Insolvency doesn't have to be the end
There’s no doubt that we are entering a difficult period for many businesses with the government’s coronavirus support measures being scaled back.
Here are some quick points of action you should consider taking now to put your business in the best possible position going forward:
HMRC debt recovery has begun again – it is important for you to engage in discussions with HMRC early and don’t ignore any correspondence. HMRC had been largely forgiving with its ‘Time to Pay’ arrangements.
Businesses are required to start paying back bounce back loans – while cash flow may be improving for your business with the easing of restrictions, outgoings will begin to increase when loan repayments start. It is important to consider all creditors; remember, you can’t prefer one creditor over another.
The end of furlough – Are you struggling to pay the current salary contributions of furloughed staff? If so, you should be considering redundancies or restructuring early.
Landlord action recommences in March 2022 – this may seem a way off yet, but if you have already accrued substantial rent arrears now or are expecting to before March, you should address this by opening a dialogue with your landlord, whether directly or through your solicitor to negotiate repayment options which benefit both parties.
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