A Government press release published today, confirms that temporary measures brought in to support businesses from insolvency during the pandemic will be phased out from 1 October 2021.
The full release can be found here.
It appears that the temporary restrictions on statutory demands and winding-up petitions will not be extended beyond 30 September 2021.
Instead, the Government will introduce new legislation (through a Statutory Instrument covering England, Scotland and Wales) that will:
– Protect businesses from creditors insisting on repayment of relatively small debts by temporarily raising the current debt threshold for a winding-up petition to £10,000 or more.
– Require creditors to seek proposals for payment from a debtor business, giving them 21 days for a response before they can proceed with winding up action.
The new measures will be in force until 31 March 2022.
If your business is currently taking advantage of the Coronavirus Job Retention Scheme, another key date is the 30th September 2021, when the furlough scheme officially comes to an end. Claims for September must be submitted by 14 October 2021 and any amendments must be made by 28 October 2021.
As always, our partners are available for a chat or meeting to discuss the above and indeed any matters that concern the well-being of your clients.
Unlike many of our competitors, we triage the client’s needs and will always endeavour to save the business if at all possible. This can be done on an informal basis or through a turnaround procedure.
With over 100 years of combined experience, we have built up a large network of ABLs and other financial institutions who are ready and available to help those businesses with a good trading history and who have a healthy future but maybe suffering temporary cash flow difficulties because of the pandemic.
The key to turning any business around is to seek advice as soon as possible.
Charles, Stephen and Allan