Harveys Insolvency & Turnaround

Peak Development Ltd - Creditors & Customers FAQ's

Tue, 09 Jul 2024 11:35:01 GMT

Frequently Asked Questions - Creditors and Customers of Peak Development Ltd

The business has ceased to trade. No further deliveries will be made and the Company will not be in a position to accept returns from the general public of individual items. On 11 July 2024 Peak Developments Ltd will be placed into Creditors Voluntary Liquidation. We refer customers and creditors to the following ‘Frequently Asked Questions’ FAQ’s in the first instance before contacting the Liquidator’s offices.

Index of FAQ’s

1. I want a refund as my item has not been delivered

2. Prospects of creditors being paid in the Liquidation

3. I am owed money, but have not received a notice of the Liquidation

4. Who gets paid first in this Liquidation?

5. How can I get in touch with former Directors and staff of Peak Developments Ltd

6. Liquidation process explained.

1. Refund for non-delivery of goods

In the event that you have paid for your goods and they have not been delivered, you are an unsecured creditor in the Liquidation proceedings. Please see the FAQ 3 - ‘I am owed money, but have not received a notice of the liquidation’ for what to do.

If you have paid for goods by credit or debit card and they are not delivered, you may be able to get your money back by claiming a refund from your card issuer. Please contact your card issuer as soon as you can if this applies to you. Further information including time limits, is available from Money Helper website at:

https://www.moneyhelper.org.uk/en/everyday-money/credit-and-purchases/how-youre-protected-when-you-pay-by-card

2. Prospects of creditors being paid in the Liquidation

Based on current information, it is anticipated that there will be sufficient any monies to pay unsecured creditors pence in the pound in the future. We are unable to state when this will occur but it is likely to be in excess of 12 months. Please see FAQ 4 ‘Who gets paid first in this Liquidation’ why you would rank as an unsecured creditor. If this position changes, creditors will be advised in future communications from the liquidator.

3. I am owed money, but have not received a notice of the Liquidation

If you are a creditor (owed money by the Company for whatever reason) and have not received notice of the commencement of the liquidation which starts on 11 July 2024, please email Mia@HarveyInsolvency.co.uk with your details. The following information is required in your email:

1. Name

2. Address

3. Email

4. Telephone Number

5. Amount due to you

6. Evidence of the sum due (ie details of your order and evidence of your payment)

7. How do you want us to respond to you, by email/by post

We will respond to you by email, unless stated otherwise by you. We will provide you with a copy of the latest notice sent to creditors and access to the creditors online portal. This portal provides copies of all documentation made available to creditors throughout the liquidation proceedings, for no less than three months from being issued.

4. Who gets paid first in this Liquidation?

The priority of payments in insolvency is stated by legislation under the Insolvency Act 1986. In this matter the order is as follows: -

1. Costs Expenses and costs of the liquidation proceedings.

2. Fixed Charge Holder The bank who holds a legally binding security over specific assets of the Company

3. Preferential Creditors Employee (PAYE) wages to £800 and accrued holiday pay.

4. Secondary Preferential Creditors HMRC for VAT, PAYE & employee NIC deductions.

5. Unsecured Creditors All other parties ‘owed’ money by the Company.

5. How can I get in touch with former people at Peak Development Ltd

Individual data of staff, directors and customers of the Company is protected by GDPR and the liquidator or any other party associated with the Company are unable to answer these questions.

6. Liquidation process explained

On 11 July 2024 the Company will be placed into Creditors Voluntary Liquidation by the shareholders. Creditors accept the start of the proceedings by deemed consent.

During the course of the proceedings, the liquidator will close the Company down, realise its assets, collate and record the creditors’ claims and conduct an investigation as is required under statute. It is anticipated that there will be sufficient monies to pay unsecured creditors pence in the pound.

Debi Harvey of Harveys Insolvency & Turnaround of 2 Old Bath Road, Newbury, Berkshire,

RG14 1QL is anticipated to be the duly appointed Liquidator. The Liquidator acts without personal liability or guarantee. Initial contact with the Liquidator, where required, should be made by email to Mia Greenroyd at Mia@HarveyInsolvency.co.uk .

Debi Harvey is an insolvency practitioner licensed by the Institute of Chartered Accountants England & Wales under licence number 12150 and she and her firm are bound by the Insolvency Code of Ethics.

D J Harvey

Harveys Insolvency & Turnaround Limited

8 July 2024

137 Eat Drink Distil & Lumber Distillers Limited

Mon, 10 Jul 2023 16:31:21 GMT

Frequently Asked Questions - Creditors and Customers of

137 Eat Drink Distil

A trading style of Lumber Distillers Limited

The business is closed. Please find below answers to questions which are frequently asked in these circumstances, we hope this will assist you.

Index of FAQ’s

1. Booked event in advance – What is happening to it?

2. Will 137 EDD open again – Business For Sale

3. How can I get in touch with former people at 137 EDD

4. 137 EDD Website

5. I am owed money, but have not received a notice of the Liquidation

6. Who gets paid first in this Liquidation?

7. Liquidation process explained.

8. Prospects of creditors being paid in the Liquidation

1. Booked event in advance – What is happening to it?

137 EDD is unable to hold any events that customers have booked in advance. If you have also paid in advance the director has made his best endeavours to ensure that you are refunded by the close of business on 12 July 2023.

If you have not received your refund by this time, you will likely be an unsecured creditor in the Liquidation proceedings. Please see the FAQ ‘I am owed money, but have not received a notice of the liquidation’ for what to do.

If you have paid by credit or debit card you may be able to get your money back by claiming a refund from your card issuer. Please contact your card issuer as soon as you can if this applies to you. Further information including time limits, is available from Money Helper website at:

https://www.moneyhelper.org.uk/en/everyday-money/credit-and-purchases/how-youre-protected-when-you-pay-by-card

2. Will 137 EDD open again – Business For Sale

We do not know yet since the business of 137 EDD is currently being marketed for sale. If you are interested in purchasing the business as a whole or the intellectual property of the business please contact MHartley@lsh.co.uk immediately to register your interested. Mr Harley will not deal with enquiries from the public to purchase small amounts of stock, furniture or fixtures and fittings, we recommend you monitor Lambert Smith Hamptons Auction page at https://www.lsh.co.uk/assetadvisory/online-auctions

3. How can I get in touch with former people at 137 EDD

Individual data of staff and the director of 137 EDD is protected by GDPR and we are unable to answer these questions.

4. 137 EDD Website

The website is part of the intangible assets of the Company and is for sale. The website will eventually close or come under the control of a new owner. See FAQ 5.

5. I am owed money, but have not received a notice of the Liquidation

If you are a creditor (owed money by the Company) and have not received notice of the intention to place the Company into Creditors Voluntary Liquidation on 27 July 2023 or the commencement of the Liquidation thereon please email Mia@HarveyInsolvency.co.uk with your details. The following information is required in your email:

1. Name

2. Address

3. Email

4. Telephone Number

5. Amount due to you

6. Evidence of the sum due (ie a copy of your booking or receipt of payment)

7. How do you want us to respond to you, by email/by letter.

We will respond to you by email, unless stated otherwise by you. We will provide you with a copy of the last notice sent to creditors and access to the creditors online portal. This portal provides copies of all documentation made available to creditors throughout the liquidation proceedings for no less than three months from being issued.

6. Who gets paid first in this Liquidation?

The priority of payments in insolvency is stated by legislation under the Insolvency Act 1986. In this matter the order is as follows: -

Costs Expenses and costs of the liquidation proceedings.

Preferential Creditors Employee (PAYE) wages to £800 and accrued holiday pay.

Secondary Preferential Creditors HMRC for VAT, PAYE & employee NIC deductions.

Unsecured Creditors All other parties ‘owed’ money by the Company.

7. Liquidation process explained

On 11 July 2023 notices have been sent to the owners (shareholders) and creditors (people who are known to be owed money) that the Company will be liquidated on 27 July 2023.

