News
IS IT TIME TO PAY?
When it comes time to pay Corporation Tax lots of businesses can’t because the money has already been spent! HMRC wants its money and is promptly issuing legal proceedings. The payment can have a s ...

When it comes time to pay Corporation Tax lots of businesses can’t because the money has already been spent!

HMRC wants its money and is promptly issuing legal proceedings. The payment can have a clocksevere effect on your cash flow for the rest of the year and by then, there may be arrears in both VAT and PAYE.

Time to pay arrangements can be proposed to HMRC, by working with your Accountant and licensed Insolvency Practitioner they can quickly assess if this will be a viable option for your business and help you to prepare a business recovery and Time to Pay plan that meets the rigorous scrutiny of the HMRC and will help you to resolve your debts and successfully re-build your business. Find out more about Time to Pay Arrangements click here.

Ideal Corporate Solutions provide a comprehensive range of business recovery and insolvency solutions.

ICS have a number of insolvency and business funding solutions available that can be tailored to your particular situation. By getting in touch with us, you can expect to deal with specialists who are friendly, professional and effective in what they do.

Our track record in dealing successfully with businesses facing worrying financial problems speaks for itself.  To find out more contact ICS today.

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A Quick Reference Guide for Accountants: Time to Pay Arrangements
HMRC is getting tougher on tax. For any of your clients that are experiencing difficult trading conditions and facing growing tax problems negotiating a Time to Pay (TTP) arrangement with HMRC can hel ...

HMRC is getting tougher on tax. For any of your clients that are experiencing difficult trading conditions and facing growing tax problems negotiating a Time to Pay (TTP) arrangement with HMRC can help.

TTP arrangements help thousands of businesses who are struggling to meet their tax bills to clear these debts and continue trading. Even businesses that have had TTP arrangements in the past can still apply for a new TTP arrangement, as long as there was no default on the original terms and the business has had a good compliance and payment history with HMRC prior to the current tax arrears.
With the right guidance, you can help them put a stop to HMRC debt recovery procedures and agree on a realistic payment plan that will help to clear tax arrears.

Principles & Guidelines of Time to Pay

  • HMRC will not reduce the total amount of taxes due when a TTP arrangement is made.
  • All returns will need to be up-to-date and all future returns must be filed on time.
  • HMRC needs to be satisfied that the applicant is genuinely unable to pay their taxes on time and that the business has explored, but been unable to find, alternative source of funding.
  • The viability of a business must be demonstrated
  • Your clients must make a reasonable proposal in terms of what they can afford over a specific time period. HMRC will review previous accounts to ensure proposals are realistic
  • Plans must show that money isn’t being used elsewhere i.e. for expansion or investment purposes.
  • Proposals must show that instalments are to be over the shortest time period reasonably possible – usually within 12 months.
  • By entering into a Time to Pay agreement in advance of the due date for VAT and income tax, and adhering to the terms of the agreement, your client can avoid VAT late payments penalties and PAYE, income or corporation tax late payment penalties.
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ICS support Bolton Lads & Girls Club
Ideal Corporate Solutions (ICS) have recently sponsored The Bolton Beer Festival, in aid of Bolton Lads & Girls Club (BLGC). This was the 21st festival and also one of the most successful with £ ...

Ideal Corporate Solutions (ICS) have recently sponsored The Bolton Beer Festival, in aid of Bolton Lads & Girls Club (BLGC).

This was the 21st festival and also one of the most successful with £40,000 being raised for the club. Bolton Lads & Girls club is the biggest youth centre in the UK providing weekly activities for over 3,000 local youths. ICS have been patrons of the charity for a number of years and always do what they can to support this worthwhile local charity.

Andrew Rosler, Managing Director at ICS said ‘It has always been important for us to support local charities and the work that BLGC does for young people in the area is great. I am proud to help support them so that they can continue to provide somewhere for young people to go to help them develop their knowledge and skills.’

The money raised at the beer festival will invested into the Club’s core offer which is always the most difficult to secure funding for, a seven night a week youth club service providing over 200 children and young people each and every night somewhere to go, something to do and sometimes more importantly someone to talk too.

If you would like to find out more about BLGC visit their website here http://www.boltonladsandgirlsclub.co.uk

 

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Directors
Director Disqualification is on the increase: Do you know the facts?
The Insolvency Service are taking tougher action as the number of Directors disqualified in England, Wales & Scotland increased by 25% since last year. Figures from the Insolvency Service show th ...

The Insolvency Service are taking tougher action as the number of Directors disqualified in England, Wales & Scotland increased by 25% since last year.

Figures from the Insolvency Service show there were 1,208 disqualified directors during 2013/2014, up from 969 in 2012/2013.

In the year 2013 the Insolvency Service also increased the number of Director disqualification proceedings they issued by 19%.

A clear warning to Directors to act in accordance with their fiduciary duties and behave responsibly to creditors. This crackdown is directly in line with Business Secretary Vince Cable’s recent announcement regarding even tougher measures to tackle ‘dodgy directors’ and improve business transparency.

