Contractor Insolvency Solutions from Beacon

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Whatever your business and whatever its financial challenges, BEACON can help

At BEACON we understand the stresses caused by financial pressures and we endeavour to provide professional advice in a sympathetic and understanding manner. We deliver tailored solutions to company directors, business owners and individuals experiencing financial hardship and problems.

Liquidation need not be the only outcome or option available to you. Your business may benefit from a number of different rescue or turnaround options. At BEACON, we would be happy to discuss these with you. You can find out more about our services below or contact us via our website here. 

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Company Voluntary Arrangement (CVA)

A less well-known procedure, a CVA allows Directors to retain control of a business whilst allowing restructuring or a change of approach. A CVA is a procedure whereby a company can be ‘saved’ where it has suffered financial difficulties, but still has a viable business, which could survive if the burden of debt is released.

Comprising a formal and legally binding negotiated settlement between the company and its creditors, a CVA can allow historic debt to be settled in full, or in part, from future profits. It makes an ideal solution whereby the company can escape the burden of the past to excel in the future.

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Administrations (AO)

Administration is a procedure available to a company that is insolvent or likely to become insolvent which places the company under the control of an Insolvency Practitioner and the protection of the Court.

If you have a viable business that is failing, or likely to fail, because of the burden of debt, an onerous lease or bad debtor, an Administrator can trade the company and often rescue a business, thus saving employee’ jobs and preserving goodwill.

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Liquidation

When initiating any Liquidation at BEACON we provide close support to you as directors, and / or shareholders of the company.

You and your company will be provided with a dedicated contact point, and our team has a wide range of experience within different sectors.

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Creditors Voluntary Liquidation (CVL)

A Creditors Voluntary Liquidation (CVL) is a procedure whereby the director(s) and shareholder(s) of a company decide to place the company into Liquidation to facilitate an orderly wind up of the company’s affairs. This may occur when the company is unable to pay its debts in a timely manner, or the director’s believe that the company is no longer viable.

Delays can cause directors to become personally liable for company debts. It is therefore essential that professional advice is sought.

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Compulsory Liquidation (CWU)

If you fail to pay a debt when it is due, a creditor can initiate a petition to the Court for a winding up order against the company – via the compulsory liquidation process.

A CWU is a Court driven process to wind up the company – but the effect on your business could be devastating!

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Dissolution/Striking Off

A company can apply to the Registrar of Companies for dissolution, whereby the company is struck off the Register at Companies House. BUT – this is not without risk!

There are rules and procedures, which must be complied with to ensure Dissolution is done correctly, and that you, as a director or shareholder, are not committing an offence. Once a company is Dissolved, any remaining company property automatically belongs to the Crown!

Dissolution does not absolve directors or shareholders from any personal liability they may have.

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Members Voluntary Liquidation (MVL)

  • Are you considering retirement?
  • Do you want to restructure your solvent business?
  • Do you require a tax-efficient way of distributing accumulated profits to shareholders?

From 1st March 2012, the Extra-Statutory Concession which allowed shareholders to realise assets informally, and pay Capital Gains Tax ended. The new rules meant that informal distributions totalling over £25,000 per Company, would be subject to Income Tax.

It is only via an MVL that total distributions from solvent companies over £25,000 can be subject to Capital Gains Tax.

BEACON have developed a streamlined process for assisting Director/Shareholders wishing to extract dividends from solvent companies in the most tax efficient way possible and can normally allow a same day payment of funds to Shareholders as a Capital Distribution.