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There are many aspects to consider before you decide to close your limited company. Some of these might sound obvious, while others can be overlooked in the potentially confusing process, and easy-to-miss if you’re unfamiliar with liquidation.

This can be especially true if your company is insolvent and under pressure from its creditors.

Here are some scenarios where you may have to or want to close your company and some of the essential steps to take while doing so.

When might you want to liquidate your company?

A company doesn’t need to be insolvent to enter liquidation. You might want to liquidate a solvent company for any of the following reasons:

Market changes that impact your company’s viability going forward.

The company has come to the end of its useful life or has fulfilled its purpose.

You’re retiring as a director without a successor, and you don’t want to sell the company.

The company is insolvent, can’t pay its liabilities when they fall due, and pressure from creditors is making trading impossible.

Before deciding how you want to close your company, consider its situation, including the following circumstances:

Is your company solvent or insolvent?
Your company is solvent if it has no outstanding liabilities and can repay its bills as and when they fall due. If this applies to your company and you wish to close it, you can do so via a dissolution, or a solvent Members Voluntary Liquidation (MVL) if the company has sufficient assets.
If the company is insolvent, you should take advice from a licensed and regulated insolvency practitioner as soon as possible. These highly experienced professionals can help guide you to the solution best for your company.

What are your company’s tax obligations?

Any outstanding amounts to H.M Revenue & Customs (HMRC) should be settled before liquidation. The company’s final accounts should be settled too. If the company can’t afford to pay its bills to HMRC, they are likely to pursue you for what you owe. Don’t ignore this recovery action.

Are the company’s leasing agreements settled?

Review the terms around any leases for machinery, property, or company vehicles. You should ensure that these are met before you liquidate your company. Contact your lease provider and discuss your situation and intentions for the company prior to liquidation.

What are the rights of your employees, including redundancy?

Consider your employees when it’s time to liquidate your company. The prospect of redundancy can be a distressing and uncertain time, and in dealing with the matter, you should be sensitive to their situation. Make sure you provide adequate notice and make them aware of what they’re entitled to.

Does the company have an unpaid Director’s Loan Account or Bounce Back Loan?

Any outstanding Director’s Loan Account should be addressed before liquidation. If these are left outstanding, they could leave you personally liable for the company’s debts.

Similarly, if your company took out a Bounce Back Loan during COVID and the company still hasn’t repaid the outstanding amount when you liquidate, the loan becomes an unsecured debt. They didn’t come with personal guarantees, but if you misused the Bounce Back Loan, you could still become personally liable for the outstanding amount.

If you have either of these outstanding, speak to a licensed and regulated insolvency practitioner before you attempt to close the company.

What to do next

If you’ve considered all the above, you should know whether your company is solvent or insolvent, which will help you decide your next course of action.

Solvent liquidation

If your company is solvent and has enough assets to justify a solvent liquidation, you can explore a Members Voluntary Liquidation (MVL). Closing the company like this, as opposed to dissolving it, means you could benefit from Business Asset Disposal Relief (BADR).

Insolvent liquidation

An insolvent company that cannot feasibly recover from its burdensome debts should close through a Creditors Voluntary Liquidation (CVL). This process closes the insolvent company and draws a line under the debts.

Both types of liquidation must be carried out by a licensed and regulated insolvency practitioner.

To summarise

Closing your limited company is a multifaceted process and requires careful consideration of various legal, financial, and operational factors. Whether your company is solvent or insolvent, it has obligations to creditors, tax authorities, employees, and lease providers, and it is essential that you understand these to ensure the process goes as smoothly as possible while you fulfil your duties as a director.

Speak to a licensed and regulated insolvency practitioner for tailored advice on the most appropriate route for your company.

Read more:
When and how to close your limited company

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Bitcoin is about to hit $100,000, join Bitconemine and learn how to make $3,000 a day.

The UK government is committed to kickstarting the nation’s economic growth, but recently released trade figures from HM Revenue & Customs (HMRC) indicate a substantial journey ahead, according to leading audit, tax, and business advisory firm Blick Rothenberg.

