01604 212150 (Northampton) 01908 033150 (Milton Keynes) 01234 989150 (Bedford)
Last weeks laser tag event was a huge success.
A massive thank you to everyone who turned up and got involved. We’re incredibly grateful for your support and are so pleased to have brought young people together for a fun and memorable experience!
The independent football regulator recently released a damning report on football finance. Some of those findings were:
Since 2004 there have been 23 league clubs enter into an insolvency event (one of those twice and a second exited administration into a company voluntary arrangement). At PBC we have had experience, having handled two football administrations, while having also advised two other league clubs.
Many may say player wages are far too high, but that is not the principal reason for the current financial challenges, which include:
In a review of football governance undertaken by the Secretary of sport and culture, Gary Pettit of PBC was asked to contribute, where he suggested the governing rules are not fit for purpose. It does not matter if you are Arsenal or Peterborough; the rule requirements are the same. That is like saying the cost of repairing the bodywork of a Mini should be the same as that of a Rolls Royce. There is no recognition of the obvious difference. For example, as administrator of a non-league club Gary was asked by the Football Association why he was not looking to reduce overheads by selling players. In response Gary said, “If you can point out a player worth more than a Mars Bar then please point him out and I will sell him tomorrow. This is not Man United!”
A football club is often the centre of a community. When you look at Bury, Macclesfield or Chester, it was not simply a company failing, it had a direct impact on the population and was subject to far more press coverage than an everyday business. However, the fact remains most clubs rely on one person; a benefactor who is open to pouring money into the pit whereas, if it were a normal company their statutory duties would be telling them to close down abruptly.
A well-known business entrepreneur once said when you own a football club you hang your brains on the coat hanger at the entrance as you walk in. Unfortunately, that has been demonstrated on occasions, including a former World club champions rugby league club where they traded long beyond the point of no return on the high financial structure it had adopted.
If your business is experiencing financial difficulties and you need any advice, 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.
“How do I liquidate my company?” A common opening question when directors take that step to call PBC and it is indicative of the (wrong) perception of what must be done when a company is in financial difficulties.
The fact remains companies that are in financial difficulties have numerous options, all designed to address the size and nature of a business, together with the issues the company is experiencing. For example, companies with an annual turnover in excess of £10 million may consider a Corporate Restructuring Plan. Readers may recall Thames Water were in court in 2025 due to unmanageable levels of debt. That was proposals for a restructuring plan.
In general, companies have numerous options and these include (but not limited to:)
Administration
Administration is available to a company that is (or likely to become) insolvent. It is designed to protect a company whilst plans are formulated to achieve one of the statutory objectives. Administration is also available to a partnership and reference below to company and directors should be read as partnership or partners.
Pre-pack sale
A sale of the business is agreed but not completed until the administrator is appointed when they sign off the sale agreement. Where there are common directors, an independent evaluation of the potential sale must be obtained.
Company voluntary arrangement
A Company Voluntary Arrangement is a procedure which enables an insolvent company to reach an agreement with its creditors to delay or compromise the payment of its debts. A CVA is flexible and can be adapted to meet the needs of any business and allows a company to propose repayments in line with what is affordable.
Creditors voluntary liquidation
Creditors’ Voluntary Liquidation is a procedure whereby the directors of an insolvent company can voluntarily take steps to wind up the company. A CVL is designed to dispose of the company assets and distribute proceeds to creditors. CVL’s are the most common form of insolvency in the UK.
Compulsory liquidation
This is where a creditor of the company is owed £750 (or more) and petitions the court for winding up as a debt enforcement process. If the winding up order is made the regional official receiver becomes liquidator in the first instance.
Some of the other formal procedures can be used as a means to defeat a winding up petition, provided there is a clear benefit to the company creditors as a whole.
The above are the more common options available and there are times a company will use more than one of them during its time under an insolvency regime. However, the key message is the sooner directors take advice, the more options that are available, which is important on may levels, including preparation for the possible legacy following the company entering a specific process.
If you need any advice on the appropriate way forward for your business, 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.
When advising directors on a company’s financial position, invariably, HMRC are a significant creditor, and we are seeing them become more aggressive in their demand for payment. On the flip side, sometimes, they are not chasing at all but this still keeps the directors up at night not knowing which way to turn.
At PBC we believe that “honesty is the best policy” and in our discussions with directors we are very inquisitive about:
This final question is often responded too along the lines of “continue to trade, but I am worried how HMRC will react”.
We aim to provide transparency in our discussions with the directors and HMRC. Needless to say, they do not want to close a company down, they want it to continue to employ people and pay taxes. However, they also like transparency so talking to them helps directors understand how they react when funds are owed and HMRC understand that the director is taking this seriously. Could there be a possible time to pay agreement or if that’s not possible what alternatives can be considered.
If you or a client has HMRC liabilities and would like to look at options available 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 https://lnkd.in/ehKHz4K for further information.
Andy Burnham has not ruled out any tax rises in the Autumn budget as the state of the public finances are said to be challenging. He has said that he would adopt a careful approach to tax rises, but what that means will only come out at the budget.
