvency Practitioner to place your company into CVL; and at BEACON we work with you through the process.

Contact Matt Fox on 02380 651441 or email mfox@beaconllp.com for free independent advice tailored to suit your company. All initial consultations at Beacon are free of charge!

Compulsory Liquidation (CWU)

Is your company is receiving County Court Judgments (CCJ’s)? Or statutory demands? If yes, then action is required!

If you fail to pay a debt when it is due, a creditor can initiate a petition to the Court for a winding up order against the company – via the compulsory liquidation process.

A CWU is a Court driven process to wind up the company – but the effect on your business could be devastating!

It is important that you seek advice early, to ensure the more options that may be available to you. Contact us on 02380 651441 for independent professional advice. All initial consultations at Beacon are free of charge!

Dissolution/Striking Off

A company can apply to the Registrar of Companies for dissolution, whereby the company is struck off the Register at Companies House.

BUT – this is not without risk!

There are rules and procedures, which must be complied with to ensure Dissolution is done correctly, and that you, as a director or shareholder, are not committing an offence.

Once a company is Dissolved, any remaining company property automatically belongs to the Crown!

Dissolution does not absolve directors or shareholders from any personal liability they may have.

At Beacon we can help you avoid the risks. If you wish to explore this option, please contact us on 02380 651441 or email Cheryl@beaconllp.com.

Solvent Solutions (MVL)

MEMBERS VOLUNTARY LIQUIDATION (MVL)

  • Are you considering retirement?
  • Do you want to restructure your solvent business?
  • Do you require a tax-efficient way of distributing accumulated profits to shareholders?

From 1st March 2012, the Extra-Statutory Concession which allowed shareholders to realise assets informally, and pay Capital Gains Tax ended. The new rules meant that informal distributions totaling over £25,000 per Company, would be subject to Income Tax.

It is only via an MVL that total distributions from solvent companies over £25,000 can be subject to Capital Gains Tax.

BEACON have developed a streamlined process for assisting Director/Shareholders wishing to extract dividends from solvent companies in the most tax efficient way possible and normally allow a same day payment of funds to Shareholders as a Capital Distribution.

The process is straightforward and easy for all involved:

  • BEACON will prepare and send all documentation via email and accept scanned, executed documents in return
  • The Declaration of Solvency (an asset / liability statement of the company) is sworn in front of any local solicitor or commissioner for oaths (normally charging approx. £10) and then returned, either via email or post to us.
  • Upon receipt of these documents, the MVL will usually commence the same day, with funds available for payment to Shareholders on that same day, as a Capital Distribution
  • Any VAT paid on our fee and disbursements can usually be reclaimed and paid out to shareholders (if the Company was ever VAT registered).
  • No hidden costs

BEACON charge a fixed fee, including disbursements, from £2,500 plus VAT.

CALL US

Call your local BEACON office today to arrange your free consultation.