Making Tax Digital for VAT: A reminder
We can provide you with advice on the options available and assist with implementing the most appropriate solution.
Individuals who run a business, either as a sole trader or as a partner in a partnership, are personally liable for the debts arising from their business.
Our licensed insolvency practitioners can act as administrators. Once in administration, no legal proceedings can be commenced or continued against the partnership except with the permission of the administrator or consent of the Court.
The solutions we may recommend to a partnership experiencing financial difficulty include:
Operational or financial restructuring
We work alongside the partners and stakeholders to deliver and implement a restructuring solution, which will get the business back on track and help improve cash flow, profit and the value of the business.
Partnership Voluntary Arrangement (PVA)
We can assist with preparing a proposal to creditors based upon payments from future profits. Acceptance of the proposal by creditors will remove immediate financial pressures and allow the business to continue to trade. As with a Company Voluntary Arrangement, a ‘small’ and ‘eligible’ partnership can take steps to obtain a moratorium. If personal assets are at risk during this time, it may be appropriate for partners to enter into separate Individual Voluntary Arrangements to run concurrently with the PVA.
If the partnership requires protection from creditors whilst it is undertaking restructuring, refinancing or is considering a sale, a Partnership Administration may be appropriate.
A partnership can only be placed into liquidation by an order of the Court on the petition of either a creditor or a partner. A partnership cannot be wound up voluntarily. Our licensed insolvency practitioners can act as liquidator.
If you are a sole trader, you are personally liable for the debts of the business and you do not have the benefit of the ‘limited liability’ protection available to businesses incorporated under the Companies Act or the Limited Liability Partnerships Act.
Should a sole trader experience financial difficulty, advice should be sought as soon as possible. We can carry out a review of your business and advise on the most practical and workable solution available.
Solutions we regularly advise sole traders on include:
Our licensed insolvency practitioners have assisted with the financial restructuring of many financially distressed businesses struggling with cash flow problems or facing threats from creditors.
We provide practical, business focused advice to help you achieve your business objectives. Our team of experts are available at any one of our four office locations and have an extensive knowledge and experience across a wide range of sectors.
Critical support to restore financial stability
Joined-up advice across all services, including, Corporate Finance, Corporate Restructuring and Corporate and Business Tax
Considerable expertise and insight into a range of different industries
Recognised as thought leaders in Restructuring and Insolvency - editorial, speaking, commentating and government advice