Directors

Is your business sustainable after 6 April 2025? Are you addressing the issues head on or “hoping for the best”?

The recent increases in National Insurance (NI) contributions and the minimum wage in the UK have posed significant challenges for small businesses.  The rise in employer NI contributions from 13.8% to 15% and the lowering of the salary threshold for contributions have increased staff costs. Coupled with the minimum wage hike mean businesses face tighter profit margins. What can you do? Reduce Hiring and Hours: Many small businesses, especially in sectors like retail and hospitality, should consider reducing staff hours or delaying hiring plans to manage the financial strain.  Opening hours should also be considered.  When do you make your [...]

2025-04-16T23:19:41+00:00April 16th, 2025|Advice, Directors|

Director’s Loans: Borrowing from Your Business

There are two main types of Directors Loans; borrowing on your business (in debit) or lending your business money (in credit). This article will focus on the former; when a director takes money out of the business that is not for their salary, dividends, or as an expenses repayment. In theory, taking out a Directors Loan can be a handy solution to any short-term cashflow problems you may be having, but only if you know that you can pay them back in a timely manner, and with interest. It’s also important to note that there are tax implications for the [...]

2025-04-07T21:19:50+00:00March 20th, 2025|Advice, Directors|

Preparing to Close Your Business and Claim BADR

Are you thinking of winding down your business? You may be eligible for BADR. Business Asset Disposal Relief (BADR) was previously called Entrepreneurs’ Relief, and is intended to help you reduce the rate of tax paid on the disposal (sale) of ‘qualifying business assets’ for higher and additional rate taxpayers. BADR is applicable only to individuals and trustees, so disposals by companies will not qualify for relief. It is also only for qualifying disposals of business assets – not the disposal of investment or non-business assets. Since the Autumn budget last year, there have been some changes to CGT and [...]

2025-03-10T23:32:13+00:00March 5th, 2025|Directors|

Understanding Misfeasance in Company Insolvency

When a business faces insolvency, those overseeing the company’s liquidation or administration hold the power to scrutinise the conduct of its directors. Misfeasance, a term denoting wrongdoing by a company officer, can lead to significant penalties if proven. Defining Misfeasance in Insolvency Under the Insolvency Act 1986, misfeasance is identified when an officer of a company, or someone involved in its promotion, formation, or management, has: Misapplied, retained, or become accountable for company money or property; or Committed any misfeasance or breached any fiduciary or other duty in relation to the company. This broad definition is designed to capture various [...]

2024-09-02T21:12:54+00:00September 4th, 2024|Directors, Updates|

Save Consultants Wound Up in the Public Interest

Save Consultants, a Manchester-based company that presented itself as an alternative solution to formal insolvency proceedings, was ordered to be wound up in the public interest on 2 July. This decision followed a thorough investigation by the Insolvency Service, which revealed that the firm was operating as an unlicensed insolvency practitioner. The Official Receiver has now been appointed as the liquidator of the company. The Services Provided by Save Consultants Save Consultants offered a brokerage service aimed at assisting directors in financial distress. The company claimed to help directors sell their interests in struggling companies, ostensibly allowing them to walk [...]

2024-08-21T21:45:50+00:00August 14th, 2024|Directors, Updates|

Restructuring Your Business for Recovery: A Strategic Approach

In the vibrant world of business, encountering financial difficulties can be daunting. At DMC Recovery, we understand the importance of seeking help early when your business is facing financial problems. Our primary aim is to enable companies to continue trading and increase the prospect of recovery through effective restructuring if necessary. Comprehensive Operational Assessment The first step in our approach is a thorough assessment of your entire operation. We will work closely with you to identify which parts of your business are profitable and which are not. This detailed analysis helps in pinpointing the segments that are draining resources and [...]

2024-07-25T06:33:25+00:00July 23rd, 2024|Advice, Directors|

Taking the Leap: Starting a Business and Avoiding Pitfalls

As insolvency practitioners, we see a lot of passion and drive from people starting businesses. It's an exciting time, but it's crucial to be aware of the challenges alongside the potential rewards. So, before you take the leap, here are some key considerations: Is there a market for your idea? Conduct thorough market research. Is there a gap in the market, or are you entering a crowded field? Who are your competitors, and what makes your offering unique? Do you have a solid business plan? This isn't just a document for lenders; it's your roadmap to success. It should outline [...]

2024-07-01T13:15:07+00:00June 30th, 2024|Advice, Directors, Updates|

Men’s Health Month: Taking Charge of Your Well-Being

June is Men's Health Month, a time to raise awareness about the specific challenges men face in staying healthy. While societal expectations are changing, men are still statistically less likely to prioritise preventive care and open up about health concerns. This silence can have serious consequences. Not only on your health but also on your business. Physical Health Concerns: Men are more prone to certain health issues, including heart disease, prostate cancer, and diabetes. Often, these conditions can be identified and managed early through regular checkups and exercise. However, a reluctance to visit the doctor can lead to delayed diagnoses [...]

2024-06-24T23:08:39+00:00June 20th, 2024|Directors, Updates|

Taxing Times: Managing Liabilities During Financial Distress

Financial distress is a stressful situation, and tax liabilities can add another layer of worry. However, at DMC Recovery, we understand there are steps you can take to manage your tax burden during difficult times. Here are some key tips to help you navigate tax liabilities in financial distress: Prioritise Transparency and Communication: Contact HMRC Early: Ignoring your tax liabilities will only make things worse. Contact HMRC as soon as possible and explain your financial situation. They are more likely to be understanding and work with you if you're upfront and proactive. Seek Professional Advice: Consulting an Insolvency Practitioner or [...]

2024-06-19T22:08:20+00:00June 14th, 2024|Advice, Directors|

Can I Still Be a Director After Company Insolvency?

Being a director of a company that becomes insolvent doesn't automatically disqualify you from future directorships. However, the consequences depend on how the Insolvency Service assess your actions during your role as a director. Here's what they will consider: Your Duty of Care: Did you act with competence and diligence? Minimising Losses: Did you take all reasonable steps to minimise losses for creditors? Compliance: Did you adhere to legal and regulatory requirements? If the Insolvency Service finds you breached your director's duties, they may restrict your ability to hold directorships for a period ranging from a few years to a [...]

2024-05-21T11:14:20+00:00May 27th, 2024|Directors, Updates|
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