On 27 July 2023, the Company will be placed into Creditors Voluntary Liquidation by the shareholders. Creditors are anticipated to have given their deemed consent to the appointment of the members liquidator.

In the intervening period to Directors will conduct his duty and prepare for the winding of the Company.

Harveys Insolvency & Turnaround of 2 Old Bath Road, Newbury, Berkshire, RG14 1QL have been engaged to assist the Director with this process and their Insolvency Practitioner Debi Harvey is anticipated to be appointed Liquidator. Initial contact, where required should be made by email to Mia Greenroyd at Mia@HarveyInsolvency.co.uk .

8. Prospects of creditors being paid in the Liquidation

Based on current information it is not anticipated that any monies will become available to the unsecured creditors. Please see ‘Who gets paid first in this Liquidation’. If this position changes, creditors will be advised in future communications from the liquidator.

D J Harvey

Harveys Insolvency & Turnaround Limited

10 July 2023

Hope Fashion - Customers FAQ's

Fri, 30 Jun 2023 13:23:36 GMT

Frequently Asked Questions - Creditors and Customers

Hope Fashion

A trading style of NM Hope Limited

On 28 June 2023 NM Hope Limited trading as Hope Fashion was placed into Creditors Voluntary Liquidation. The retail business is closed.

We refer customers and creditors to the following ‘Frequently Asked Questions’ FAQ’s in the first instance before contacting the Liquidators offices.

Index of FAQ’s

1. Refund Due for returned items

2. Order not received

3. Gift Vouchers

4. Prospects of creditors being paid in the Liquidation

5. I am owed money, but have not received a notice of the Liquidation

6. Who gets paid first in this Liquidation?

7. Will Hope Fashion open again?

8. How can I get in touch with former Directors and staff of Hope Fashion

9. Hope Fashion Website

10. Liquidation process explained.

1. Refund due for returned items

If you have paid for goods by credit or debit card and they are not received, you may be able to get your money back by claiming a refund from your card issuer. Please contact your card issuer as soon as you can if this applies to you. Further information including time limits, is available from Money Helper website at:

https://www.moneyhelper.org.uk/en/everyday-money/credit-and-purchases/how-youre-protected-when-you-pay-by-card

2. Order not received

The website closed for orders at 1pm om 9 June 2023 and sales made after this date were ‘sold as seen with a no returns policy stated in sale’. All orders, for which payment was received we dispatched by Hope Fashion prior to ceasing to trade. If Hope Fashion was unable to complete delivery of your order, it will have refunded your payment prior to ceasing to trade. Please allow a few days for the payment to have been transacted.

In the event that you have not received a refund or your order, you will be an unsecured creditor in the Liquidation proceedings. Please see the FAQ 5 ‘I am owed money, but have not received a notice of the liquidation’ for what to do.

If you have paid for goods by credit or debit card and they are not received, you may be able to get your money back by claiming a refund from your card issuer. Please contact your card issuer as soon as you can if this applies to you. Further information, including time limits, is available from Money Helper website at:

https://www.moneyhelper.org.uk/en/everyday-money/credit-and-purchases/how-youre-protected-when-you-pay-by-card

3. Gift Vouchers

Hope Fashion can no longer honour its gift vouchers or any credits held by customers. Any sum due to you for the gift voucher or credit rank as an unsecured creditor in the Liquidation proceedings. Please see the FAQ 5 ‘I am owed money, but have not received a notice of the liquidation’ for what to do. If the voucher was paid for by credit or debit card the purchaser may be able to get the money back by claiming a refund from the card issuer. Please arrange for the card holder to contact their card issuer as soon as you can if this applies. Further information, including time limits, is available from Money Helper website at:

https://www.moneyhelper.org.uk/en/everyday-money/credit-and-purchases/how-youre-protected-when-you-pay-by-card

4. Prospects of creditors being paid in the Liquidation

Based on current information it is not anticipated that any monies will become available to the unsecured creditors. Please see FAQ 6 ‘Who gets paid first in this Liquidation’ why you would rank as an unsecured creditor. If this position changes, creditors will be advised in future communications from the liquidator.

5. I am owed money, but have not received a notice of the Liquidation

If you are a creditor (owed money by the Company) and have not received notice of the commencement of the liquidation starting on 28 June 2023 please email Josie@HarveyInsolvency.co.uk with your details. The following information is required in your email:

1. Name

2. Address

3. Email

4. Telephone Number

5. Amount due to you

6. Evidence of the sum due (ie if a returned item, the postage receipt and details of your order returned)

7. How do you want us to respond to you, by email/by post

6. Who gets paid first in this Liquidation?

The priority of payments in insolvency is stated by legislation under the Insolvency Act 1986. In this matter the order is as follows: -

1. Costs Expenses and costs of the liquidation proceedings.

2. Preferential Creditors Employee (PAYE) wages to £800 and accrued holiday pay.

3. Secondary Preferential Creditors HMRC for VAT, PAYE & employee NIC deductions.

4. Unsecured Creditors All other parties ‘owed’ money by the Company.

7. Will Hope Fashion open again & the Website

Efforts to sell the Hope Fashion as a going concern have been unsuccessful. However, we have sold the intellectual property which includes the trading name, website and social media accounts. As this time we are advised that it is not foresee that Hope Fashion will trade as it has done in the past.

8. How can I get in touch with former people at Hope Fashion

Individual data of staff, Directors and customers of Hope Fashion is protected by GDPR and the liquidator or any other party associated with Hope Fashion are unable to answer these questions.

9. Liquidation process explained

On 28 June 2023 the Company was placed into Creditors Voluntary Liquidation by the shareholders. Creditors accepted the start of the proceedings by deemed consent.

During the course of the proceedings the liquidator will continue to close Hope Fashion company down, sell its assets, collate and record the creditors claims and conduct an investigation as is required under statute. It is not anticipated that there will be sufficient monies to pay any of the creditors after costs.

Debi Harvey of Harveys Insolvency & Turnaround of 2 Old Bath Road, Newbury, Berkshire, RG14 1QL is the duly appointed Liquidator. The Liquidator acts without personal liability or guarantee. Initial contact with the Liquidator, where required, should be made by email to Josie Badman at Josie@HarveyInsolvency.co.uk .

D J Harvey

Harveys Insolvency & Turnaround Limited

28 June 2023

Hope Fashion - Customer Notice - Frequently Asked Questions

Fri, 09 Jun 2023 16:00:23 GMT

Creditors and Customers of

Hope Fashion

A trading style of NM Hope Limited

Frequently Asked Questions

Index of FAQ’s

1. Refund Due for returned items

2. Order not received

3. Gift Vouchers

4. Prospects of creditors being paid in the Liquidation

5. I am owed money, but have not received a notice of the Liquidation

6. Who gets paid first in this Liquidation?

7. Will Hope Fashion open again?

8. How can I get in touch with former Directors and staff of Hope Fashion

9. Hope Fashion Website

10. Liquidation process explained.

1. Refund Due for returned items

Hope Fashion made its best endeavours to ensure that all identified consumer refund were processed prior to creasing to trade. In the event that you have not received a refund, you will be an unsecured creditor in the Liquidation proceedings. Please see the FAQ ‘I am owed money, but have not received a notice of the liquidation’ for what to do. In addition, if you have paid for goods by credit or debit card and they are not received, you may be able to get your money back by claiming a refund from your card issuer. Please contact your card issuer as soon as you can if this applies to you. Further information including time limits, is available from Money Helper website at:

https://www.moneyhelper.org.uk/en/everyday-money/credit-and-purchases/how-youre-protected-when-you-pay-by-card

2. Order not received

The website closed for orders at 1pm om 9 June 2023. All orders, for which payment was received, have been dispatched by Hope Fashion prior to ceasing to trade. If Hope Fashion was unable to complete delivery of your order, it will have refunded your payment prior to ceasing to trade. Please allow a few days for the payment to have been transacted.

