Truro City FC is the latest club to be targeted by HMRC for unpaid taxes. The Winding Up Petition is due to be heard in the High Court on 31st October. As the Petition has been advertised, the club’s bank account will have been frozen, adding to its woes.
Despite the sunshine, the high street still has some dark clouds hanging over it – in a recent survey by the insolvency trade body, R3, 10% of retailers believe they will enter Administration within a year. This begs the question, should they be calling it a day now rather than facing allegations of trading whilst insolvent in 12 months time? The September quarter day has just passed, so watch this space!
Recent research commissioned by the Association of Business Recovery Professionals indicates that 1.8 million people in the UK went into debt to pay for their summer holiday this year. The poll revealed that holiday-makers took on additional debt of £1,581 on average (an increase of 40% on last year) which will take about nine months to repay compared to seven months in 2010. Given current inflationary pressures, tax increases, etc, the results of the poll should hardly come as a surprise!
A Director of three companies has been sentenced at Leicester Crown Court to six years in jail after pleading guilty to three counts of fraudulent trading. In addition he was disqualified from acting as a Director of a limited company for ten years. The three companies were eventually liquidated leaving behind liabilities of £1.4 million. The Director fled the UK but was eventually arrested in Turkey in May 2011 for alleged offences committed there. He subsequently voluntarily returned to the UK.
The Insolvency Service is getting tougher on sole traders and partners whose businesses fold owing significant amounts of tax. In the year to 31 March 2011, it obtained 443 Bankruptcy Restriction Orders and Undertakings (an increase of 21% on the previous year) and in the majority of cases, HMRC was the predominant creditor. Individuals can be subject to a Restriction Order for a maximum of fifteen years, meaning amongst other things, that they cannot be involved in the management of a limited company for that period.
The latest figures for August from the British Retail Consortium show that, by and large, retailers are continuing to struggle. Food, unsurprisingly held up well, but non-food such furniture and homewares was down on August 2010. Clearly, consumers are continuing to rein in their discretionary spending as worries continue over inflation and the squeeze on personal finances, which some are predicting will continue for a decade!