All @ AWEB for information and to save future queries especially from Anon the changes to creditors rights on insolvency are below
With remarkably good timing, in new insolvency processes commenced after 1st December, HMRC will be granted a massive change to their rights in insolvency, with all VAT, PAYE and NIC liabilities, being given Preferential status!
In addition to the personal liability that may already fall on directors for some HMRC debts, this will also potentially expose them to increased claims under Personal Guarantees provided to a bank.
FA simplified summary of the new order of priority is as follows:
Fixed Charge Creditors (mortgage or charge over specific assets)
HMRC Preferential debts (VAT / PAYE Etc)
Floating Charge Creditors (usually a bank)
The unsecured creditors have moved further down the list, but the change also reduces the value of a floating charge, most often held by a bank.
If the bank’s security is worth less, the potential for an increased liability falling upon directors under personal guarantees given to the bank also increases.
Have a nice day