In the event that you have not received a refund or your order, you will be an unsecured creditor in the Liquidation proceedings. Please see the FAQ ‘I am owed money, but have not received a notice of the liquidation’ for what to do.

If you have paid for goods by credit or debit card and they are not received, you may be able to get your money back by claiming a refund from your card issuer. Please contact your card issuer as soon as you can if this applies to you. Further information, including time limits, is available from Money Helper website at:

https://www.moneyhelper.org.uk/en/everyday-money/credit-and-purchases/how-youre-protected-when-you-pay-by-card

3. Gift Vouchers

Hope Fashion can no longer honour its gift vouchers or any credits held. Any sum due to you for the gift voucher or credit you will rank as an unsecured creditor in the Liquidation proceedings. Please see the FAQ ‘I am owed money, but have not received a notice of the liquidation’ for what to do. In addition, if the voucher was paid for by credit or debit card the purchaser may be able to get the money back by claiming a refund from the card issuer. Please arrange for the card holder to contact their card issuer as soon as you can if this applies. Further information, including time limits, is available from Money Helper website at:

https://www.moneyhelper.org.uk/en/everyday-money/credit-and-purchases/how-youre-protected-when-you-pay-by-card

4. Prospects of creditors being paid in the Liquidation

5. I am owed money, but have not received a notice of the Liquidation

If you are a creditor (owed money by the Company) and have not received notice of the intention to place the Company into Creditors Voluntary Liquidation on 28 June 2023 or the commencement of the Liquidation thereon please email Josie@HarveyInsolvency.co.uk with your details. The following information is required in your email:

Name
Address
Email
Telephone Number
Amount due to you
Evidence of the sum due (ie if a returned item, the postage receipt and details of your order returned)
How do you want us to respond to you, by email/by letter.

6. Who gets paid first in this Liquidation?

The priority of payments in insolvency is stated by legislation under the Insolvency Act 1986. In this matter the order is as follows: -

1. Costs Expenses and costs of the liquidation proceedings.

2. Preferential Creditors Employee (PAYE) wages to £800 and accrued holiday pay.

3. Secondary Preferential Creditors HMRC for VAT, PAYE & employee NIC deductions.

4. Unsecured Creditors All other parties ‘owed’ money by the Company.

7. Will Hope Fashion open again

Efforts to sell the Hope Fashion as a going concern have been unsuccessful to date. It is highly unlikely that Hope Fashion will trade as it has done in the past.

8. How can I get in touch with former people at Hope Fashion

Individual data of staff, Directors and customers of Hope Fashion is protected by GDPR and the liquidator or any other party associated with Hope Fashion are unable to answer these questions. However, the liquidator will pass on details of parties to the former management where sought. It is at the discretion of the recipient whether contact is made. Please email Josie@HarveyInsolvency.co.uk with your request.

9. Hope Fashion Website

From 9 June 2023 no further sales will be made from the website. The website is part of the intangible assets of the Company and are for sale. The website will eventually close or come under the control of a new owner.

10. Liquidation process explained

On 9 June 2023 notices have been sent to the owners (shareholders) and creditors (people who are known to be owed money) that the Company will be liquidated on 28 June 2023.

On 28 June 2023, the Company will be placed into Creditors Voluntary Liquidation by the shareholders. Creditors are anticipated to have given their deemed consent to the appointment of the members liquidator.

In the intervening period to Directors will conduct their duties and prepare for the winding of the Company.

Harveys Insolvency & Turnaround of 2 Old Bath Road, Newbury, Berkshire, RG14 1QL have been engaged to assist the Directors with this process and their Insolvency Practitioner Debi Harvey is anticipated to be appointed Liquidator. Initial contact, where required should be made by email to Josie Badman at Josie@HarveyInsolvency.co.uk .

D J Harvey

Harveys Insolvency & Turnaround Limited

9 June 2023

Harveys Turns 10!

Tue, 23 May 2023 13:06:53 GMT

Today marks ’10 Years in Business’ for Harveys Insolvency & Turnaround and our whole team are delighted to be celebrating such a great milestone!

This could not have been achieved without the many amazing people who refer clients to us; and the accountants, solicitors, and agents who we have had the pleasure of working alongside. Thank you all!

I extend a special thank you to our team of staff who are so vested and committed to our business and to the past staff whole have been part of our journey. Without you all we would not be who we are.

I am proud that over the last 10 years we have gone from strength-to-strength, growing both our team, the services and expertise provided to both our clients and referrers. We have achieved countless business rescues and helped directors and debtors through the most difficult times of their lives.

By choice we have remained a boutique firm, but still a giant in our technical knowledge and strategy capabilities and long may our clients and referrers benefit.

Debi Harvey

Director

SALE OF BUSINESS NOW CLOSED - Well Established Ecommerce Clothing Brand

Tue, 16 May 2023 09:08:22 GMT

Highlights

The company was established in 2016 and are a nationally recognised ecommerce brand, whose target customer is the over 50’s Woman.

o Over £5m in lifetime sales, current average customer spend per transaction £120+

o Wider brand community and social media presence with circa 12k followers on Instagram and weekly “Insta Lives”

o Organic international interest delivering C. 10% of web traffic

o All garments are 100% made in Italy with 30% of the collection using sustainable fabrics/yarns

o Trading from leasehold premises in the Thames Valley

o Loyal workforce

o Customer database (Circa 50k contacts)

o Rated excellent on Trust Pilot, with more than 3,500 reviews, Loyal customer following with low level of returns

o Press recognition, including national broadsheet & tabloid publications

Further Information

Please contact Josie Badman at Harveys Josie@HarveyInsolvency.co.uk to progress your interest.

NO LONGER AVAILABLE - Architectural Lighting Development and Manufacturing Company

debiharvey@harveyinsolvency.co.uk — Thu, 04 May 2023 09:12:14 GMT

Highlights

o Thames Valley based

o Established 2017

o Highly skilled key staff members currently retained

o Specialists in the production of bespoke fixtures, including fibre optic and those to IP68 rating

o Proven track record with projects involving well known national and international names/brands

o Current quotes in the order of £1.1 million

o Projects ranging from £2,000 - £186,000 invoice value

o Potential for growth particularly in the Middle East marketplace

o Tangible assets to include manufacturing and test equipment, internal transport, office furniture and equipment, stock (cost value £158,000) etc

o Turnover Y/E 31st March (circa) 2019: £195,000; 2020: £399,000; 2021: £681,000; 2022: £268,000; 2023: £435,000

Further Information

Offers invited: Immediately

More Information: https://www.lsh.co.uk/assetadvisory/business-sales/architectural-lighting-development-and-manufacturing-company

Please contact Josie Badman at Harveys Josie@HarveyInsolvency.co.uk to progress your interest.

Post Budget Business Brief - April

Thu, 06 Apr 2023 15:21:51 GMT

.

We now finally have a somewhat positive outlook for the UK economy! The Office for Budget Responsibility has predicted inflation dropping to less than 3% by the end of the year. According to the OBRA, a technical recession is no longer on the cards for 2023/4 , however they predict a marginal 0.2% fall in GDP throughout the year. Job vacancies have fallen and filings for insolvency have risen by 6% from January and remain a 1/3 higher than before the pandemic.

The Spring Budget saw a much needed boost to business investments through limitless capital allowances. It remains to be seen if its initial limited three year timeframe will only serve to bring forward capital expenditure planned for future periods.

Not all news is good however, current notable business challenges:

Consumer facing businesses namely in hospitality and leisure, are likely to see a double hit over this year.
A predicted 5.7% drop in household disposable income for the two years to April 2024 therein decimating spending on non-essentials.
The 80% energy price cut support for non-manufacturing businesses from the end of March will mean a doubling in energy costs, despite falling gas prices

Overall, business owners and managers will need to make sure their financial hatches remain secure for the foreseeable future.

