Are business owners throwing in the towel?
Conor Devine MRICS
Financier || Family Office advisor || Investor || Author || Multiple Ironman (9) || Wellness & Health advocate ?? ????
Good evening,
Are Business owners throwing in the towel?
It would appear, looking at some of the most recent Insolvency stats coming out across the UK that many business owners have finally had enough, and have resorted to throwing in the towel.?
In March 2023, Corporate Insolvencies increased from 1,784 in February 2023 to 2,457, a jump of some 37%, almost double the figure of March 2020, when we all experienced the first Covid lockdown.?
?It would appear, that this steady increase is as a result of a huge increase in creditors voluntary liquidations. This is where business owners themselves have had enough, voluntarily close up shop, and throw in the towel.?
On the Personal insolvency side of things, the numbers also increased in March by 38.9% to a total of 11,438, this is compared to February 2023’s total of 8,237.?
Unfortunately, but not surprisingly to anyone paying attention, the data and the numbers around this topic are all on the increase!
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It is important to point out that HMRC have now changed tac from the “Covid years”, and are aggressively pursuing all those businesses who are not up to date with their business tax affairs.?
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This HMRC approach is likely one of the main reasons why we have seen the numbers almost double in March 2023 from the previous month, for compulsory liquidations, to?288.?
Forbearance during the Covid years and beyond was generous for obvious reasons, and HMRC is generally reluctant to force companies into liquidation, wasting time and public resources, until it has exhausted all other routes to collect.?However we have seen a change of approach of late, with some of our own clients, so it is important the business community are aware of this.?
Business owners are well used to pressure of course, challenging times and dealing with stress and pressure, however the current environment is quite hostile and unpredictable as items like staff pay demands, energy costs, and as discussed last week on my blog, higher interest costs due to the “repricing of money” are all now adding to the challenges facing the business owners every day.
Like all of these things, it is important to stay on top of matters, not to procrastinate, and to continue to kick the can down the road.
The good news being that IF business owners react in good time and put tailored plans in place, often many of these issues can be dealt with.
The problems really start when people start to ignore these items and the stone in your shoe, becomes a rock, which if left unattended, can prove catastrophic for you, and your business.?
At GDP, we offer a PRE INSOLVENCY service, which is a solutions driven approach to solving some of these issues.?
Time is of the essence in our world, so do not delay, and if you find yourself under financial duress right now, get In touch with myself, or our team.
Have a great week.?
CD
Conor Devine MRICS