Simon Sutcliffe, Customs & Excise Duty Partner at the firm, commented: “Trade statistics for 2023, published by HMRC yesterday, show that the UK remains a predominantly service-based economy in international trade, with imports and exports of services dwarfing the movement of goods. The total value of exported services in 2023 stood at £187 billion, whereas imports of services were £423 billion.”

He added: “In some notable industries, the exports by sector exceed imports in value. Importantly, the main industries where imports exceed exports are agriculture and food, and the oil, energy, and petroleum sectors. This may feed opposition claims that the UK remains food and energy insecure.”

Sutcliffe continued: “Although reducing import rates in the agriculture and food, and oil, energy, and petroleum sectors is important both politically and economically, the services sector remains crucial to delivering economic growth. Hopefully, the government will give sufficient focus in future trade deals to matters affecting this part of the economy, such as regulatory frameworks, common standards, and access to talent and skills.”

He highlighted that the United States and China, aside from the EU bloc countries, remain the UK’s largest individual trading partners. “The US is the largest export market at £57.7 billion and import market at £63.3 billion for goods and services. The US is closely followed by China, with an export value of £27.3 billion and imports at £62.2 billion,” he said.

Sutcliffe noted that this situation puts pressure on the Prime Minister over how to handle trade policies with these major economies.

He added: “The EU exports to the UK are valued at £189.1 billion, whereas imports are valued at £326 billion. This is one of the largest trade imbalances in the report and perhaps indicates the struggle that UK businesses, whose sole overseas marketplace prior to Brexit was the EU, have faced post-Brexit in dealing with new administrative and customs burdens that have impacted how and with whom they do business in the EU.”

Read more:
Trade figures reveal UK’s challenge to boost economic growth

The UK’s Gambling Commission is preparing to settle a £200 million legal claim from media mogul Richard Desmond regarding the awarding of the National Lottery licence, aiming to resolve a dispute that has hindered technological upgrades.

The UK’s gambling regulator is reportedly moving to settle a £200 million damages claim filed by media tycoon Richard Desmond over the operation of the National Lottery. The Gambling Commission has requested a mediation meeting with Mr Desmond’s company, Northern & Shell, proposing an out-of-court resolution to the legal dispute. This meeting is expected to occur in the coming weeks.

While the settlement aims to address the substantial claim, it is believed that the final agreement may not reach the full £200 million initially sought by Mr Desmond.

The decision to pursue a settlement stems from growing concerns that the ongoing legal battle is complicating efforts to upgrade the technology systems that underpin the National Lottery, which is the UK’s largest distributor of charitable funds.

Mr Desmond initiated a High Court challenge after the Gambling Commission awarded the fourth National Lottery licence to Czech operator Allwyn, bypassing bids from Northern & Shell and the incumbent operator, Camelot, which had managed the lottery since its inception in 1994.

Allwyn, controlled by billionaire gas magnate Karel Komárek, assumed control of the lottery in February. However, its tenure has faced difficulties, including delays in transitioning to a new technology provider. The company’s plan to introduce a new IT system has been repeatedly postponed, with further delays anticipated.

This technological overhaul is critical to Allwyn’s strategy to launch new games and double the lottery’s contributions to good causes from £17 billion to £34 billion over the 10-year licence period.

It is understood that the Gambling Commission’s eagerness to settle is partly due to expectations that the IT upgrade deadline will need to be extended again. Officials are reportedly reluctant to grant another extension while Mr Desmond’s legal action is pending, fearing it could strengthen his claim that awarding the licence to Allwyn was a mistake and that the auction process was flawed.

In February, Northern & Shell filed a procurement lawsuit against the Gambling Commission over its decision. During a High Court hearing in June, the company described the licensing process as “seriously flawed,” accusing the Commission of giving “unfairly favourable treatment to Allwyn.” Mr Desmond has previously questioned Allwyn’s suitability, stating they have “no experience in the UK.”

