Surviving the UK’s deepest recorded recession The current recession, triggered by the Covid-19 lockdown, is the worst of any experienced by the G7 nations as well as being the biggest UK recession since records began in 1955. Despite growth returning, the effect of such a deep fall in GDP will have an ongoing effect
HMRC restored to secondary preferential for creditors: How does this impact secured lending? The Finance Act 2020 (‘the Act’) which received royal assent in July 2020 has returned HMRC to the position of secondary preferential creditor in insolvent liquidations. This change will come into effect on 1 December 2020 and will mean that certain
My business is struggling financially because of Covid-19: what are my options? As the economy struggles to recover from the Covid-19 crisis, many businesses are finding themselves in difficulty. It is important to know what help is available and what the options are if you may be facing insolvency. Government support The government are
The treatment of director’s loan accounts in administration or liquidation: Can DLAs be reclassified as remuneration? A recent case has highlighted the dangers of the treatment of a Director’s Loan Account (“DLA”), and the risks to directors of trying to re-categorise their DLAs as salary payments. This can mean that the information previously provided
UK Corporate Insolvency and Governance Bill: General meetings and corporate restructuring A new bill, placed before Parliament on 20 May 2020, has been designed to offer protection to businesses and support the UK economy. The Corporate Insolvency and Governance Bill will allow companies in difficulty to benefit from a range of steps to try
UK Government publishes new guidance for contractual behaviour during the Covid-19 pandemic In May 2020, the Government issued guidance on responsible contractual behaviour in dealing with the performance and enforcement of contracts impacted by the Covid-19 emergency. The document is not legally binding, however, parties are strongly encouraged to follow its guidance for not
The contractual implications of Coronavirus: Can it be a force majeure event? As governments scramble to contain the coronavirus and the World Health Organisation labels as a global pandemic, businesses are facing the fact that contracts they have entered into in good faith may not now be performed. With some areas in quarantine, travel
Bankruptcy and the matrimonial home – what are risks you should be aware of? What is bankruptcy? In its very basic form, where an individual is made bankrupt, their assets will be collected by the Official Receiver or Trustee in Bankruptcy (“TiB”) for the benefit of unsecured creditors. Is your home at risk if
The 7 facts you need to know about setting aside a default judgment When a default judgment is given against a business or individual, they have the right to ask that it be set aside. We look at what a default judgment is and how to make a successful application to have it removed.