SOLD - Manufacturer, installer and retailer of custom built, high end, kitchens, bathrooms and fitted furniture

Fri, 17 Mar 2023 11:55:41 GMT

Assets include plant and machinery, commercial vehicles, office furniture and equipment, stock – retail and raw material, work in progress, future potential order book and associated intellectual property

Highlights

o Located in the Thames Valley

o Established 2008

o Large and loyal customer base, with strong regional reputation synonymous with quality and luxury

o Highly skilled workforce specialising in bespoke product design, manufacture and installation

o Trading from two leasehold premises (showroom and manufacturing)

o Retailer for major UK kitchen brand. Average kitchen sale value £60,000-£200,000

o Turnover (circa): 2019 - £1.6m, 2020 - £1.6m, 2021 - £1.3m, 2022 - £1.7m

Further Information

Offers invited: Immediately

More Information: https://lnkd.in/eprMmuYF

Please contact Josie Badman at Harveys Josie@HarveyInsolvency.co.uk to progress your interest.

SOLD - Digital Content Publisher for Sale

Thu, 01 Dec 2022 14:21:57 GMT

Digital content Publisher for Sale!

An opportunity exists to purchase the tangible and intangible assets of a well established business offering a digital content publishing, marketing and information service to the independent school sector. Working to integrate luxury brands with schools and their parent community for mutual benefit.

Assets available include - Domain name and web content - Telephone number - Database - Notional amount of office furniture & Equipment

Highlights

o Website/Online School Parent Portal

o Established in 2012

o Bolt on opportunity for other website services

o Prospect of rolling out internationally

o Extensive database of 23,500

o Benefit from £1m of investment in development

o Turnover

12 mths to 30.11.22 - £91k

12 mths to 30.11.21 - £159k

12 mths to 30.11.20 - £125k

o No TUPER issues

o Leasehold offices

Further Information

Proof of ability to fund purchase and initial trading costs required for enquiry to proceed along with the enquirer signing a NDA before any further information is provided. To protect the Company’s goodwill and trade, it is proposed that any sale will need to be completed on or around 14 December 2022, and as such, this opportunity is only likely to be available for a short period of time.

Please contact Josie Badman at Harveys Josie@HarveyInsolvency.co.uk to progress your interest.

Oxford & Cotswold Office now open!

debiharvey@harveyinsolvency.co.uk — Fri, 06 May 2022 15:34:28 GMT

New offices in Oxford & Cotswold headed up by our Director Alan Clifton.

We are pleased to share our exciting news and announce the opening of our new Oxford & Cotswold office at Hexagon House, Avenue Four, Witney.

The office is headed up by our Director Alan Clifton, who is a highly experienced and licenced Insolvency Practitioner and has a long standing presence in the area. Alan has said he is ready to meet meet new and old contacts and deliver free initial advice to business and individuals with financial difficulties or issues.

Pandemic adds £173,000 to SMEs debts

debiharvey@harveyinsolvency.co.uk — Thu, 18 Feb 2021 13:48:53 GMT

Pandemic adds £173,000 to SMEs debts

New research from Sage, has highlighted the impact of the Covid-19 pandemic with the average SME business now burdened with £173,000 additional debt per year.

Ahead of the UK’s 2021 Budget and Economic Recovery Plan, the research highlights the tough conditions that will be facing small and medium-sized businesses (SMEs) well into the second half of 2021. The research highlights how the latest lockdown has further divided the outlook of UK SMEs, with one-third worse off than November, one-third in a similar position and one-third better off.

Encouragingly, over half of SMEs believe they have become more efficient for the long-term as a result of the pandemic; but financial challenges continue to bite. The average revenue hit from lockdown during 2021 so far has been -20%, compared to an average -41% over the course of last year.

Over half of SMEs surveyed forecasted that if ‘business as usual’ resumed tomorrow, their productivity would have improved compared to a year ago – with a third recognising digital tools as the most impactful solution to improve efficiencies. There is a clear disparity between appetite and ability to invest for a more productive future – with the greatest priority for SMEs today being investment in technology. 71% of SMEs are not currently in a position to invest at the level they would like to, 42% aren’t able to invest at all. Measures that will drive growth by unlocking these investments, such as financial incentives for technology adoption by SMEs, are desperately needed.

Overall, the data suggests a raft of major challenges facing SMEs over the course of 2021, despite a potential loosening of restrictions over the spring and summer. However, policies to stimulate customer demand are predicted to have a significant positive effect. A VAT cut is supported by 71% of SMEs, with a 12.5% cut in VAT projected to support an additional 11% profit and 13% revenue for business who believe they will benefit. With the right measures in place, SMEs are determined to lead the economic recovery. The majority of businesses that are currently unprofitable expect to return to profit in the next twelve months.

As SMEs approach the beginning of Covid-19 loan repayment periods, polling reveals that just under half have taken out loans as a result of the pandemic, with the most popular forms of borrowing Government-backed loans (12%), borrowing from friends and family (8%) and private business loans from commercial lenders (8%). However, only 63% of businesses are currently confident in their ability to repay these loans. Redundancies among SMEs are also poised to increase dramatically within months, with over a quarter planning to make cuts in the near-term. On average, these businesses expect to reduce the size of their workforce by 19%.

Paul Struthers, MD Sage UK and Ireland, said “The worst economic crisis in three centuries has left a bleak outlook for SMEs. Instead of being a season of new beginnings, spring looks set to further slam the brakes on businesses as support schemes near their end and some loan repayments begin. With a redundancy ‘time bomb’ on the horizon, a significantly increased debt burden is also starting to weigh heavily on the shoulders of businesses desperately trying to recover and invest in their future.’

“But the majority of SMEs can see green shoots through a cut in VAT to unlock untouched household spending, giving SMEs the financial breathing space they need and potentially saving many jobs and livelihoods. This is why Sage is calling for a cut to VAT for goods and services supplied by small and medium businesses throughout the spring and summer of 2021. SMEs will be the driving force behind our recovery – and the economy relies on their success.”

Other major findings from the study include:

Approximately a fifth of SMEs have made redundancies to date, but over a quarter intend to going forward.
Of the 33% of SMEs who are now in a worse financial position, business confidence has worsened most in Wales (72%) and the East Midlands (64%). Yet, businesses in the North East have the second highest (36%) improved positive outlook, following London (38%).
Once furlough and other support packages end, two-thirds of SMEs predict negative consequences such as cutting future hiring plans or cutting the hours of some employees.
The financial and insurances industry (38%) has one of the highest rates for intending to be making redundancies when the furlough scheme ends.The lowest is personal services (8%). The transport and logistics industry expects to make the highest amount of redundancies (25% as a percentage of total workforce), followed by hospitality at 24%.
The hospitality industry has seen the greatest increase in the proportion of revenue they generate via online sales – +33% – well above the average of +16% among all sectors.

Josie wins apprentice of the year

debiharvey@harveyinsolvency.co.uk — Thu, 11 Feb 2021 09:22:39 GMT

Best Apprentice in a Small Business goes to Josie Badman from Harveys Insolvency & Turnaround

Throughout Covid-19 Josie has taken the opportunity of a commercially quiet period to gain a more in-depth knowledge of her industry and expand her knowledge to other areas of delivery. Her comprehension and reasoning are exceptionally good and she is a credit to the firm and the apprenticeship scheme.

Josie is organised and prioritises tasks, she not only does this for her own work but she operates the overall office system. The management of associated tasks are made easier by her intuition and the firm is a better place with her there.

Josie’s ambition continues to build on her success with the apprenticeship scheme and the firm. She has a strong and promising career in the sector with her attitude and approach. She consistently achieves or delivers above that sought of her and Harveys cannot imagine their firm without her.

COVID-19: Will HMRC be flexible when it comes to late tax filings or payments?

debiharvey@harveyinsolvency.co.uk — Wed, 13 Jan 2021 16:59:58 GMT

Will HMRC be flexible when it comes to late tax filings or payments?

