CVA and business credit rating

20 September 2017

Thanks for contacting KSA Group today. I hope that we have been able to give you some options to think about.

From what you have told me, the company looks to have a viable future; the fixed contracts will help and cashflow looks strong. So a CVA looks the best option. However the use of a CVA will remove any credit rating - this can be partly solved by using a  Hive Down to ensure that new contracts are tendered for by a new subsidiary company: https://www.companyrescue.co.uk/cva-company-voluntary-arrangement/hive-down

Your ODCA (Overdrawn Directors Current Account) at September was £108k and that has been filed in the company’s accounts. This will have to be part repaid in any CVA. If the company is wound up, the liquidator would pursue you personally for this. As I said a deal would be done if you have no personal assets or means to repay.

Any drawings taken from October to now should go through the PAYE scheme as soon as possible if a CVA is being proposed.

I attach a letter draft for you to use to send to the HMRC Enforcement office in [town]. Please edit as you see fit. This will hopefully buy you time.

Would you like to arrange a meeting? We don't charge for any meetings or for the detailed report that we will issue soon after the meeting.

The Ultimate Guide For Worried Directors

The Ultimate Guide For Worried Directors

Worried about poor cashflow? How to win new work? How to pay wages on pay day? For expert advice on a range of issues download our free Ultimate Guide For Worried Directors today.