With higher-than-expected government borrowing and increasing inflation does he cut spending or increase taxes, that is the dilemma.
In these uncertain times are you thinking about selling up and taking hard earned profits out of your company. The current business asset disposal relief (BADR) is 18% which has increased from 10% over the last couple of years. Whilst there are no indications that this relief will be touched in the Autumn budget can you take the chance?
If you are considering a member’s voluntary liquidation (MVL) and you would like to discuss how this works, our expertise in this field will provide valuable information and advice so 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.
#tax #mvl #northampton #membersvoluntaryliquidation
Can you believe it has been six years since we were walking around wearing masks and queuing to join the one-way system through food shops. The “COVID-19 generation” will recall many differing experiences and the change in lifestyle brought on with lockdown.
As part of supporting businesses, the then Chancellor, Rishi Sunak introduced the bounce back loan. This was “Sold” as a quick and easy loan, based upon a maximum 25% turnover or £50,000 (whichever came first) and some £47 billion was loaned by financial institutions, supported by a Government guarantee.
Perhaps its biggest failing was the lack of safeguards with the application, itself and this has resulted in the Government Insolvency Service (“IS”) taking action where directors abused the process. In 2024/25 IS reported 688 people were disqualified from being directors for periods that averaged 9 years. In some of the worst examples, custodial sentences have been handed down.
The IS has also sought confiscation orders and compensation where proven wrongdoings have occurred. Recently, they reported confiscations amounting to £988,099 and recoveries of some £581,525. In addition, the IS have secured orders and undertakings to repay almost £12.7 million with recoveries (actual and ongoing) amounting to some £8.2 million of that amount.
In the grand scheme of things, the actions taken by IS are merely scratching the surface and include some of the worst cases that have arisen. At PBC we have seen many companies where there remains an unpaid balance due under the bounce back loan and we remind directors that provided the original application was appropriate (ie it followed the eligibility requirements) and the funds were used for genuine business purposes then it is highly unlikely you will be facing action by the IS.
If you are concerned about an outstanding bounce back loan or need wider business or personal financial advice, 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.
A director recently engaged PBC to assist them defend a substantial monetary claim being made by the liquidator of her company. That director is (not uncommonly) asking why is this happening and can the liquidator do this and what has she supposedly done wrong? The fundamental basis of the claim surrounds a breach of director duties when a company becomes or is likely to become insolvent.
The Government recently launched the Corporate Civil Enforcement Reforms Consultation, which is aimed at enforcement against directors who breach their statutory duties. The consultation is to consider reforms on both the Company Directors’ Disqualification Act and how to place more of a burden upon a culpable director where civil restoration proceedings are concerned.
For over two decades, Gary Pettit of PBC has questioned why the UK does not require first-time directors to obtain some basic knowledge on the governance of a company. As Gary has often said,
“To drive a car, you need to pass a test. To be a qualified Insolvency Practitioner, you have to pass various examinations. But, to be a director and potentially put thousands of pounds of other peoples’ money at stake, anyone can pay a nominal sum and incorporate a company and trade oblivious of demands imposed by statute.”
As part of their response to the consultation, The Association of Business Recovery Professionals (who are the trade body for insolvency professionals) included a need for first time directors to be provided with access to basic training. This would be focussed on principal statutory duties and the core basics of accounting functions.
At PBC we welcome this as many directors fall foul of their duties innocently and without proper understanding. This can cause those directors avoidable (and stressful) issues following an insolvency event. It goes without saying, but a common occurrence of breaching director duties will be when the company is experiencing financial difficulties. Panic may set in or even a self-preservation mode starts to prevail over all other issues. This is where taking early advice can help a director avoid stepping on those “Mines” and not become the next director fighting off accusations of breaching their duties.
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.
What a difference two weeks make!
On 11th June we had our Annual Charity Golf Day which was cold and wet.
Today, Grace Carter-Hands Marli Garratt Ceba-Joy Pink and Charlie Edwards held an event with a difference – STRAWBERRY PICKING and AFTERNOON TEA 🍓.
It was hot ☀️ to say the least but thank you to all those that attended, it was lovely to see you. Perhaps we will do it again next year. Some photos below.
It was wet but thanks to all who attended and played through the weather for our Charity Golf Day yesterday at Rushden Golf Club.
All in all, we managed to raise around £1,800 for the Lighthouse Centre, which is a fantastic result.
Congratulations to Bibby Financial Services who were the winning team.
The individual winner was Luke Halls with Dermot Lally, Richard Crook and Sam Hall all picking up nearest the pin prizes.
We really appreciated everyone’s support.
Thank you to everyone who attended our annual charity quiz yesterday evening raising £1795 for the Lighthouse Centre.
We loved seeing you all and we hope you had a fantastic time with your teams. Lots of laughs and finding out who knew all the obscure answers!
Looking forward to seeing you next year!
Congratulations to the joint winners being Team DFA Law LLP and Team Hawsons Chartered Accountants, Northampton with DFA Law LLP winning the tie breaker and taking home the trophy.
A big well done to the PBC team for all their hard work in setting up and making this happen.
Thank you again for all your support.
