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.
How does a CVA work?
The company agrees to repay some or all of its debts from future profits or asset sales over an agreed period (usually 5 years).
Where a CVA successfully completes, it can allow for the balance of debt to be written off where is cannot reasonably be paid.
CVA’s are often used as a procedure to pay any debts, such as tax owed to HM Revenue & Customs via a formal legally binding arrangement.
How long does a CVA last?
This will depend upon the company’s financial position, but most standard CVA’s last for between 3 and 5 years.
When will a CVA end?
Generally, when all sums due under the agreed CVA have been paid and the company has successfully complied with its obligations due under the Arrangement.
If you would like to discuss the possibility of a CVA for your company, call us on 02380 651441 or email firstname.lastname@example.org. All initial consultations at Beacon are free of charge!
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.
Often a deal can be agreed in advance to ensure the inherent added value of the business is not lose, trading relationships not interrupted and service to customers is maintained.
The appointment of an Administrator can occur in a number of ways, by a number of people, depending on the circumstances and what is best for everyone involved.
If your company is subject to creditor pressure, if you are concerned about cash flow, the impact of a bad debt or are considering restructuring and feel there is a viable business worth saving, contact Matt Fox on 02380 651441 or via email email@example.com to discuss whether an Administration would be right for your company.
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.
You want to be sure that Liquidation is the best solution for your company.
At Beacon we will guide you through the liquidation process.
Is your company struggling to pay its debts as and when they fall due?
Do you feel that Liquidation may be the only way?
A 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.
A CVL is director led, but you will need the assistance and guidance of a Licensed Insolvency Practitioner to place your company into CVL; and at BEACON we work with you through the process.
Contact us on 02380 651441 or email firstname.lastname@example.org for free independent advice tailored to suit your company. All initial consultations at Beacon are free of charge!
Is your company is receiving County Court Judgments (CCJ’s)? If yes, then action is required!
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!
The earlier you seek advice, the more options that may be available to you. Contact us on 02380 651441 for independent professional advice. All initial consultations at Beacon are free of charge!
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.
At Beacon we can help you avoid the risks. If you wish to explore this option, please contact us on 02380 651441 or email Cheryl@beaconllp.com.
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.
The process is straightforward and easy for all involved:
- BEACON prepare and can send all documentation via email and accept scanned, executed documents in return
- The Declaration of Solvency (an asset / liability statement of the company) is sworn in front of any local solicitor or commissioner for oaths (normally charging approx. £10) and then returned, either via email or post to us.
- Upon receipt of these documents, the MVL can usually commence the same day, with funds available for payment to Shareholders on that same day, as a Capital Distribution
- Any VAT paid on our fee and disbursements can usually be reclaimed and paid out to shareholders (if the Company was ever VAT registered).
No hidden costs
BEACON charge a fixed fee, including disbursements, from £2,000 plus VAT.