0161 907 4044

Advice for Accountants – CVLs

Is one of your clients in financial difficulty?

When a client gets into difficulty, many questions will arise for their existing professional advisors, including:

  • Have the directors got a proper grasp of the situation?
  • Is it possible for the company to be rescued? If not, can the business be sorted out and where can they raise the necessary finance?
  • In addition, as their Accountants, how can you help make sure the directors act properly in accordance with the law AND protect their own interests?

Clarke Bell are specialist Insolvency Practitioners and our focus will mostly be on the company itself. However, we know from many years’ experience just how crucial it can be to work closely with the existing Accountants in three particular areas:

  • pre-insolvency advice
  • preparing for formal insolvency proceedings
  • post appointment accounts and tax enquiries.

 

Pre-insolvency Advice

Whether you want us to get directly involved in advising your clients or simply consult with us along the way, Clarke Bell have a great deal of experience in assessing the long-term viability of any business and the insolvency processes that might be used to stave off creditor attentions and aid survival of the clients’ business:

More importantly, we can help ensure that the right process is selected. For example, the directors of a company may think they want to do a CVA, but the costs of such proceedings are often very high (as are ADMs) whereas a well-managed Creditors’ Voluntary Liquidation (CVL) can be just as effective for saving certain types of business.

For your FREE advice call 0161 907 4044

 

Preparing for formal proceedings

Once it becomes apparent that formal proceedings are required, we usually find that a Creditors’ Voluntary Liquidation (CVL) offers the tidiest and most economic method of dealing with a Company.

Conscious of the way in which insolvency costs can spiral out of control, we have committed ourselves to working to fees based upon a combination of a fixed fee and a percentage of realisations, and we offer 2 different pricing structures for CVLs depending on the individual situation:

Basic CVLs  Complex CVLs

In some cases the cost of the Liquidation can be met from the value of the assets sold. We will advise you if this is possible in your client’s case.

One of the ways we are able to keep costs low is by asking the existing Accountants to handle particular elements of the work that are best done by those already familiar with the company’s finances. Funding for the Accountant’s fees for assistance with essential areas of work can all be provided for if the process is properly managed. Examples of often essential work include:

  • preparation of the Statement of Affairs
  • completion of the final payroll
  • initial advice on tax implications of the winding up
  • completion of management accounts.

 

Post Appointment accounts and tax enquiries

At Clarke Bell, we specialise entirely in insolvency work: we do no corporate tax or accounts preparation relating to the company’s pre-liquidation activities.

Accordingly, wherever there is a need for accounts work to be completed, payroll records to be verified, or tax computations prepared, we will instruct the former Accountants as naturally they will be best placed to do the work quickly and efficiently and for a reasonable fee.

Acting for the directors

Once it becomes clear that insolvent proceedings are required, it will be important for the directors to retain personal advisors for a number of possible purposes:

  • to assist them with formal duties such as the creation of a Statement of Affairs
  • to advise on their own tax affairs
  • to advise and assist in raising finance for a new business venture, perhaps including bidding for assets of the old company
  • to help deal with claims arising from loan accounts.

 

For more information

Insolvency

Insolvency

Thanks to the help I received from Clarke Bell, I am able to pay off my debts in a reasonable and realistic manner.

MVLs

MVLs

Our MVL was handled in a timely manner and I was kept informed of progress throughout.

Business Debt

Business Debt

Thank you for all your help with the liquidation matters. You were a joy to deal with.

Complete the form for your FREE expert advice

Your Name:

Your Email:

Phone Number:

Enquiry

captcha