The current economic outlook is to say the least, uncertain. Economic questions cloud the future. Interest rates, inflation, and the ongoing implications of Brexit have an impact. As does the consequences of global warming and the conflict in Europe and further afield. Forthcoming elections both here and abroad also make it harder to understand a business’ viability trading forward.
The Macroeconomic Environment Impacts Businesses
There will always be insolvencies. This does not have to be a reflection of the directors and individuals involved. Businesses fail for many reasons. Often this is not a result of decisions taken by directors or stakeholders. These issues are frequently outside of day to day trading decisions. And more likely to be a result of the macroeconomic environment.
Making the decision to cease to trade or perhaps liquidate a company, will be a difficult one. BUT in the right circumstances, a positive decision. A decision that should not be viewed as a stigma. In fact, such a decision could help protect a director from exposure.
What might seem to be a multitude of issues can be resolved through liquidation, thereby providing the opportunity to rationalize or recommence trading with a new business that is better equipped into the future.
Many directors naturally worry about employees, unpaid bounce back loans, overdrawn directors loan accounts and personal guarantees that might have been given. These however need not be problems and in the first instance, before taking any decisions, these can be talked through to examine the issues to facilitate a strategy which may result in the rescue of the company. Or at the very least provide directors with the information to move forward armed with the knowledge to protect their future and take the right decisions.
Understanding when to get advice from an Insolvency Practitioner
When creditors start piling on the pressure, it’s crucial to seek advice ASAP to spot and tackle any issues head-on.
Local insolvency practitioner Hayley Maddison, Director of Maidment Judd says
Advice is free, confidential and of no obligation to take immediate action. Seeking professional advice should not be viewed as admitting defeat but as a sensible, proactive and responsible action for any company director to take.
Don’t put off getting advice from a licensed insolvency practitioner. Seeking advice sooner, opens up more options and can protect directors’ personal positions. Because by understanding what you can and can’t do, ensures you make the right decisions.
Do get in touch if you would like to discuss your accounting or tax needs – you can call us on 01992 444466 or email directors@hbaccountants.co.uk
The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors
Read our Latest Posts Below
- Happy 50th Birthday to Karen Chase, HB Accountants Director
HB Accountants’ Director Karen is turning fifty! It’s inspiring to see her journey from starting at HB straight out of university, to becoming a Director. Find out some lesser-known facts about Karen and her fundraising work outside of HB Accountants… - Download your 2025-26 Tax Card – all the Key UK Tax Rates in One Place
HB Accountants understand how important it is to stay on top of the latest tax rates and allowances. If you are running a business, managing payroll or planning your personal finances, our Tax Card is a great resource. We summarise all the key UK tax rates you need in one convenient place. - HB Accountants Podcast: Episode 3 Year End Tax Planning Tips for Individuals
Following the success of our previous episodes, HB Accountants is excited to announce Episode 3 of our podcast series: Year End Tax Planning Tips for Individuals. This installment is dedicated to helping individuals navigate the complexities of personal tax planning as the fisccal year draws to a close. - HB Accountants Podcast: Episode 2 Smart Tax Planning Tips for BusinessesWelcome back to the HB Accountants Podcast. After the success of our first episode, we are excited to bring you Episode Two, where we tackle a crucial topic for every business owner – tax planning.
- Working From Home tax relief – you can still claim for the Covid-years
During the lockdowns of 2020-2021, a number of people were asked to work from home. The Working From Home Rules on Tax Relief were relaxed to cover additional energy and other household costs encountered by working from home. The rules for working from home tax relief have evolved now that people are back to working … Continue reading