READ MORE ABOUT HOW DIRECTORS DISQUALFICATIONS WORK HERE….

Many company Directors don’t fully understand their duties and often turn to their Accountants for advice.  It’s vital that Accountants have a good understanding of Directors duties, including recent changes in legislation and the disqualification process to ensure they can provide the best advice and documentation to help clients and to protect their practice.

ICS are holding two free seminars for Accountants to help them understand what the Directors Duties Act means for you and your clients.

 

DIRECTORS DUTIES KNOW THE FACTS…

14th October at Holiday Inn, Bolton
AND
21st October at the Halliwell Jones Stadium, Warrington

Both events are 12pm until 2.30pm, with lunch provided

To enrol for this critical seminar, simply email us at ICSseminar@idealcs.co.uk and state which event you will be attending. (Bolton or Warrington)

 

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Board meeting
Free lunch time seminar – Directors Duties- Know the facts
We are holding two free seminars in October about Directors Duties. Our MD Andrew Rosler, provides advice on how to ensure clients adhere to Director’s Duties especially during difficult trading con ...

We are holding two free seminars in October about Directors Duties. Our MD Andrew Rosler, provides advice on how to ensure clients adhere to Director’s Duties especially during difficult trading conditions.

A business falling into financial troubles which leads to an insolvent business can result in the Directors being investigated under the Director’s Disqualification Act. It is important that you understand how this can impact on you and your clients.

We will be holding two seminars
14th October at Holiday Inn, Bolton

AND

21st October at the Halliwell Jones Stadium, Warrington

Both events are 12pm until 2.30pm, with lunch provided

To enrol for this critical seminar, simply email us at ICSseminar@idealcs.co.uk and state which event you will be attending. (Bolton or Warrington)

Please remember to include the names of all guests due to attend the event as well as any specific dietary requirements.

 

 

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Seek early advice if you receive an accelerated payment notice!
Andrew Rosler, ICS Managing Director and licensed Insolvency Practitioner talks about Tax Avoidance Schemes and Accelerated Payments following new powers granted to HMRC, by which they estimate to rec ...

Andrew Rosler, ICS Managing Director and licensed Insolvency Practitioner talks about Tax Avoidance Schemes and Accelerated Payments following new powers granted to HMRC, by which they estimate to recover £7billion in avoided tax payments.

Avoidance Schemes

HMRC will now start issuing follower notices and accelerated payment requests to individuals and companies they consider have participated in tax avoidance schemes. Generally avoidance schemes will be given a unique coding to insert on corporation tax return DOTAS.

Company Directors ought to get advice should the Company not be in a position to repay any Tax that should have been paid in the absence of the avoidance scheme.

Therefore a key question is whether the Director’s decision to enter into an avoidance scheme is a breach of their duty to creditors, if the Company subsequently went into an Insolvency process because it was unable to repay the tax it avoided?  Will Directors be subject to tax on any benefit they received under the avoidance scheme?

The answer to these questions depends on a number of factors including the:

• type of scheme

• advice of the professionals the Directors relied upon

• level of insurance cover sold with the scheme

• general conduct of the Directors

• level of deficiency ultimately facing the Company.

If the Company has been dissolved it is most likely it would have come to the attention of HMRC who could have objected to the striking out process.

If the Company had already gone through an Insolvency process then the contingent claim from HMRC ought to be held as being part of the Insolvency and hence the debt would die with the Company (subject to various Insolvency offences mentioned below.

Recovery/Insolvency Process

The first principle is that a Dissolved Company cannot be pursued for Tax due nor can it receive any repayments of Tax.  The necessary action would be for the Company to be restored to the register and then formal recovery can begin.

A creditor has 6 years from the date of dissolution to apply to restore a Company through the Courts.

If the Company cannot repay the debt then the creditor might instigate winding up proceedings to recover the debt.  Once/if the Company goes into Compulsory Liquidation a Liquidator can challenge certain transactions that the Company Directors caused the Company to enter into prior to its Dissolution. Such transactions include;

Transaction at an undervalue:  Assets being transferred at less than market rate – this period can be 2 years from the date of the winding up petition if to a connected party –remedy may overturn the transaction.

Preference: The payment to a creditor to put such creditor in a better position that other creditors – 2 years period of claw back if a connected creditor.

Misfeasance: Action against a Director who has acted contrary to their fiduciary duties –no time limit.

Transaction to defraud creditors – A transaction at an undervalue with the intention of putting assets outside the reach of creditors.

It must be borne in mind that the Court will look at contingent creditors when determining whether the actions taken by Directors are valid or not.  Both misfeasance and transactions to defraud creditors are likely to be claimed against the Directors personally. Should the Directors defence fail, then they might face Bankruptcy proceedings should they not be in a position to repay the claim.

Taking advice

This is a new area facing Directors, HMRC and Insolvency professionals so it is premature to determine how aggressive HMRC will be in taking retrospective action against dissolved companies.  It is likely this will depend on the type of scheme and the size of the tax loss. The attitude of the Insolvency Practitioner might also dictate how aggressive the insolvency offences are litigated.  These are both unknowns at this stage however, it is important that Directors take advice on either their current Company duties and also what remedies might be taken on previous Directorships or Dissolved companies.

I would recommend that the principle of tackling Directors retrospectively (including the restoration of companies) be looked at by instructing specialist Insolvency counsel. Alternatively or in addition to, an Insolvency Practitioner might advise on a case by case basis and provide a letter of advice to the Director on the potential issues that might arise together with suggestions of various options.

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ICS Support the British Transplant Games with Ladies Night
The British Transplant Games have arrived in Bolton for an exciting weekend of competitions and games. The contestants are amazing survivors of organ transplants and the games aim to highlight what pe ...

2014-06-26-18.21.40resizedThe British Transplant Games have arrived in Bolton for an exciting weekend of competitions and games. The contestants are amazing survivors of organ transplants and the games aim to highlight what people can achieve after these fantastic life saving procedures.

Ideal Corporate Solutions recently held a Ladies Night event in honour of the games with the aim to raise awareness of the games and organ donors, as well as raise some money to help with the organisation of the games.

The ICS Ladies Night brought together over 20 woman from local Bolton businesses for a night of handbags, make up and butlers in the buff. Natalie Kerr, a double lung transplant survivor and Bolton’s representative of the Transplant Games came to provide a talk on the games and why they are important, providing people the opportunity to sign up to the family fun run which was taking part within the games as well as the opportunity to sign up to the organ donor register.2014-06-26-18.26.24resized

The night raised £140 and the photographer, Heather B, donated her fee of £120 to the games. ICS rounded the figure up so in total we are proud to say we raised £300 for this great event!

Rachel Lee, Head of Operatons at ICS commented “We think it is great that the Transplant Games have come to Bolton and we wanted to do something to help support this. We had already wanted to do a networking event for the women in local business so it seemed like a great idea to combine the two. We had a great evening and everyone was really inspired by the games. Thanks to everyone who came and helped make it such a success.”

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Tax payment
Accelerated Payments- What Does it Mean?
In the last month the Finance Bill received Royal Assent giving HMRC powers to force individuals and companies involved in tax avoidance schemes to make upfront payments in the form of accelerated pay ...

In the last month the Finance Bill received Royal Assent giving HMRC powers to force individuals and companies involved in tax avoidance schemes to make upfront payments in the form of accelerated payment notices. Once an accelerated payment notice has been issued to a taxpayer, they cannot appeal and will be required to pay the tax disputed within 90 days. HMRC has said it will write to people before issuing the notice.
The amount of money taxpayers and corporations are required to pay via the notices could run into millions of pounds and potentially require the prompt liquidation of assets to meet the HMRC’s demands.

It is estimated that around 43,000 accelerated payment notices will be issued over the next two years. Roughly 33,000 will be issued to individual taxpayers concerning £5.1 billion of tax under dispute and 10,000 will be issued to corporates for £2.1billion worth of tax.

HMRC have published a list of arrangements this week that it deems to be tax avoidance schemes. The list includes over 1,000 scheme reference numbers, known as DOTAS numbers, which investors would have included on their tax returns.

Transactions entered into by individuals or companies, including the payments made to tax avoidance schemes, could be challenged by a subsequently appointed Insolvency Practitioner. Furthermore, companies that have since been dissolved could be restored to Companies House and then be subject to recovery action by HMRC including winding up proceedings.

Andrew Rosler, Managing Director of ICS comments: “this may pose a problem for many businesses who do not have the funds to pay these large tax bills. This could result in many of these businesses falling into insolvency. It is important that companies and individuals take advice from a licensed Insolvency Practitioner if they do not anticipate that they will be able to meet the potential liabilities.”

For more advice on accelerated payments and how ICS can help, contact our team today on 0800 731 2466

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Companies House data to be made freely available
Companies House has announced that as of Q2 2015, it will make all of its digital data available free of charge. The change is part of an agreement by G8 leaders to improve corporate transparency to ...

Companies House has announced that as of Q2 2015, it will make all of its digital data available free of charge.

The change is part of an agreement by G8 leaders to improve corporate transparency to help combat tax evasion. During 2013/14 users spent an estimated £8.7m on information from Companies House.

Business Secretary Vince Cable said: “The government firmly believes that the best way to maximise the value to the UK economy of the information which Companies House holds, is for it to be available as open data. By making its data freely available and free of charge, Companies House is making the UK a more transparent, efficient and effective place to do business.”

What does this mean for Accountants & SME’s?

Information such as administrator’s reports, director appointments and details, and creditor and debtor particulars will become freely available.

Andrew Rosler, Insolvency Practitioner at ICS said “This change doesn’t make any difference to Insolvency practitioner as we have access to Companies House and other sources However Accountants should be updating their clients on this news and ensuring clients access this free data to assess their potential customers as one of the easiest ways to avoid losing money is to financial health check a business before you trade with them and tailor terms accordingly to minimise risk.  Free access to Companies House data makes this easier particularly for the SME sector”.

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