Directors

Mental Health and Financial Difficulty: Breaking the Cycle for #MentalHealthAwarenessWeek

As we approach Mental Health Awareness Week, it's crucial to recognise the often-overlooked link between mental health and financial difficulty. They can create a vicious cycle, where one exacerbates the other. Here, we'll explore this connection and offer strategies to break free. The Financial Rollercoaster's Impact on Mental Wellbeing Financial worries are a significant stressor, impacting our emotional and psychological well-being. Here's how money troubles can affect mental health: Anxiety and Depression: Chronic financial stress can trigger anxiety and depression. The constant worry about bills, debt, and making ends meet can lead to feelings of hopelessness and helplessness. Sleep Disturbances: [...]

2024-05-20T12:14:23+00:00May 10th, 2024|Directors, Updates|

Struggling with Your Commercial Lease? An Insolvency Practitioner’s Guide to Early Termination

Financial difficulties and a burdensome commercial lease can feel like a double blow. But before you resign yourself to the entire term, there are options! Here, we at DMC Recovery explore ways to potentially exit your lease early and free up vital resources for your business. Review the Lease for Break Clauses: Commercial leases generally include "break clauses" that allow either party to terminate the agreement at specific points during the term. Carefully review your lease for these clauses and their associated conditions. Early termination might involve a fee, but it could be significantly less than the remaining rent.  Negotiate [...]

2024-04-30T06:59:16+00:00April 30th, 2024|Directors, Updates|

Don’t Wait Until It’s Too Late: When to Consult an Insolvency Practitioner

We understand. Insolvency practitioners often get called in when things seem dire, like the financial Grim Reaper hovering at the door. But here's the secret most business owners don't realise: we're not just about closures and liquidation. In fact, our expertise can be your lifeline, helping you restructure, explore rescue options, and navigate a path back to stability. So, how do you know when it's time to pick up the phone? Here are some red flags that shouldn't be ignored: Mounting Debts: Are your bills piling up faster than you can pay them? Are creditors chasing you down? This is [...]

2024-04-30T06:50:40+00:00April 24th, 2024|Advice, Directors|

Bounce Back Loans & Insolvency Scenarios

The Bounce Back Loan Scheme was introduced on May 4, 2020, allowing businesses to borrow between £2,000 and £50,000, with 1,531,095 loans granted totalling £46.53 billion. These loans came with attractive features such as a low interest rate of 2.5%, a 12-month interest-free period, and a repayment term of 6 years. The intended use of these funds was primarily for working capital requirements, including staff wages, rent, utilities, creditors' payments, and other essential business expenses. The government provided full guarantees on these loans, ensuring repayment to lenders even in the event of insolvency, as long as the funds were utilised [...]

2024-03-25T22:10:50+00:00March 25th, 2024|Directors, Updates|

Directors’ Loan Accounts and Dividends: Everything You Need To Know

At DMC Recovery, we frequently handle cases involving directors' loan accounts and unlawful dividends. Let's delve into what these claims entail and how they're addressed in practice. Directors’ Responsibilities Directors are bound by duties outlined in the Companies Act 2006. They must act in good faith and prioritise the company's success. In cases of solvency, their duty lies with shareholders; in insolvency, creditors take precedence. As fiduciaries, directors manage the company's funds, akin to trustees, with obligations such as good faith and avoiding conflicts of interest. Directors’ Loan Accounts Overdrawn directors' loan accounts represent debts owed by directors to the [...]

2024-03-20T11:40:27+00:00March 20th, 2024|Advice, Directors|

I have used my bounce back loan to pay my mortgage and household bills, what next?

If your small business has recently suffered from financial losses arising as a result of the COVID-19 pandemic, you, as company director or sole trader, may have taken advantage of the government-supported bounce back loan scheme. This may have helped you carry your business through this difficult period in order to avoid liquidation, but what if you’ve used it for other purposes?   Bounce back loans offer struggling businesses up to £50,000 depending on the business' usual annual turnover, and allow a six-to-ten-year repayment term. The scheme was launched on 4th May 2020 and eligible business owners have until 31st [...]

2021-01-26T07:31:05+00:00January 26th, 2021|Directors|

What is an Insolvency Practitioner?

Insolvency is a highly regulated professional service.  If a firm offers “insolvency services” there must be a licensed Insolvency Practitioner (IP) within the business.   Insolvency practitioners have often qualified as accountants before they specialise in insolvency.  It is important that they have a good understanding of business finance. There are many firms which claim to offer insolvency services; however, some will simply charge you a fee to refer you to another company that does have a licensed IP.  If you feel that you may need the help of an IP it is worth making sure that you are speaking to [...]

2020-07-20T20:11:48+00:00July 20th, 2020|Directors|

What are the implications for changes in IR35?

HMRC introduced IR35 or the ‘off-payroll working rules’ in 2000 to target ‘disguised employment’ and tax avoidance. It is aimed at companies who hire freelancers or contractors to undertake work but who are in effect working as employees. The advantage for the employer is that they don’t have to pay employers’ National lnsurance contributions or give the contractor the benefits they would have to give to an employee. The benefit for the contractor is that by setting up a limited company, they can take avoid National Insurance and pay lower rates of tax. IR35, however, is designed to assess whether [...]

2020-01-23T13:10:41+00:00January 17th, 2020|Directors|
Go to Top