One thing that is surprising many Business Advisors is how well their clients are bearing up, considering the mess the country is in. This position is reflected in the figures from the Insolvency Service which saw a fall in the number of people and companies going into insolvency in the final three months of 2010.
One factor to bear in mind though is that a lot of companies are struggling but, thanks to the HMRC time-to-pay-scheme, they’ve been able to delay paying their tax bills. Once HMRC hardens its stance, as it surely will, these companies are likely to experience difficulties.
Another interesting recent report states that the Insolvency Service is disqualifying directors of failed companies for longer periods. Last year, the number of disqualification orders of five or more years increased by over 10%. This should serve as a warning to any directors who do not think that they need to take possible disqualification seriously.
Keep an eye on…
A sector worth keeping an eye on is trades-people like Plumbers and Gas Fitters. They are the latest group being targeted by HMRC in a clampdown into trades-people it believes could be under-declaring their income. This, unwelcome focus, could cause difficulties for some of those businesses.
Companies in any of these sectors may need some extra support.
If any Turnaround or Insolvency advice is needed, give us a call to arrange a (free) meeting to help you.