When your business can’t pay its bills
What I’ve done is broken the answer down into 19 questions that I go through in this interview.
At the start of my career in the early 2000s small to medium sized enterprise (SME) directors really only had one option – their accountant recommended an immediate voluntary administration when a business became insolvent. Since then we have the safe harbour from insolvent trading commencing in 2017, small business restructuring commencing in 2021 and a long term move away from voluntary administration. And also there is the prepack insolvency arrangement – it isn’t yet universally accepted but it is practically accepted anyway.
So you now have 4 options for an insolvent SME to undertake a restructure:
- Voluntary Administration
- Small Business Restructuring Process
- Safe harbour from insolvent trading
- Pre-pack insolvency arrangement
With the permission of the Tax Talks Podcast, the interview can be accessed at the following links: