The high-profile collapse of Carillion is a timely reminder that financial failure can affect businesses in all sorts of ways. The ‘domino effect’, where the collapse of one company pulls down others, is a real phenomenon. Some businesses concentrate all of their risk management on the creditworthiness of their customers and fail to appreciate the potential impact of supply chain failure.
As many will be aware, the wage increase from The National Living Wage (NLW) announced in the Chancellor’s Summer Budget came into force this April. This brought into effect a £7.20 per hour (£9.15 in London) minimum wage for employees aged over 25. The NLW is also expected to rise over the coming years, exceeding £9 per hour by April 2020.
Andrew Tate, Kreston Reeves Restructuring Partner is Vice President of the insolvency Trade Body R3, soon to be President, and was asked to comment on BHS filing for administration as their last-ditch rescue talks fail.
Entrepreneurs’ relief is a tax relief given to shareholders of a company being wound up, provided that they meet basic criteria. Money distributed to the shareholders is taxed at 10% up to a lifetime limit of £10 million.
Having been briefly interviewed on Radio 4s “You and Yours” programme earlier today (14/09/2015), I thought that it may be helpful to summarise a few main principles which all businesses, not only insolvent ones, need to bear in mind. This is not a comprehensive list of principles but a summary of some interesting facts which I think are critically important. The Information Commissioners Office website is full of helpful information.
We are pleased to announce that Andrew Tate, Restructuring Partner at Kreston Reeves, has been elected to take the reins as President of R3, the trade association for insolvency practitioners, in 2016.