The introduction into law of the CIGA on the 26th June 2020 represents the most significant reforms to the UK insolvency and restructuring framework for nearly two decades.
A major reorganisation and enhancement of UK Insolvency legislation was already being considered long before Coronavirus became a familiar term and the consultation process around the shape of new legislation has in fact been launched only recently within the Insolvency, Turnaround and Financing business community. However, as a responsive need at the outset of Lockdown in the UK, the Government announced some surprising temporary measures that were all intended to minimise the commercial impact of the lockdown and support businesses that might otherwise feel compelled to shut up shop permanently when faced with the challenges it presents. The measures were [...]
We are aware that following the COVID-19 pandemic the business world has changed, with many saying it has changed forever. The normal working week for many businesses now includes remote working, in particular operating from home and juggling many other demands in the process. As far as businesses are concerned, one of the overriding concerns is the possibility of a world recession and, if that is the case, how long it will last and how damaging the impact is likely to be. The reality is, no one really knows. The only certainty is that one way or another, the last [...]
Update for Coronavirus Job Retention Scheme To ensure we are providing you with as much support and information regarding the Government’s Coronavirus initiatives, here are the latest updates regarding the Coronavirus Job Retention Scheme (CJRS) for furloughed employees. Chancellor Rishi Sunak in yesterday’s briefing confirmed that all furloughed payments will be paid by the end of April, with all applications to be made online through a government portal, which is set to open on the 20th April. Applications should be made by whoever operates your PAYE scheme, either yourself as the employer or the third party who does it on [...]
There are a number of warning signs that a company is in financial distress and action is required. Insolvency isn’t always avoidable but the chances of doing so are always improved if action is taken early and rapidly to give the company the greatest opportunity of trading its way out of difficulty. The warning signs can be singular but usually accumulate in a financially poisonous cocktail and it is important that directors and company accountants are prepared to recognise them. Creditor Action Many companies and businesses occasionally miss payments; however, if this begins to occur frequently, it suggests that a [...]
If your employer is insolvent and enters Liquidation, Administration or a Company Voluntary Arrangement (CVA), it will probably have an impact on your employment status. Your first concerns are likely to be around whether you still have a job, whether you will still be paid and how to make sure your rights are protected. The first thing to have in mind is that all employees have special rights. If your employer is unable to pay you because they have become insolvent, then you are entitled to make a claim on the National Insurance Fund (NIF) - a process administered by [...]