If you anticipate a problem in making a tax payment or meeting a deadline, it is normally best to try to communicate this with HMRC as soon as possible, although their resources will inevitably be stretched at the moment so it would be advisable to keep copies of any correspondence or notes of calls. Approaching the matter this way will assist in mitigating penalties down the line.

If you have received an automated penalty or assessment from HMRC then it is usually possible to lodge an appeal within 30 days.An appeal may be allowed where there is a “reasonable excuse” for the default, i.e. the omission arises where the taxpayer is not at fault or they are unable to comply due to circumstances beyond their control. The current Coronavirus situation is unprecedented and therefore may provide a solid ground for appeal in many cases. The key action is to lodge the appeal notice within the time limit with some narrative around the reason for default. Further details can be provided later if need be.

From 1 October 2020 an enhanced Time to Pay service can be used where a tax bill is between £32 and £30,000 provided the taxpayer has no other existing tax debts or payment plans already set up, tax returns are up to date and it is no more than 60 days since the tax was due for payment.

Small businesses encouraged to create plan to pay HMRC debts

debiharvey@harveyinsolvency.co.uk — Mon, 11 Jan 2021 10:23:09 GMT

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Accountants have been increasingly successful in persuading SMEs to re-forecast their financial performance in the second half of 2020, according to the year-end results of the ACCA and The Corporate Finance Network (The CFN) SME Recovery Tracker.

As the year draws to a close, the tracker results have shown consistently high levels of stress and anxiety among entrepreneurs running smaller businesses. The latest figures reveal that 52% are feeling more stressed and anxious than usual and a worrying 9.5% are feeling unable to cope.

In early June, only 27% of smaller businesses said they had completed a re-forecast of finances to take into account the effect of the global pandemic. However, in the following months, the figure rose to 49%, as accountants encouraged clients to take a fresh look at their financial prospects,

But the latest survey of accountants representing 3,805 clients shows worrying signs for SMEs, with only 15% of businesses being fully aware of their funding requirements and financial risk over the next six months.

The tracker also revealed concern from accountants that overwhelmed SMEs may not have made a plan to pay outstanding or deferred tax and VAT bills. The deferral is due to end in March 2021 and many businesses face being hit by unplanned debt.

Claire Bennison, Head of ACCA UK, said ‘It’s clear that many businesses have been in survival mode and deferral of tax and VAT bills has been a key factor.”

‘However, with Self Assessment payments coming in January, the deferral coming to an end in March, and VAT changes for those who trade with the EU, now is the time that they should be speaking to their accountant and planning to set up a payment plan with HMRC, for any outstanding and deferred debts.”

Kirsty McGregor, Founder of The Corporate Finance Network, said :It’s great to see that accountants have been on the case with clients over the past few months and have been successfully encouraging them to do a new financial projection for their business.”

“SMEs need to continue to focus on their future funding needs and their advisors will then be able to provide alternative solutions for their clients. With the Coronavirus Business Interruption Loan Scheme (CBILS) drawing to a close at the end of January 2021, businesses should apply now if they are eligible or speak to their accountants about possible options for other commercial borrowing, Time to Pay arrangements with HMRC or routes to restructure their business and overhaul their strategy.”

2,700 tax returns sent in on Christmas Day

debiharvey@harveyinsolvency.co.uk — Fri, 08 Jan 2021 15:46:47 GMT

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The Self Assessment deadline is on 31 January 2021. Customers can complete their tax returns online ahead of the deadline at a time that suits them. Every year, HMRC sees thousands of customers using the festive period to get their documents in order and complete the task.

On Christmas Day, the peak time for completing tax returns was 14:00 to 14:59, with more than 200 customers pressing send on their online form.

Once Self Assessment customers have completed their 2019 to 2020 tax return, and know how much tax is owed, they can set up their own payment plan to help spread the cost of their tax liabilities, up to the value of £30,000. They can use the self-serve Time to Pay facility to set up monthly direct debits online. Interest will be applied to any outstanding balance from 1 February 2021.

To find out if they are eligible, customers can visit GOV.UK to find out more about the service .

Karl Khan, HMRC ’s Interim Director General for Customer Services, said:

Online Self Assessment means customers can do their tax returns at any time, day or night – even on Christmas Day if they want to.

We’re here to help customers get their tax right, and there’s support available 24/7 like help sheets, webinars and YouTube videos. Search ‘Self Assessment’ on GOV.UK to find out more.

In total, 31,400 customers completed their 2019 to 2020 tax returns between 24 and 26 December:

Christmas Eve: 20,200 tax returns were filed - the peak time for filing was 11:00 to 11:59 when 2,892 returns were received
Christmas Day: 2,700 tax returns were filed - the peak time for filing was 14:00 to 14:59 when 214 returns were received
Boxing Day: 8,500 tax returns were filed - the peak time for filing was 15:00 to 15:59 when 858 returns were received

RETURN OF CROWN PREFERENCE

debiharvey@harveyinsolvency.co.uk — Tue, 05 Jan 2021 11:00:13 GMT

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Reintroduction of UK Crown Preference from 1 December 2020

Since the Enterprise Act 2002 abolished what was known as Crown Preference in the UK, tax claims have ranked as ordinary unsecured debts on insolvency.

In the October 2018 budget it was announced that certain tax debts would be moved back up the insolvency hierarchy to rank as secondary preferential debts. These debts would rank after employees' preferential claims but, importantly, before claims of floating charge holders.

In the March 2020 budget it was announced that these changes, which were originally scheduled to commence from 6 April 2020, would instead take effect from 1 December 2020. Legislation to effect the changes was then included in the Finance Act 2020, and subsequent supporting regulations.

The impact of these changes on domestic and foreign lenders from 1 December 2020 onwards could be dramatic, especially as the change will come into effect at a time of damaged balance sheets and reduced liquidity as a result of the Covid-19 pandemic, and where significant tax arrears are likely to have built up as a result of the various payment deferrals granted by the government to help alleviate financial distress.

What is the current position?

Since 2003, HMRC (the UK tax authority) has been an unsecured creditor in respect of all taxes owed to it on any basis, unless it has separately taken security in individual cases, which is quite rare.

The quid pro quo when tax debts lost their preferential status in 2003 was that the windfall to floating charge holders would be offset by the introduction of the prescribed part. The prescribed part is, simply put, a percentage of floating charge realisations (currently up to a maximum of GBP800,000 in respect of floating charges granted on or after 6 April 2020 or GBP600,000 in respect of those granted earlier) that is set aside and made available to unsecured creditors in priority to floating charge holders.

As a result, other than HMRC’s entitlement to a share in the prescribed part, the holder of any class of charge (whether fixed or floating) currently ranks in priority to HMRC in respect of their pre-existing claims against an insolvent company.

What is changing?

For insolvencies commencing on or after 1 December 2020 secondary preferential status will be granted to any money owed to HMRC relating to certain types of tax which a company has collected on behalf of others. The relevant types are currently VAT, PAYE, employee national insurance contributions, construction industry scheme deductions and student loan repayments. Others can be added by regulation. HMRC’s claim for these taxes will rank in priority to floating charge holders and unsecured creditors but not to ordinary preferential creditors, which include employees in respect of accrued unpaid wages (up to a cap) and holiday pay. Other tax debts which a company owes to HMRC on its own account, such as corporation tax, will still rank as ordinary unsecured claims.

Importantly, the application of the legislation depends on the date on which the insolvency proceeding commences. Neither the date the tax debts were accrued nor the date of the floating charge are taken into account. There is provision for regulations to be made limiting the amounts which will be given preferential status to those referable to a particular period, but no such regulations have yet been made. This means that existing tax debts going back a number of years would be elevated to preferential status, regardless of whether there is a floating charge which pre-dates the debts and/or was entered into before the legislative changes took effect or were even announced. The potential floating charge realisations from existing lending may therefore be affected.

The changes were originally proposed to apply to insolvencies in England, Wales and Scotland only, but at the 2020 budget it was announced that they would also extend to Northern Ireland.

Lenders will also need to be mindful of a parallel legislative change, initially announced in the government’s response to its consultation on Insolvency and Corporate Governance, published on 26 August 2018 and subsequently taking effect on 6 April 2020, whereby the cap on the prescribed part was increased from GBP600,000 to GBP800,000 in respect of floating charges granted on or after 6 April 2020, further reducing recoveries under the floating charge and therefore the value of this security.

Why?

HMRC has stated that the change is intended to protect public funds and, based on its analysis, ensure that there is an estimated GBP185 million increase in taxes reaching the government. However, the proposals have been subject to criticism since they were put forward in the 2018 budget. Notwithstanding such objections, the government has moved forwards with the original proposal.

Who will be affected?

Floating charge holders and unsecured creditors will essentially foot the bill for these taxes, because the prior ranking of HMRC's claim will dilute the realisations available to pay their claims. However, HMRC's claim will still rank behind lenders in respect of their fixed charge realisations and expenses of the administration/liquidation, which will include the fees of the insolvency office holder.

Wrongful Trading – An Update and Analysis of the Recent Government Suspension

Mon, 30 Nov 2020 10:35:55 GMT

These are undoubtedly unusual times, and no doubt, most businesses have been or will be affected by the effects of the lockdown caused by Covid 19. In the past three weeks, the government has announced a plethora of measures designed to protect the economy, companies and workers.

As a part of those measures, the government has recently announced several protective measures to provide some protection to companies and their directors that have been affected by Covid 19. A significant measure was that of the temporary suspension of wrongful trading provisions for a period of three months starting on 01 March 2020. Although the detail has yet to be revealed, it is certainly some cautiously welcome news to directors at these difficult times.

As you may know, Directors can be held liable for wrongful trading by a court pursuant to section 214 and 246ZB of the Insolvency act 1986. This is triggered before the commencement of insolvency of a company (liquidation or administration) a director knew or should have known that there was no reasonable prospect that the company would avoid going to into insolvent liquidation or entering insolvent administration and did not take every step with a view to mitigating and or minimising the potential loss to the company’s creditors.

Although the suspension of the wrongful trading rules is generally welcome, directors should still remain cautious. There remain alternative ways that the wrongful trading rules can be triggered, these are:

Section 172 (3) of the Companies Act 2006; and

Common law duties.

It must be remembered that these go hand in hand, and the standard law duty is preserved by section 172(3). This route to triggering a claim has not been suspended, can be triggered more quickly than those entrenched in the insolvency act and care should be taken that you are not in breach.

The test under the s172(3) trigger is ‘is likely to become insolvent’ rather than ‘no reasonable prospect that the company would avoid going to into insolvent liquidation or entering insolvent administration’ making it less demanding than the wrongful trading trigger.

Further, the duty under s172(3) will be engaged where a director knows or ought to have that the company is or is likely to become insolvent on either the cash flow or balance sheet basis. Whereas under the wrongful trading trigger a company goes into insolvent liquidation if it goes into liquidation at a time when its assets are insufficient for the payments of its debts, other liabilities and the costs of the winding-up; i.e. it is balance sheet insolvent. Once again, the s172(3) trigger is an easier route to trigger a wrongful trading claim.

There are several other related areas that have not been suspended by the government that are of equal importance and these will be discussed in our blog over the coming weeks.

What can you do?

Ensure that you hold regular meetings with directors to discuss the financial position and viability of the company, this of course should be undertaken in line with the governments social distancing recommendations;

Keep a close eye on the company’s financial position by regularly reviewing the state of affairs, keeping accurate records and by speaking to your internal and external accountants.

Keep records and meeting minutes of decisions made and why those decisions have been made, it would be a good idea to ensure that any evidence relied upon in coming to that decision is also kept.

Talk to your creditors, this may well be to simply touch base with them so that they understand the position of the company, can alternative agreement be reached.

Most importantly, you should take appropriate legal, financial and insolvency advice.

*This blog is intended to provide the reader with an understanding of things to consider and should not be relied upon as specific legal advice

1 in 3 consumers plunged into debt

debiharvey@harveyinsolvency.co.uk — Thu, 26 Nov 2020 09:24:24 GMT

One in three people has got into debt since the start of the pandemic

One in three people has got into debt since the start of the pandemic, according to a new report by national poverty charity, Turn2us. The findings also reveal how families with three or more children are twice as likely to run out of money as families with only one child.

The report, which was co-designed with those who have experience of struggling with money, explores the scale and impact of the coronavirus on financial resilience.

Thomas Lawson, Chief Executive at Turn2us, said “The Covid pandemic has had a profound impact on people across the UK. Households are losing their jobs, falling into debt and fighting off the risk of hunger and homelessness.”

“While many who were just about managing before the pandemic are now struggling day-to-day, certain groups have faced a clear and disproportionate affect; women, people with disabilities, larger families, Black and Asian people and those from other minoritized groups and younger people.’

“What is clear now is that financial resilience is at an all time low. Even if a vaccine for Covid-19 becomes available tomorrow, the damage has been done to people’s finances. People have spent their savings and used up their rainy day funds, there is nothing left.”

“The government must act to keep people above water. If people can’t last two weeks without a paycheque, how are they going to last five weeks waiting for Universal Credit? The DWP must build on the existing support schemes and create a long term strategy to support people as this crisis rolls on. We cannot become a nation in which we all survive on credit.”

The findings show that:

One in three people (34%) have had to use some form of debt to get by since March 2020, with 6.4 million (12%) people using multiple forms of debt, such as a credit cards, overdrafts and loans.
Additionally, more than one in ten people (12%) have resorted to missing a bill or debt repayment since March. Before the pandemic only 3% of people were falling behind with credit payments.
Half of all people furloughed since March have had to use forms of debt, compared to just 23% of people who have seen no change to their employment.
More than one in five of us (11 million people) are now running out of money ‘always’ or ‘most of the time’ before the end of the week or month – this is an additional 4.2 million since March.
Employees are now twice as likely to frequently run out of money as they were pre-Covid-19 and self-employed workers now 2.5 times more likely.
More than eight million workers are also currently only able to cope financially for less than a month if they lose their main source of income.
40% of 18-24-year olds have frequently run out of money in the past year, compared to only 8% of people over the age of 55.
A third of people with a disability (33%) run out of money frequently (‘Always’ or ‘Most of the time’), compared to only 18% of people without a disability.
While over a third of people from both Asian and Black ethnic backgrounds frequently run out of money (34%, 36%), only a fifth of people from white ethnic backgrounds experience frequently running out of money (21%).
Nearly a third of women (32%) could also only last a month or less if they lost their main source of income, compared to a quarter of men (25%).
Only 26% of Universal Credit claimants have hardly ever or never run out of money before the end of the week or month within the last year, compared to 72% of people who aren’t claiming income related benefits.
Maintain the £20 per week uplift to Universal Credit to stop at least 700,000 people from being plunged into poverty
End the five-week wait for Universal Credit so people can avoid falling further into debt
Increase funding and guidance for Local Welfare Assistance schemes – so that people don’t have to rely on foodbanks
Increase support for children through the benefits system to reduce the high numbers of children growing up in poverty
Increase support for people with disabilities and apply the £20 uplift to legacy benefits to reduce the high proportion of families with a disabled family member living in poverty

Criminals may have claimed billions through the Bounce Back Loan Scheme

debiharvey@harveyinsolvency.co.uk — Wed, 25 Nov 2020 14:51:35 GMT

Criminals may have claimed billions through the Bounce Back Loan Scheme

An analysis of the government loan scheme for struggling small businesses by the National Audit Office (NAO) has suggested that criminals could have stolen more than £1.9 billion from taxpayers.

