Economy
Prepare for the zombie company storm
Directors and business owners should expect to see the beginning of the pandemic fallout during the second half of 2022. Currently, Britain’s economy is operating with a dangerously high number of zombies, insolvent companies that: Earn just enough money to continue trading Are unable to pay off their debt This miserable and worrisome situation is…
Read MoreSunak’s Fraud Squad targets Bounce Back Loan abuse
Last week, the Government launched ‘The Fraud Squad.’ Sounds a bit like a blockbuster movie…but it’s actually a serious venture led by Chancellor Rishi Sunak. Initially, the primary objective is to investigate the billions the Government lost through fraud that took place during the height of the pandemic. Experts claim that company directors lost, squandered,…
Read MoreConsumers warned over pre-paid energy scams
Britain’s leading fraud prevention service, Cifas, has warned gas and electricity customers to avoid pre-paid energy scams disguised as discounted offers. The scams have already affected over 188,000 victims, including British Gas, EDF Energy, E.ON, Scottish Power, and SSE customers. It’s no secret the cost of living is increasing at a startling rate. Many UK…
Read MoreEnd of temporary insolvency measures
Last week, the Government withdrew the temporary insolvency measures introduced two years earlier to support businesses during the Covid-19 pandemic. Creditors could obtain winding-up petitions under the temporary legislation (enacted as part of the Corporate Insolvency and Governance Act 2020). However, the debt threshold for winding-up petitions increased to £10,000 and creditors were compelled to:…
Read MoreLaws for winding up orders need more clarity
Entrepreneurial small business owners should be overjoyed with Government plans to increase the debt threshold for winding-up petitions to £10,000. The move is in harmony with new protections and laws designed to support businesses. Temporary measures introduced last year under CIGA 2020 will be replaced from 1 October to 31 March 2022. Subsequently, more debtor-friendly…
Read MoreDirectors guilty of BBL abuse face disqualification
A few months back, we protested the Insolvency Service’s decision to chase the owners of failed businesses for failing to repay Bounce Back Loans. However, the findings of a report by the House of Commons public accounts committee suggest the agency’s strategy may be appropriate after all. To help struggling small-to-medium enterprises (SMEs) during the…
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