Can't Afford to Pay Staff
Not being able to pay your staff their wages on payday could spell disaster for your business. Without a workforce you could see operations rapidly grinding to a halt, preventing you taking on any new work and struggling to fulfil current orders. For the ongoing viability of your business, having staff you can rely upon to carry out the work required is vital. In order for you to be able to rely on them, they in turn must be able to rely on you to be a good employer, which includes fulfilling your duty of paying their wages in full and on time.
You should always make it a priority to ensure your staff are paid; however, if you find that this is not going to be possible, here is what you should do.
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You should always make it a priority to ensure your staff are paid; however, if you find that this is not going to be possible, here is what you should do.
Other Products and Services from Real Business Rescue
Closing a Company with Debts
As the director of a company which is failing due to unmanageable amounts of debt, you may be considering liquidation in order to start a new business, without the worry of outstanding debt, poor reputation and unhealthy relationships with creditors.
You may have tried to rescue your business by seeking alternative finance such as invoice factoring to meet immediate cash liabilities, sourcing investment to raise capital or applying for a bank loan/overdraft. Due to debt levels and low cash flow, this may be difficult to secure as your business poses a higher risk of non-payment.
In the event of liquidating a company with debts and establishing a new company, there are a few restrictions which should be taken into consideration. This is to prevent company directors starting a new company in order to escape debt and the consequences. A new company which emerges from the liquidation of an old company with the same assets and typically the same directors is known as a phoenix company.
You may have tried to rescue your business by seeking alternative finance such as invoice factoring to meet immediate cash liabilities, sourcing investment to raise capital or applying for a bank loan/overdraft. Due to debt levels and low cash flow, this may be difficult to secure as your business poses a higher risk of non-payment.
In the event of liquidating a company with debts and establishing a new company, there are a few restrictions which should be taken into consideration. This is to prevent company directors starting a new company in order to escape debt and the consequences. A new company which emerges from the liquidation of an old company with the same assets and typically the same directors is known as a phoenix company.
Time to Pay Arrangements
As a response to the escalating coronavirus crisis the government has announced a raft of measures aimed at supporting businesses across the country as they deal with the ongoing Covid-19 outbreak and the knock-on effect to their business. As part of a support package announced during the March 2020 budget, it was confirmed that the existing HMRC Time to Pay scheme will be extended to give more companies a helping hand when it comes to managing their tax affairs. The Time to Pay arrangement gives companies additional breathing space during which to settle their existing HMRC liabilities, something which could be invaluable in the current climate while businesses adjust to the unexpected and rapidly changing circumstances.
Expertise
A multi-disciplinary and partner-led practice, RBR Advisory offers a full suite of professional solutions to facilitate strategic change and add value. Engaged by business owners, lenders, law firms, and other key stakeholders we provide corporate and commercial advice in times of business growth as well as distress.
Real Business Rescue
Head Office 340, Deansgate, Manchester, M3 4LY, United Kingdom
Real Business Rescue specialise in a wide variety of services including company debts, liquidation and closure, restructuring and rescue and specialist business advisory for a wide variety of industries and sectors throughout the UK. We cater for businesses and organisations that require assistance with their insolvency issues during COVID-19 and can offer expert advice across a broad range of professional services.