What is Company Voluntary Administration?


Company Voluntary Administration, or CVA, is a legal agreement settled between a company and its creditors.

Essentially, what CVA does is it helps companies repay their debt without going into to administration, thus avoiding declaring bankruptcy. The company will pay debts over a set period of time.

The agreement between the two parties is based on having a vested interest in preserving the company, rebuilding sales and profits and then, of course, the company will repay the creditors over the set period.

It must be the case that 75 per cent of creditors need to be in agreement and in full support of the CVA.

Once the agreement has been made, the company can carry on trading as they usually would, the directors can conduct their usual duties and the personal guarantees usually will not get called in, which will give the business the chance to survive.

Who can get a CVA?

A CVA can only be proposed if a company is insolvent or contingently insolvent. It will be monitored by a supervisor who will be a licensed insolvency practitioner. The arrangement will usually last between 3 to 5 years, depending on a number of factors. It is therefore

Don’t be complacent over Inheritance Tax warn accountants


Tax experts are reminding families and individuals not to neglect the importance of Inheritance Tax (IHT) planning, despite changes to the way it is taxed.

According to the latest data from HM Revenue & Customs (HMRC), the Treasury collected approximately £5.3 billion in IHT last year – up 13 per cent on the amount collected in 2016.

News of the rise comes just months after the residence nil rate band (RNRB) – an additional tax-free IHT allowance available to individuals and families who wish to pass property to their direct lineal descendants in their Wills – was increased from £100,000 to £125,000.

Peter McMahon, Tax Partner at Grunberg & Co said: “Individuals in England and Wales will normally incur IHT at a rate of 40 per cent on all estates valued at above £325,000. But by taking advantage of the RNRB, individuals can effectively increase this tax-free threshold to £450,000 if they intend to pass on property to children or grandchildren in their Wills,” Justin said.

“The new changes to the RNRB are even better news for married couples and those who are in a civil partnership.

“This is because such individuals can combine their allowances – meaning that couples

consultation to bring change to IR 35


Off-payroll working has recently attracted headlines in a number of high profile tribunal decisions.

The most notably of these is Christa Ackroyd, the BBC – “Look North” presenter who was recently found to be operating inside IR 35 and ordered to pay over £400,000 in tax and National Insurance Contributions (NICs).

Further headlines followed when other BBC talent similarly found themselves on the payroll. With this background, it might reasonably be supposed that the Government’s consultation issued on 18th May, “Off-payroll working in the private sector”, is a further development of these apparently connected stories – it is of course, although curiously, the Ackroyd case and the BBC’s decision are unconnected.

Off-payroll working simply describes those workers who are not on the PAYE payroll. This is typically because they are engaged through their own personal service company (PSC). The nature of the relationship between the worker provided by the PSC and the engaging client may be identical to that of an employee engaged under a contract of employment, yet the resulting tax may be markedly different. This has long been recognised as unfair and IR 35 (more formally ‘the intermediaries’ legislation’) has been in place since 2000 to address

When would you use bridging finance


Bridging finance is becoming a more popular source of finance for those looking to raise money for a property purchase under a tight deadline.

The bridging industry has increased from £1 billion to £7 billion since 2011 and there are currently around 40 lenders in the industry. There are different circumstances in which you would decide to use bridging finance and we take a look at some of the most popular reasons for doing so.

Bridging loans explained

Bridging finance is a type of short-term loan that can allows the borrower to access money quickly and is most commonly used by property owners, developers and investors in order to be able to refurbish a property, or to move into a new property whilst waiting for their current property to be sold.

Customers and businesses can borrow between £50,000 to £25 million with different rates and loans to value available for different circumstances.

Many loan providers will also consider people even if their credit score is less than perfect, since you are using property as collateral and leveraging its value in order to borrow finance, explains Tiger Bridging.

If you are property developer

Bridging finance can be an excellent option if

Using equity release to fund your retirement 


Funding your retirement is not as easy as it used to be. With workplace pensions on the brink and some of the worst in years, and the increasing living costs in the UK, it can be hard for senior citizens to afford a quality lifestyle.

In comes as no surprise that many pensioners will consider using equity release as a way to extract money from their homes, something that is a £3 billion industry in the UK each year. We investigate below.

How Equity Release Works

Equity release allows homeowners over 55 to release equity and income that is tied up in their home. After paying off most of their mortgage, you can receive up to 35% of the property’s value in one lump sum and tax free. Equity release providers are able to recover their funds by having a stake in your property so that they can claim their share when you die and they gain by the increase in the property’s value over time. (Source: Access Equity Release)

To be eligible, you must have paid off a significant amount of your first mortgage, be over 55 years of age and your house is worth a certain minimum amount

Could debt settlement get your small business out of the debt trap?


Many people that start their own small business start off with very high hopes and a real feel of excitement.

This is not surprising, as having your own business means the possibilities are endless when it comes to financial freedom, career options, and quality of life. However, some people do find that their business quickly start accruing debt and is some cases this debt can get out of hand.

If you have a lot of debt and your small business is struggling as a result, there are various options you can consider to try and relieve the situation. If you leave things unattended, the debt problem will continue to spiral. This could result in you going out of business altogether. This is why you need to ensure you take action to sort out your business debts if they are causing a massive problem for you and your business.

How debt settlement may help

 There are various solutions you can look at if you have a huge amount of unmanageable small business debts and one of the options is debt settlement. This is where you negotiate with your creditors and make a reduced payment on the amount you owe after

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