Members’ Voluntary Liquidations – Countdown to 5 April 2026 and a 4% Tax Saving

The rate of CGT that applies to Business Asset Disposal Relief on the lifetime allowance of £1Million is currently 14% until 5 April 2026.  After this date it will rise to 18%.

The above could be a significant tax saving for you or your clients and, if this is being considered, the time to start acting and planning is now.

Should you wish to discuss a Members’ Voluntary Liquidation further then please contact PBC Business Recovery & Insolvency on 01604 212150 (Northampton), 01908 033150 (Milton Keynes), 01234 989150 (Bedford) or email to enquiries@pbcbusinessrecovery.co.uk.

HMRC – an involuntary creditor

In business, companies will enter into contracts or trade agreements with suppliers and customers by a matter of choice.  However, H M Revenue & Customs (“HMRC”) have no choice.  They are an involuntary creditor who must engage in tax compliance relationships.

The current business climate indicates cash flow remains one of the main threats to company survival and, at PBC, we hear claims that because HMRC are not providing that urgent supply or service required, payment of the taxes is not given any priority.  Given that HMRC have more (and expedient) powers of enforcement and recovery than most suppliers, this is wrong.

In two recent reported cases, HMRC:

  • Continued with their petition, notwithstanding the company in question had already entered into voluntary liquidation.  The company was wound up by the court on the basis intense investigations were needed surrounding tax evasion and, in the interests of creditors as a whole the compulsory liquidation was more justified than a voluntary liquidation.
  • Exercised their powers to have a company wound up in the public interest.  This was a company that promoted debt avoidance schemes and the court agreed the operation was detrimental to the taxpayer and the winding up made.

Certainly, at PBC we have noticed a significant uplift in enforcement activity by HMRC and PBC are administering the liquidations of several where there has been tax avoidance or evasion.  These cases can lead to personal liability against directors.

HMRC officers are currently more proactive, seeking to attach HMRC debt to company assets, which could ultimately result in that company being so disabled, it is forced to cease trading.  Generally, HMRC will give you a lot of warnings but, all too often, these warnings are ignored until that warning becomes an enforcement action.

As mentioned, HMRC are not “Trading” with a company.  They do not have that trading relationship but they do have a duty to maximise tax receipts.  Ignoring their threats is misconceived because HMRC will carry out those recovery threats if needed.  However, we find they are willing to being open and candid in a continuous dialogue with them which can often result in a manageable way forward.

If you are struggling with tax liabilities and need any advice or assistance, or on any corporate restructuring or insolvency-related issue, then please contact PBC Business Recovery & Insolvency on 01604 212150 (Northampton), 01908 033150 (Milton Keynes), 01234 989150 (Bedford) or email to enquiries@pbcbusinessrecovery.co.uk. Alternatively, visit www.pbcbusinessrecovery.co.uk for further information.

PBC Charity quiz night

Thank you to everyone who attended our annual charity quiz yesterday evening raising £1,779 for the Lighthouse Centre.

We loved seeing you all and we hope you all had a fantastic time, looking forward to seeing you next year!

Congratulations to …..

Rollasons Solicitors LLp our winners

Clifford Roberts Chartered Accountants

Phipps Henson McAllister and Tollers

A big well done to the PBC team for all their hard work in setting up and making this happen, and a shout out to this years quiz masters Claire Goodacre and Liv Chamberlin.

Thank you again for all your support.

#quiz #quizmaster#insolvency#northampton#teamwork

PBC charity golf day

Thank you so much to everyone who attended the PBC charity golf day last Thursday at Rushden Golf Club.

The sun shone down and whilst there was a bit of a breeze, the weather was perfect.

All in all, we managed to raise around £1,800 for the Lighthouse Centre, which was a fantastic result.

Congratulations to Kingsley Roofers (Paul Bone, Dan Vernon and Martin Crooke), who were the winning team in their inaugural PBC golf day event. Following a complete brain fog by Nick Bonser when totting up the scores, the individual winner was Andrew Hasker with a respectful 40 points albeit, on the day, Dan Vernon was awarded the trophy who came second. Sorry about that and well done to both of you. Andrew, your trophy is on its way 😊

Thanks to Kara and Paul at Rushden Golf Club for a great day.

We really appreciated everyone’s support and hope you all had an enjoyable day.

Early bird catches the worm!

When a company or an individual is experiencing financial difficulties, it is vitally important that early advice is sought from trusted advisors which, generally,  improves the potential outcome for all concerned.  At PBC Business Recovery & Insolvency this is something we advocate all the time and below is a recent testimonial from a director where he has taken advice sooner rather than later….

“I have been meaning to drop you a line since we met up to say many thanks for your time and sage advice regarding my options to keep cashflow running and stave off the need to investigate any other more drastic solutions at this stage. I have managed to put a payment plan in place for the VAT as suggested, alongside the corporation tax plan already in place, so this has enabled me to cover the redundancy costs for a couple of positions, with the ongoing savings that this will provide hopefully being sufficient to see us through to a more buoyant trading environment. As you said when we met, hopefully this will mean we don’t need to meet again any time soon in a professional capacity (in the nicest possible way!) but I will certainly let you know how we get on at the other side of all this in any event. Have a good weekend and thanks once again”

If you need any advice or assistance with any financial concerns, PBC are here to help and the sooner advice is sought the more options that are available, which can include no formal instruction to us. Please contact us on 01604 212150 (Northampton), 01908 033150 (Milton Keynes), 01234 989150 (Bedford) or email to enquiries@pbcbusinessrecovery.co.uk. Alternatively, visit www.pbcbusinessrecovery.co.uk for further information.

Collaborating for Success

PBC Business Recovery & Insolvency are dealing with the Administration of the UK subsidiary of a very well-known coach company that was based in Belgium.  Apart from the usual office furniture and equipment, together with plant and machinery, the company owned its freehold trade premises.

The chattels all sold for the higher end of valuations, but the highlight was the premises.  Agents had valued the premises with instructions to give serious consideration to offers in excess of the minimum expectation. As a result of a short marketing campaign, the agents received several offers but rather than simply accept the highest offer, the interested parties were placed on notice to submit their best and final bid.  The result was the property was sold for nearly twice as much as expected.  This will mean a return will be paid to unsecured creditors, more than double what was originally envisaged.

You cannot substitute experience, and the outcome of this property sale was the result of the vast experience at PBC, working alongside Wilson Browne Solicitors and Lambert Smith Hampton, who should be recognised for their part in this success. 

If you need any advice or assistance on any corporate restructuring or insolvency-related issue, then please contact PBC Business Recovery & Insolvency on 01604 212150 (Northampton), 01908 033150 (Milton Keynes), 01234 989150 (Bedford) or email to enquiries@pbcbusinessrecovery.co.uk. Alternatively, visit www.pbcbusinessrecovery.co.uk for further information.