Published: 7th January 2019
When business liabilities threaten to merge with your personal finances you need an expert on hand to clarify your position and provide sage advice on how you should proceed. Our experts are proficient in understanding the personal implications, both financial and legal, of running a limited company as well as the potential fallout following voluntary or compulsory liquidation.
Our specialist advisory team comprise licensed insolvency practitioners and seasoned restructuring and turnaround experts, who can conduct an in-depth director liability review of your company’s position and elucidate which liabilities are the ultimate responsibility of the company, its directors, and highlight those which have the possibility to shift in the event of the company ceasing to trade. Whether the intention is for the business to continue operating or if it is heading towards liquidation, being armed with the knowledge and information which can provided by a director liability review is extremely valuable when it comes to mitigating your personal exposure.
Providing this support ahead of time, a director liability review ensures you know exactly where you stand financially and how future decisions could alter your existing position allowing you to make informed decisions about the direction of the company. We will outline your position with HMRC, help you understand personal liability notices, and ascertain whether you have any personal liabilities in the form of unpaid PAYE or NICs. We can analyse your current level of personal exposure and give guidance on how to avoid making preferential payments, transactions at undervalue, or any other acts of misfeasance in an attempt to lessen this.
The review can help you appreciate the implications of having an overdrawn directors’ loan, taking unlawful dividends, and how these may be treated as income and taxed accordingly if you are unable to bring these up to date, as well as serving as a useful document when it comes to assisting your future ambitions for the company, or your anticipated involvement in any other limited company going forwards.
Alongside providing advice on the effects of a crystallised personal guarantee, our extensive service offering allows various personal insolvency options such as IVAs or bankruptcy to be explored should your personal position prevent you from meeting this liability once you become personally responsible.