The report also found that the Bounce Back Loan Scheme succeeded in quickly supporting small businesses, but the government faces a potential loss of £15 billion to £26 billion based on losses of between 35% and 60%, on the assumption that lending reached £43 billion. But a worst-case scenario puts defaults as high as 80% or £34 billion

The Bounce Back Loan Scheme was announced on 27th April 2020 to quickly provide loans of up to £50,000, or a maximum of 25% of annual turnover, to registered and unregistered small businesses to support their financial health during the COVID-19 pandemic.

The Department for Business, Energy & Industrial Strategy (BEIS) and the British Business Bank (the Bank) expect the Scheme to lend £38 billion to £48 billion by 4th November, substantially exceeding the assumed £18 billion to £26 billion when it launched. As of 6 September, HM Treasury data shows that the Scheme has delivered more than 1.2 million loans to businesses, totalling £36.9 billion. Around 90% of the loans have gone to micro businesses1 with turnover below £632,000. The real estate, professional services and support activities sectors received the largest amount of support – £8.5 billion from 283,000 loans.

The loans are delivered through commercial lenders such as banks and building societies. The Government provides lenders a 100% guarantee against the loans under the Scheme. Businesses are expected to repay the debt in full and failure to do so may negatively affect their credit score and ability to borrow in the future. However, if they do not repay in full, the government will step in and repay the lender. The five largest UK lenders have been responsible for 89% of the value of the loans distributed.

The NAO found that lenders approved loans for existing business customers within 24 to 72 hours but approval times for new customers take substantially longer. Two large lenders that offer loans to new customers estimate that these applications may take between four and 12 weeks because of the high volume received and operational constraints relating to the pandemic.

The government imposed less strict eligibility criteria for the Bounce Back Loan Scheme than other COVID-19 related business loan schemes2, to improve quick access to finance for smaller businesses. It relies on businesses self-certifying application details with limited verification and no credit checks performed by lenders for existing customers. This lower level of checks presents credit risks as it increases the likelihood that loans are made to businesses which will not be able to repay them, leading to losses of taxpayers’ money.

Government also recognises that the decision to provide funds quickly leaves public money exposed to the risk of fraud. A third-party review commissioned by the Bank found that, while some risks can be mitigated, there remains a “very high” level of fraud risk, caused by self-certification, multiple applications, lack of legitimate business, impersonation and organised crime.

The nature of the Scheme places the responsibility for managing fraud risk on the lenders as part of the loan approval process. To support lenders, the Bank established fraud prevention forums to share best practice and aid implementation of additional fraud measures, including a method to prevent duplicate applications. The Bank, alongside BEIS and lenders, intends to start using the information they collect centrally to provide monthly fraud reports from October 2020 onwards. The Bank is currently unable to estimate the overall level of fraud. The Cabinet Office’s Government Fraud Function believes that fraud losses are likely to be significantly above the 0.5% to 5% which is generally estimated for public sector schemes.

As a result of credit and fraud risks, BEIS and the Bank have made a preliminary estimate that 35% to 60% of borrowers may default on the loans, based on losses observed in previous programmes which are most similar to the Scheme. Assuming the Scheme lends £43 billion, this would imply a potential cost to government of £15 billion to £26 billion, but these estimates are highly uncertain. Over the coming months, the extent of losses due to fraud will become clearer, but the full extent of losses, both credit and fraud, will not emerge until the loans are due to start being repaid from 4th May 2021.

Government provides a 100% guarantee to lenders owing to the absence of credit checks, but this reduces the lenders’ incentives to recover money from borrowers. If a borrower does not repay the loan, lenders are still expected to try to recover the loan, but they can claim on the government’s guarantee within “a reasonable time” or if no further payment likely. Any outstanding debt collected by the lender after the guarantee has been claimed should be paid back to the government.

On 24th September, the government announced the extension of the Scheme as part of the Winter Economy Plan. The Scheme will offer borrowers more time and more flexibility for loan repayments under its ‘Pay as you Grow’ option, though details are yet to be announced.

The NAO calls for government to implement a thorough debt-recovery process with lenders and consider how it might better prevent fraud in any future schemes.

Gareth Davies, Head of the NAO said “With concerns that many small businesses might run out of money as a result of the COVID-19 pandemic, government acted decisively to get cash into their hands as quickly as possible.”

“Unfortunately, the cost to the taxpayer has the potential to be very high, if the estimated losses turn out to be correct. Government will need to ensure that robust debt collection and fraud investigation arrangements are in place to minimise the impact of these potential losses to the public purse. It should also take this opportunity to consider now the controls it would put in place to protect against the abuse of any future such schemes.”

A Proud Moment for Harveys!

debiharvey@harveyinsolvency.co.uk — Fri, 23 Oct 2020 14:50:16 GMT

A Proud moment for the firm!

Our Administrator Josie Badman has been made a media star by Newbury College, we are just waiting for her post to go viral now! We are pinning our hopes on her winning Apprentice of the Year 2021 to match her colleague Jake Mongers win in 2019. Well she has scored 84% in her first exam for her AAT so it should be a breeze.

SOLD - Medical Research, Development & Technology

debiharvey@harveyinsolvency.co.uk — Thu, 22 Oct 2020 12:58:16 GMT

Business description

The company has been developing a sensor for monitoring wetness in adult incontinence diapers. The optical sensor was intended to be incorporated inside the diaper, during the diaper manufacturing process. Over a three year period considerable research has been undertaken to develop a bespoke (patent-pending) sensor. Although the sensor on its own is working fine, from our research findings it is not particularly suitable for incorporation inside diapers for diaper wetness monitoring. However, the sensor may have applications in other areas.

There are two ongoing patents on wetness sensing. The first sensor is based on the expansion of a hydrogel to monitor diaper wetness while the second one is based on light transmission through an optical fibre.

Also for sale is a pre-prototype experimental machine for sensor strip manufacture, based on lamination - approximately one strip per minute. Although the lamination process works, the machine requires additional subsystems to produce a complete sensor strip.

Highlights

Two ongoing patents (pending grant) concerning sensors for wetness monitoring in incontinence diapers
A partially built, pre-prototype experimental machine for one of the above stated sensors (fibre optics based) manufacture
Turnover Less than £0.5m
Sector Engineering, Medical, Technology
Region South East England

Interested?

Please contact Debi Harvey at debiharvey@harveyinsolvency.co.uk if you wish to make further enquiries. Statement of interest must be made no later than 21 November 2020.

My company is insolvent What now?

debiharvey@harveyinsolvency.co.uk — Tue, 20 Oct 2020 09:10:35 GMT

My company is insolvent What now?

If your company is insolvent, the main piece of advice is to act as soon as possible

Once you are aware your company is insolvent, you have certain obligations as the director of the company. One of these is ensuring that you do not make the situation of your creditors worse. This means you should not take on additional debt that you know you are unlikely to be able to repay. Something else you must ensure you’re not guilty of is assuming that the assets and any money in the company’s bank account belong to you. Any assets of the company belong to the company, regardless of whether you have put your own money into the business at any stage.

Antecedent Transactions and Wrongful Trading

Antecedent transactions are transactions entered into by a company in the run-up to its insolvency which may be deemed inappropriate or unfair

Antecedent transactions include wrongful trading, fraudulent trading, misfeasance, transactions at undervalue, preference payments and various fraud and misconduct related offences. If this type of behaviour is discovered by the Insolvency Practitioner, action may be taken to recover these funds.

One of the most common antecedent transactions is a ‘preference payment’. Once a company becomes insolvent, directors have a legal duty to act in the best interests of their creditors by minimising their potential losses. All creditors must be treated equally, meaning no favouritism should be shown to anyone. Actively choosing to pay one creditor over another would be making a preference payment. Preference payments are commonly made in the following situations.

Prioritising paying back debts which are underpinned by personal guarantees.
Paying back debt owed to a family member or someone related to the company.
Paying back a certain creditor as you feel a close affinity to them, such as having a long-standing relationship with a certain supplier or wanting to maintain a business relationship with them going forward.

The rules are, however, not completely cut and dried. There may be some instances where making a payment to one company over another may not necessarily be frowned upon.

This would be the case if there were an extraordinarily strong commercial reason for making such a payment. An example of this would be if the payment of one creditor were integral to prolonging the life of the company, thereby increasing the likelihood of payment for the remaining creditors as a result. In this instance there would be no fondness felt for the company in question, merely a genuine desire on your part to extend the viability of your business.

Of vital significance is the dominant intention behind the payment being made. If the company is motivated by a desire to put the creditor in a better position, this will be seen as a preference payment.

The rules surrounding this issue are, however, complex, and the ramifications of making an error are severe. Directors could face personal liability for some or all the company’s debts if a preference payment is found to have been made.

The Insolvency Practitioner will apply to the court for the transaction(s) to be set aside, and action may be taken against the director. If the preference payment was made when the company was insolvent, or caused it to become insolvent, the director could face disqualification.

As well as making preference payments, directors may also face further action if any of the following antecedent transactions can be proven to have occurred:
Directors must be aware of the danger of attempting to protect company assets during insolvency by selling or transferring them away from the business at a reduced rate.
As creditor returns must be maximised during an insolvency procedure, the sale of assets at below market value could be construed as fraudulent trading should this be investigated.

In this instance a liquidator has the power to apply for a court order to reverse any questionable transactions to restore the company to its previous state.

If you are concerned about the sale or transfer of an asset you should call us NOW

Banks may outsource repayment of Bounce Back Loans gone bad

debiharvey@harveyinsolvency.co.uk — Thu, 15 Oct 2020 16:11:29 GMT

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Managing Covid Cashflow

Sun, 11 Oct 2020 08:43:28 GMT

COVID CASHFLOW

Covid Cashflow Impact – When will it end?

It is clear that the government have identified the importance of regional or business sector lockdowns and have, in their latest announcement, granted additional support to business forced to temporarily shut by:

o Subsidising 66% (to a maximum sum of £2,100 pm per employee) of their employees’ wages from 1 November 2020. This subsidy will be reviewed again in January 2021.

o Making available further businesses grants of up to £3,000 a month, paid fortnightly

Economic experts have suggested that this ‘should cushion to blow’ and be ‘welcomed by thousands of small businesses’. However, through October and those that are impacted, but not forced to temporarily shut, will from November only receive a subsidy which in affect is around 20% of the wages costs. We are certainly all facing a tough and uncertain winter with or without the governments help.

Those of you who have soldiered on throughout and not taken any first furlough assistance and now, because of the lack of improvement through the summer, find themselves with tight cashflows and are wish they did, will be feeling the pinch.

If you took your B/CBILS early, it is possible that you did so with a view to being back in work or normality by the late Summer and now your cashflow maybe under pressure. Whilst it is helpful that enforcement and CCJ have been stalled it can also work against you where you are not able to enforce to get paid and it is simply become a long term problem. Bankers and funders certainly need to be reviewing when does a debt become a bad debt they won’t fund.

The government measures put in place are to stop our economy completely collapsing all at once and therein the government itself becoming bankrupt as the collectable taxes becomes less.

The risk now firmly sits on the director’s laps…how long is the right length of time to wait to see what happens? When will my market return? The exemptions from wrongful trading are now at an end, exposing directors to measure risks in a market that no one has ever experienced before.

Insolvency & Turnaround experts look at your financial position, balance sheet and cashflow from a different perspective from other professional advisors, such as your accountant and will quickly be able to establish and establish the justification for continued trading, waiting or seeking additional funding. Sometimes you just need a fresh perspective.

Tap into our expertise at Harveys’ and let us help keep your business stay on its feet during these unprecedented times.

New insolvency provisions...will they help businesses survive COVID-19?

Thu, 25 Jun 2020 15:55:16 GMT

The Government has published a new Corporate Insolvency & Governance Bill which changes the options that are available to struggling businesses. The aim is to help companies to survive, safeguard jobs and protect the economy from the damaging effects of COVID-19. This introduces f ive significant changes to the UK’s insolvency regime. The legislation has seen changes since it came into force in 1986, however these are considered to be the biggest impacting since it was written.

The changes fall into two categories; temporary measures & permanent changes.

Temporary Changes:

The suspension of the wrongful trading provisions of the Insolvency Act by introducing an assumption that the directors are not responsible for any worsening of their company’s position during the pandemic.

Restricting the right of creditors to petition for companies to be wound up, where debts have not been paid due to the pandemic. Before the 30 September 2020 no statutory demands may be served & there are restrictions on winding up petitions. This period may be extended.

These provisions will apply for one month after the Bill becomes law, whichever is later.

Permanent changes:

A new moratorium is to become available to struggling companies which will behave like the administration moratorium, initially lasting 20 days, which can be extended for up to 12 months & is overseen by an insolvency practitioner acting as ‘monitor’. It is envisaged that it will not end with an insolvent event. This replaces the old CVA moratorium which was rarely used because of flaws in its writing which expose the Insolvency Practitioner to liability. Whilst on the surface this appears to be a viable alternative, the inception required court or creditor applications and its continuation are likely to prove cost preclusive for many OMB’s who find themselves in financial difficulty.

Supplier termination clauses to be prohibited , which results in suppliers being restricted from declining insolvent companies vital supplies as long as new supplies are paid for.

A new restructuring plan procedure is introduced , replacing the existing ‘scheme of arrangement’ provisions in the Companies Act. It is a largely Court-based procedure, drawing on the US Chapter 11 procedure.

The moratorium provisions were consulted on in 2016 & largely welcomed by professionals, so much of these changes were already in hand. Whilst this is still in the stages of being brought into legislation, it is anticipated that it will fully come into force by early July 2020. A number of the provisions are retrospective & directors, creditors and their advisors need to consider these when weighing up the options available.

Only time will tell us whether the changes are sufficient to help struggling businesses to survive or whether they will become obsolete reminders of the pandemic.

All types & sizes of businesses can get into financial difficulties. The restructuring & insolvency options are complex as they need to deal with the users' differing needs. These new provisions create an additional option which our specialist at Harveys can advise upon & help business owners navigate their way to the best outcome.

For impartial, in-depth professional advice please call us on 01635 770941. We are here to help you .

Top 3 Uses For an Insolvency Practitioner

Tue, 26 May 2020 14:49:39 GMT

Make the most of Harveys' Insolvency Services

Your financial difficulties don't need to take over your life, with Harveys we can help get you out of trouble so you can focus on the things that matter most to you. Here are some of the ways we can help your business grow.

1. Rescue Services

Don't wait until it's too late, we can help turn your business around with our wide range of rescue services.

2. Closing Services

We can help you close down your business in a way that will appease your creditors, keep you legally compliant, and cause as little upset as possible. We have a wide range of closing services that are fit for all circumstances.

3. Personal & Sole Trader Services

Personal and Sole Trader debt are seen as the same in the eyes of the law. At Harveys we help sole traders get out of financial difficulties with a variety of different services.

How Can Harveys Insolvency Help You?

Fri, 22 May 2020 14:54:56 GMT

Don't let financial difficulties get on top of you, Harveys are here to help...

If you are a business that is struggling financially or getting pressure from creditors to pay up then Harveys has the solution for you. We work alongside each and every one of our clients to find a solution that works best for them. We have a wide range of services from turnaround and rescue services to closing and insolvency services. We will use our team of expert insolvency practitioners to best advise you on your options then help you carry out your resolution in a way that looks after all parties involved.

Get in touch with Harveys Insolvency & Turnaround Specialists today to find out how we can help your business close in a fully compliant way or turnaround your operations to give your business a new lease of life.

Harveys Insolvency & Turnaround

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