Industry experts suggest that Allwyn’s new systems should have been operational when it took over the licence. Robert Chvátal, Allwyn’s chief executive, had warned of potential delays even before the transition. The company missed its summer deadline and is now reportedly targeting February 2025, though insiders believe this may be further postponed, potentially impacting donations to good causes.

Allwyn has attributed some setbacks to a legal dispute with the former IT provider, International Game Technology (IGT). Although IGT’s legal challenge was dismissed by the High Court in 2023, the company continued to seek damages until January of this year.

Extended delays may hinder Allwyn’s ability to meet its ambitious fundraising goals. The company is already falling short of sales projections, with turnover expected to be significantly less than the £8.2 billion achieved by Camelot in its final year.

The National Lottery remains one of the UK’s most lucrative public sector contracts and its largest source of funding for sports, heritage, and charitable causes across the country.

A spokesperson for the Gambling Commission stated: “In accordance with the order of the court, at all stages the parties must consider settling this litigation by any means of alternative dispute resolution. Naturally, the Commission will continue to have regard to those requirements.”

An Allwyn representative commented: “We are investing more than £350 million in the biggest technology upgrade in the National Lottery’s history, and we are working towards switching over from the existing legacy systems to our new modern platform. Once it is live, we will be able to transform the way customers play the National Lottery and, crucially, drive even more returns to good causes.”

A spokesperson for Mr Desmond declined to comment.

Read more:
Gambling Commission seeks settlement with Richard Desmond over £200m lottery licence dispute

Conservative MP calls for increased investment in technology to reduce reliance on low-paid migrant workers, highlighting automation as a means to boost efficiency and lower net migration.

Businesses should adopt more automation technologies instead of hiring low-paid migrant workers, according to Conservative MP Chris Philp. Speaking on BBC Breakfast, Philp emphasised the need for increased use of robots and automated systems in industries to reduce the UK’s net migration figures.

“Other countries use a lot more automation for tasks such as picking fruit and vegetables, rather than simply importing a lot of low-wage migrant labour,” Philp said. He pointed to examples like Australia and New Zealand, where robotic fruit and vegetable picking equipment is being implemented. He also noted that South Korea utilises nine times the number of robots in manufacturing processes compared to the UK.

“In America, they use a lot more modular construction, which is much faster and much more efficient,” he added. “There’s a lot British industry can do to grow without needing to import large numbers of low-wage migrants.”

At a recent press conference, senior Conservative figures acknowledged past shortcomings on immigration policy. Kemi Badenoch, a leading Conservative MP, promised a review of “every policy, treaty and part of our legal framework,” including the role of the European Convention on Human Rights (ECHR) and the Human Rights Act.

While Badenoch committed to a “strict numerical cap” on migration and said the Conservatives would “explain how you get to those numbers,” she did not commit to restoring the Rwanda scheme that was previously scrapped. Philp, however, called for the scheme to be reinstated, stating that it had been “cancelled before it even started.”

When questioned about reports that ministers had considered using a giant wave machine to deter Channel crossings, Philp responded: “I don’t recall ever having seriously looked at that idea. I can’t remember if someone else did.”

Philp declined to specify a figure for the proposed migration cap but suggested that net migration figures of 350,000 would be “much too high.” He stressed the importance of determining “exactly how many high-skilled, high-wage people we need,” and addressing concerns over degree courses being used “as a sort of parallel migration system.”

He added that the Conservative Party would examine migrants’ eligibility for benefits among other measures to reduce net migration.

Read more:
Businesses urged to embrace automation over low-wage migrant labour

UK consumer and business confidence declines as Labour’s tax-raising budget sparks concerns over hiring, rising costs, and economic growth prospects.

UK consumers and businesses have grown more pessimistic about the state of the economy following Labour’s tax-raising budget, which has triggered concerns over hiring and escalating costs.

