Small business owners who duck out of repaying Covid debt face ban

Originally written by Timothy Adler on Small Business Small business owners who wind up their companies to avoid having to repay Covid debt could be banned from being company directors. Owner-directors found guilty of abusing insolvency procedures to duck out of having to repay Covid debt taken out by their small business could be banned for up to 15 years. About 1.5m small Small business owners who duck out of repaying Covid debt face ban

Small business owners who duck out of repaying Covid debt face ban

Originally written by Timothy Adler on Small Business

Small business owners who wind up their companies to avoid having to repay Covid debt could be banned from being company directors.

Owner-directors found guilty of abusing insolvency procedures to duck out of having to repay Covid debt taken out by their small business could be banned for up to 15 years.

About 1.5m small businesses have taken out Bounce Back Loans through a scheme that offered up to £50,000 interest free for a year.

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And the new beefed-up Insolvency Service will be able to investigate retrospectively to already wound-up companies.

The government promised to clamp down on any potential fraud in repaying emergency Covid-19 loans in the Budget earlier this year.

Officials are keen to sew up the insolvency loophole to curb any losses to the taxpayer as banks start to charge interest or seek to recoup loans once the repayment holidays on the government-backed schemes end.

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Dissolution via strike-off or voluntary liquidation is only supposed to be used by a small business without a prior insolvency and only when the company no longer has any assets, has not been trading, and where creditors have been informed.

However, the dissolution process is sometimes quietly abused by directors who simply wind up their companies without putting them through an insolvency in order to drop liabilities and escape investigation.

The new measures also prevent directors of dissolved companies from setting up a near identical business.

The government said the process, which often leaves customers and creditors, including HMRC out of pocket, would “no longer be able to be used as a method of fraudulently avoiding repayment of government-backed loans given to businesses to support them during the coronavirus pandemic”.

“Rogue directors who exploited the legal loophole that allowed them to deliberately run their companies into the ground to avoid paying their staff, suppliers, taxes or taxpayer-backed loans will have to watch their backs, because this new legislation is closing that door firmly and permanently,” business minister Kwasi Kwarteng told the Times.

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Small business owners who duck out of repaying Covid debt face ban

Source : UK Small Businesses More   

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As a workshop manager or self-employed craftsman, you may be looking for ways to improve the efficiency of your workshop to meet customer timescales and targets. Read more: Top Tips to Improve Workshop Efficiency  

Top Tips to Improve Workshop Efficiency   

As a workshop manager or self-employed craftsman, you may be looking for ways to improve the efficiency of your workshop to meet customer timescales and targets.

With the tools and machinery being the wheels of the workshop’s vehicle, the quality and maintenance of these is so important in ensuring your workshop runs smoothly. Calderbrook Woodworking Machinery, as suppliers of new and used woodworking machinery, offer some of their top tips for improving your workshop efficiency.

Top Quality Tools

With the right tools to hand you are halfway to an efficiently ran workshop. Any good and well-run workshop will have the appropriate tools to hand to complete any job. Tools and machinery will determine both your time efficiency and product quality. As they say, a good tool improves the way you work. Establishing a workshop complete with the best tools for the job(s) required is important in seeing both your productivity increase but also your quality. Afterall working with old, rusty tools and run-down machines will affect both the outcome and the motivation to work.

Workshop Maintenance

Broken workshop tools and machinery costs could make your eyes water. The best way to keep yourself from spending thousands, losing machinery, and slowing down your processes, is to ensure all machinery and tools within the workshop are well maintained. Whether this be a daily clean, or frequent service, taking extra precaution will expand the life span of your machinery and provide you with years of service.

On top of this, a clean, well-kept workshop space is vital in speeding up processes and avoiding accidents or injuries. When you’re doing any job, it will be much easier to locate certain tools and small pieces of equipment, when the workshop is free from clutter and looking spick and span.

Well Managed Staff

When managing a workshop, your staff are vital in keeping the day-to-day tasks on track.

Ask yourself:

  • Is everyone aware of the safety procedures?
  • Are they all trained on every running machine?
  • Will someone be capable of taking over if a sickness or grief removes a member of your team from the workshop for a few days?
  • How can you avoid accidents and injuries within the workshop?

The workshop and your staff will operate just like your machines, keeping it well oiled (well managed) increases the efficiency of the workshop, benefitting both staff, customers, and the company as a whole.

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Top Tips to Improve Workshop Efficiency  

Source : Business Matters More   

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