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Latest insolvency statistics show compulsory liquidations at lowest level since 1989

The latest insolvency statistics show an overall decline in company insolvencies. See our news piece for a full review...

Director banned for eight years due to poor record keeping

Eric Reid, owner of Glasgow Commercials Limited, has been disqualified for eight years after an investigation found he had failed to keep sufficient accounting records for the business. 

The company went into liquidation in August 2013 following a winding up order. HMRC issued a winding up petition to the court in June. 

Due to the lack of information in the company’s accounts, it was difficult to clarify the value of the business and its assets as well as explain certain transactions which were unaccounted for. 

Employee and payroll information was also missing as were salary records for Mr Reid himself.

In August 2014, the garage premises were raided by police as there was suspected drug manufacturing taking place. 

Cheryl Lambert from the Insolvency Service commented:

“Mr Reid’s failure to keep accounting records has hindered the liquidator’s investigations and as a result funds have not been recovered to repay creditors.”

“Taking action against Mr Reid is a warning to directors to take heed of their duties and obligations.”

Facing HMRC Payment Problems?

HMRC is sometimes termed a 'sophisticated creditor' as it knows all the tricks and techniques to use in order to get tax back. Of course, this is because they tend to be owed the most amount of money!  

What is more, as the amount of tax owed is rarely in dispute, they do not need to first seek a County Court Judgement, followed by a Statutory Demand.  As such, they tend to go straight to issuing a winding up petition provided they are owed more than £750.

Due to this shorter time frame, it is important to take action quickly if you are having problems paying HMRC. Take a look at our top tips for collecting your own debts  or review our top tips on cutting costs.  If you are still facing creditor pressure then please give us a call!

Please take a look at our new page on HMRC payment problems.

Personal injury law firm, GT Law, has gone into administration

Joint administrators from Quantuma, Andrew Hosking and Simon Bonney, were appointed on the 9th October by First Stop Legal Services Ltd, trading as GT Law. Samantha Palmer of Ashfords has been appointed as the solicitor manager. 

With offices in Essex, Manchester and Liverpool, the firm employs over 100 staff with a company turnover of £7.9 million. 

Despite pre-tax profits of over £179,000 ending February 2014, GT Law has reportedly struggled of late after being referred to the Solicitors Regulation Authority (SRA) over its alleged misconduct with clients’ claims. 

A 2011 injury claim by 16,626 people over the Sonae fire in Kirkby, Merseyside had been dismissed in court this August due to a lack of evidence as well as the handling of claims by two law firms, including GT Law. According to reports, questionnaires about the claimant’s health had been tampered with and cold-calling had been used as a method to draw in new clients to put forward their ‘case’.

Administrators have confirmed that all client files at GT Law will be transferred to surrounding law firms with the clients’ consent. 

Clients will be contacted by the other law firms in due course. Any questions should be directed to 01273 322400 or tom.burton@quantuma.com.

Councils given power to set business rates

Today at the Conservative party conference, George Osborne revealed there will be a new business rate system that gives power to local councils to decide their own levels of rates to charge. 

The government also announced £26 billion raised in business rates around the UK will be passed back to local councils to support funding.

Businesses have been lobbying for some time now for a business rates reform as these tax charges can be hugely expensive, often crippling businesses located in city centres. There is also a lack of transparency in the current system as there is no clear information as to how businesses are valued for different levels of business rates. It is then difficult and costly to appeal. 

Giving more power to local councils is a step in the right direction and will aid healthy competition between businesses and areas. However, it could mean rates increase in some towns or cities if a particular council decides there is a need for it.  

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