Recent surveys indicate a decline in confidence among British households and the vital services sector this month, undermining the government’s ambitions to permanently elevate economic growth to the highest in the G7 over the next five years.

According to the British Retail Consortium (BRC), a survey conducted this month found that more households are worried about the economy than before the budget announcement. The uncertainty has led households to maintain steady spending levels in November compared with October, despite the approach of Christmas, with only a marginal improvement in their personal financial situations post-budget.

In a separate survey assessing confidence among service-sector businesses—which constitute about three-quarters of the economy—there was the sharpest drop in optimism in two years over the three months to November, interrupting a nine-month trend of improving sentiment.

The Confederation of British Industry (CBI), which conducted the survey, reported that services firms are grappling with elevated wage costs, a situation likely to worsen after the government’s decision to raise employers’ national insurance contributions from April, expected to generate £16 billion to £20 billion annually.

Alpesh Paleja, the CBI’s interim deputy chief economist, remarked that the data does not present “a pretty picture,” adding: “Falling sentiment, weaker hiring intentions, and firming cost pressures are all at least a partial response to the forthcoming rise in employer national insurance contributions.”

Recent indicators of economic sentiment have dipped following the government’s £40 billion tax-raising budget and warnings of “tough choices” for public finances. Official data showed a 0.7 per cent decline in retail sales in October, ahead of the budget.

The BRC’s survey revealed a two-point decline in household sentiment regarding the state of the economy, down to minus 19. Consumers reported only a one-point improvement in their personal financial situation between October and November, while overall savings intentions and spending remained unchanged.

Helen Dickinson, chief executive of the BRC, stated that the retail industry faces a £7 billion rise in costs due to the national insurance increase, leaving the sector “little choice but to raise prices or reduce investment in jobs and shops.”

“To mitigate this, the government must ensure that changes to the business rates system, planned for 2026, bring about a meaningful reduction in bills for all retailers,” she said.

The national insurance rise could derail the steady recovery in hiring reported in the private sector this year, according to the Recruitment and Employment Confederation (REC). Its latest survey showed an improvement in economic sentiment in the three months to October and a surge in employers’ confidence in hiring decisions last month.

“The scale of the changes to employers’ national insurance—in particular, the decision to increase the tax far more for lower earners—will be a headwind for hiring confidence from here on in,” said Neil Carberry, chief executive of the REC. “The Chancellor has balanced the books on the backs of businesses across the country; now she needs to deliver on support for growth.”

Read more:
Labour’s tax hikes dampen UK consumer and business confidence

The Competition and Markets Authority (CMA) has reported that UK drivers are still paying more for fuel than they should because of “stubbornly high” retail margins.

The watchdog expressed concerns over weakened competition in the fuel sector, leading to inflated prices at the pump.

According to the CMA, fuel margins remain higher than historical levels. Supermarket fuel margins increased from 7% in April to 8.1% in August, while non-supermarket fuel margins rose from 7.8% to 10.2% during the same period. The sustained increase suggests that competition in the road fuel retail market remains weak.

Dan Turnbull, Senior Director of Markets at the CMA, stated: “While fuel prices have fallen since July, drivers are paying more for fuel than they should be as they continue to be squeezed by stubbornly high fuel margins. We therefore remain concerned about weak competition in the sector and the impact on pump prices.

“With that in mind, we are pleased the government is progressing with our recommendations. These measures will empower drivers to find the cheapest fuel wherever they are in the UK, increase competition and support the economy. The more people save on fuel, the more they have to spend in other areas.”

The CMA noted that fuel prices fell from June to October, driven by global factors such as crude oil costs. Average petrol and diesel prices at the end of October were 134.4p and 139.7p per litre, respectively—a decrease of 10.0p and 10.4p.

However, the retail spread—the difference between the price drivers pay at the pump and the benchmark price retailers pay for fuel—remains above the long-term average of 5p to 10p per litre. From July to October, petrol averaged 14.9p per litre above the benchmark, while diesel averaged 16.3p per litre. This indicates a continued lack of competition in the sector since retail spreads have remained elevated since 2020.

