Most important thing is to match the Insolvency Practitioner to the assignment. Consideration ssuch as complexity, assets involved and the IP's reputation.
Avoid IPs with glossy websites and who offer to solve everything for a limited fee.
All the advice offered seems quite fair. Is there a business worth saving / capable of being turned around / what are the business owners prepared to invest in order to make it work?
Given the failure rate of pubs and wine bars (high), If there is a need to appoint an Insolvency Practitioner do ensure that you seek someone with a decent reputation.
Administration Dividend It's a Bad Debt recovered. Follow your usual process where a debt written off has been recovered i.e. credit bad debt account debit cash.
Dear Insolvency Trainee Strongly suggest that you speak to a member of your tax team who has dealt with and understands corporate tax issues and who additionally understands the point regarding creation of differing tax points (due to the administration) and that of goodwill.
You may also wish to ask someone in your firm regarding what goodwill is, how it is created and how it is accounted for viz FRSs. This will be useful for you as a trainee when dealing with future administration sales.
CGT If a CGT liability has arisen post making of the Administration Order being made then it is my understanding that it is treated as an expense of the Administration.
It will be for the Administrator to account for it in his return on behalf of the company.
The value of the goodwill would normally be expressed in the sale agreement.
The directors stump up the funds to pay for the liquidation process of the company via creditors' voluntary liquidation route (anything from £5,000 up to £10,000 depending on the complexity of the thing).
or
Write to creditors advising company ceased trading and invite a creditor to wind up the company compulsorily.
In either case the directors conduct will be subject to scrutiny.
My answers
Fame
Hi
I have used fame and it seems to pick up known published data from Companies House and apply some accounting ratios etc.
It saves some time but it is historic information from which the accounting ratios are derived...how relevant is in my opinion open to question.
Regards
Red Flag & Tracker
Crude method to look at client listings to see who might be a potential insolvency client of the future.
I can't see the benefit to accounants (who are not eithe rTenon or Begbies) in allowing this.
Perhaps I am just synical but beware Greeks bearing gifts!
Reputation
Most important thing is to match the Insolvency Practitioner to the assignment. Consideration ssuch as complexity, assets involved and the IP's reputation.
Avoid IPs with glossy websites and who offer to solve everything for a limited fee.
Distressed Wine Bar ? Pub
All the advice offered seems quite fair. Is there a business worth saving / capable of being turned around / what are the business owners prepared to invest in order to make it work?
Given the failure rate of pubs and wine bars (high), If there is a need to appoint an Insolvency Practitioner do ensure that you seek someone with a decent reputation.
Straight Forward
Companies House Direct - small cost involved...few pounds.
Administration Dividend
It's a Bad Debt recovered. Follow your usual process where a debt written off has been recovered i.e. credit bad debt account debit cash.
Dear Insolvency Trainee
Strongly suggest that you speak to a member of your tax team who has dealt with and understands corporate tax issues and who additionally understands the point regarding creation of differing tax points (due to the administration) and that of goodwill.
You may also wish to ask someone in your firm regarding what goodwill is, how it is created and how it is accounted for viz FRSs. This will be useful for you as a trainee when dealing with future administration sales.
CGT
If a CGT liability has arisen post making of the Administration Order being made then it is my understanding that it is treated as an expense of the Administration.
It will be for the Administrator to account for it in his return on behalf of the company.
The value of the goodwill would normally be expressed in the sale agreement.
Gerald's Comment
The Insolvency Service, which instigates & oversees disqualification proceedings, looks for black and white issues.
It does not necessarily follow that a de minimus level of assets or liabilities is the main criteria involved for scruntinizing misfeasant behavior.
Illegal dividends is not particularly difficult to establish and recoup as a Liquidator enabling more detailed enquiries to be undertaken.
Rarely does a can of worms only have one worm as its occupant!
Advice
Two options:
The directors stump up the funds to pay for the liquidation process of the company via creditors' voluntary liquidation route (anything from £5,000 up to £10,000 depending on the complexity of the thing).
or
Write to creditors advising company ceased trading and invite a creditor to wind up the company compulsorily.
In either case the directors conduct will be subject to scrutiny.