The director contacted KSA Group in May 2013 to discuss the company's financial position. The company was a small financial consultancy operating in the banking sector and was run by a sole director.
The company was incorporated in 2007 and had been trading well and making reasonable profits. Whilst the company was keeping up to date with its VAT liabilities, it began to accrue arrears for corporation tax from 2009/2010.
The director agreed an arrangement with HMRC to pay the corporation tax arrears over 12 months, but eventually defaulted on this arrangement after 8 months leaving c. £30k arrears. In addition, c. £26k was about to become due. HMRC was growing impatient and this prompted the director to seek professional insolvency advice.
The director realised that the company was not realistically going to be able to repay the corporation tax arrears, and pay the amount which was becoming due, while keeping up with current liabilities and resolved to place the company into voluntary liquidation in the interests of not making the creditors position any worse.
KSA Group was appointed by the director to liaise with the company's creditors and produce a full and final statement of affairs. A creditors meeting was called and KSA Groups licensed insolvency practitioners Eric Walls and Wayne Harrison were appointed as joint liquidators by the creditors on 2nd July 2013.