Simon Williams, Head of Policy at the RAC, commented: “It’s disappointing to hear that the CMA is still concerned about competition among fuel retailers and that margins remain higher than historic levels, especially after it announced this summer that drivers were overcharged by £1.6 billion in 2023.

“We hope the introduction of the government-backed fuel-finder scheme next year will succeed in driving greater competition and enable drivers all around the UK to benefit from fairer prices. In the meantime, cost-conscious drivers can download the free myRAC app and use it to find the cheapest fuel near them.”

The CMA’s concerns come as drivers continue to feel the pinch of higher living costs. The upcoming fuel-finder scheme, supported by the government, aims to increase transparency in fuel pricing and promote competition among retailers, ultimately benefiting consumers.

Read more:
Drivers Paying Too Much for Fuel Due to High Retail Margins, Says CMA

First-time homebuyers in some of the UK’s most expensive areas are hurrying to finalise property purchases before April 1, when stamp duty costs are set to rise by an average of £6,300, according to new data from Rightmove.

Demand for homes among first-time buyers in London has increased by 3 percentage points since the recent budget announcement, with many expressing a strong interest in completing transactions by March 31.

From April 1, the stamp duty exemption threshold for first-time buyers will decrease from £425,000 to £300,000. This change means that properties priced above £300,000 will incur stamp duty costs, disproportionately affecting buyers in London, the East of England, and the Southeast, where property prices are highest. Rightmove reports that only 8% of homes in London will remain stamp duty-free for first-time buyers after the change, compared to 32% in the East and 24% in the Southeast. In contrast, 73% of homes in the Northeast will still be exempt.

Property consultancy Savills estimates that the average first-time buyer in London will see stamp duty costs increase from £2,752 to £9,002, an additional £6,250. Despite the urgency, the average property transaction takes about five months (151 days) to complete, leaving little time for new buyers to finalize purchases before the April deadline, given there are only 124 days until the changes take effect.

Past stamp duty changes have led to surges in property transactions as buyers rush to meet deadlines. Research by Savills during the 2021 stamp duty holiday showed that sales leapt from 143,460 in February to 177,300 in March ahead of a March 31 deadline. Similarly, just before the extended deadline on July 1, purchases jumped from 114,800 to 204,370 in June. However, agents have noted that such rushes can lead to buyers overpaying for properties, sometimes negating the stamp duty savings.

Read more:
First-time buyers rush to complete purchases ahead of stamp duty increase

Car production in the UK has fallen for the eighth straight month, intensifying pressure on the automotive industry as it navigates the shift towards electric vehicles (EVs).

According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), manufacturing output declined by 15.3% in October, producing 77,484 units. This drop leaves the total output down by 10% so far this year.

The downturn comes amid market turmoil following Stellantis—the parent company of Vauxhall—announcing plans to close its van-making plant in Luton, putting up to 1,100 jobs at risk. The company cited the UK government’s stringent zero-emission vehicle (ZEV) mandate as a contributing factor.

Mike Hawes, Chief Executive of the SMMT, expressed deep concern over the industry’s future. “These are deeply concerning times for the automotive industry, with massive investments in plants and new zero-emission products under intense pressure,” he said.

Hawes highlighted that the slowdown in the global market, especially for EVs, has significantly impacted production. He noted that the UK is particularly exposed due to having “arguably the toughest targets and most accelerated timeline but without the consumer incentives necessary to drive demand.”

On Tuesday, Stellantis announced plans to consolidate its UK van manufacturing operations by creating an all-electric hub at its Ellesmere Port plant in Cheshire, investing £50 million in the facility. The decision aims to streamline production and focus on electric vehicle manufacturing in response to the ZEV mandate.

The ZEV mandate requires that at least 22% of new cars sold by each manufacturer in the UK this year must be zero-emission, with the level increasing annually. Stellantis stated that the decision to close the Luton plant was made within the context of these “stringent” regulations.

