Earlier this month, our Business Recovery team held their Autumn Breakfast Business Update, giving their insight and opinion on the technical and commercial changes from the world of insolvency.
Ben Cowgill compared two similar cases where at the date of liquidation the directors had overdrawn loan accounts outstanding, explaining the varying approach taken by The Insolvency Service and the tough stance now being taken by HMRC when repayment is not made in full.
The examples given highlighted what a hot topic the treatment of overdrawn directors’ loan accounts are nowadays with HMRC and The Insolvency Service giving the issue such centre stage. What is worrying is that we are still seeing many Directors who have previously taken advice yet are completely unaware of the issues that arise when their loan accounts will not be repaid in full. (If you’re unaware of these, Jason Elliott’s blog explains it here).
Craig Johns, Partner at Cowgill Holloway Business Recovery then approached the subject of how to close a business down in the most tax-efficient manner, to ensure the value in a business is extracted, explaining the alternative options to simply striking off a business.
Using an example, and comparing the two routes, Craig compared and contrasted – detailing when a Members’ Voluntary Liquidation can be beneficial and when a striking off is more appropriate.
To end the event, recently appointed Business Funding Director, Benjamin Day explained how the funding market had evolved over the past few years, and why the need for proper advice when it comes to Business Funding is essential. Benjamin highlighted the numerous alternative funding products appearing daily, explaining why in today’s market a broker that works for your clients is a ‘must-have’ rather than a ‘nice-to-have’. He also explained several key tips when it comes to funding and what to consider when starting the process.
Thanks to everyone who came along and participated in our post-event Q&A session for the final Breakfast Business Update of 2017, we will continue to hold the events throughout 2018, (ensuring we don’t disturb you too much during January!).
To ensure you’re invited to our next Breakfast Business Update, simply fill in your details below, and we’ll make sure you don’t miss out on an invitation to our “Breakfast Business Updates for accountants.”