Jonathan Reynolds, the Business Secretary, told Members of Parliament that ministers had done “everything we possibly” could to prevent the closure of the Luton plant. He also confirmed plans to review the ZEV mandate as part of a consultation on the government’s plan to ban the sale of new “purely petrol and diesel” cars by 2030.

Liam Byrne, Chairman of the Business Select Committee, wrote to Reynolds with a series of questions regarding support for local communities affected by the closure and measures to boost consumer demand for electric vehicles—a concern echoed by several car manufacturers.

The SMMT’s latest figures reveal that the production of battery electric, plug-in hybrid, and hybrid electric cars fell by a third in October. The 24,719 units produced represented 31.9% of the total output.

Overall, production volumes for both domestic and export markets declined in October, down 4.7% and 17.6%, respectively. Notably, eight out of ten cars manufactured in the UK are shipped abroad.

Mike Hawes emphasized the challenges of stimulating demand and meeting regulatory targets, stating: “The cost of stimulating that demand and complying with those targets is huge and, as we are seeing, unsustainable. Urgent action is therefore needed, and we will work with government on its rapid review of the regulation and the development of an ambitious and comprehensive industrial strategy to assure our competitiveness.”

Read more:
UK car production declines for eighth consecutive month amid EV transition challenges

The number of Britons using X, formerly known as Twitter, has plummeted since Elon Musk’scontroversial takeover two years ago.

A new report by Ofcom reveals that UK adults visiting the platform’s app or website dropped from 26.5 million in 2022 to 22.2 million in 2023, reflecting a significant exodus.

The findings from Ofcom’s annual Online Nation report suggest growing dissatisfaction with Musk’s leadership, particularly among Left-leaning users disillusioned by his political affiliations and policy changes.

Musk’s outspoken support for Donald Trump, including his endorsement of Trump’s presidential candidacy and hundreds of promotional posts to his 200 million followers, has provoked criticism from UK users. Musk has also waded into UK politics, labelling the country a “tyrannical police state” and warning of a potential “civil war.”

His decision to reinstate banned accounts, including far-right figures such as Tommy Robinson and Katie Hopkins, and his “light-touch” moderation approach, has further alienated users. Critics argue that these policies have allowed hate speech to proliferate on the platform.

Additionally, Musk’s emphasis on paid subscriptions—such as boosting posts from verified users who pay a monthly fee—has drawn backlash, with many accusing him of eroding the platform’s accessibility and user experience.

Matt Navarra, a social media consultant, attributed part of the decline to Musk’s rebranding of Twitter to X:

“The redesigns and the rebranding including the switch from Twitter to X have also played a role. It broke its cultural currency. Stripping that away left many users disconnected.”

Competition from rival platforms has intensified. Reddit saw UK usage jump by 47%, attracting 22.9 million visitors as of May 2023. Threads, the microblogging platform launched by Meta, now boasts 5.3 million UK users and has gained 35 million users globally since November. Bluesky, another competitor, added 7 million accounts in under a month following Trump’s re-election campaign.

x’s demographic shift and further challenges

X remains more popular among men, who make up 63% of its UK user base. However, daily active users of the platform’s app have dropped significantly, from 6.9 million in November 2022 to 5.2 million in November 2023, according to data from Similarweb.

In contrast, platforms like YouTube, Facebook, and Instagram maintain their dominance as the top three social media services by reach in the UK. Meanwhile, TikTok has experienced a 13% growth, reaching 24 million UK users.

Ofcom concluded: “Although X remains the highest-reaching micro-blogging service, its UK adult reach continues to gradually decline.”

With competitors like Threads, Bluesky, and TikTok capturing disillusioned users, X faces increasing pressure to retain relevance. The platform’s controversial political affiliations, policy changes, and brand overhaul may continue to erode its user base unless strategic changes are made to restore trust and engagement.

Read more:
Millions of Britons abandon X amid backlash against Elon Musk’s leadership