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An insolvency practitioner is an individual licensed to help companies in financial difficulty. They are most frequently appointed to administer formal insolvency processes, such as liquidation and administration, but they can also be an invaluable source of support to company directors experiencing financial distress before the point of insolvency has been reached.
When seeking advice, always ensure the insolvency practitioner you are dealing with is fully licensed and regulated by an official body or association such as the IPA or ICAEW.
Concerned about the National Insurance increase?
For the 2024-25 tax year, the rate of employer National Insurance increases from 13.8% to 15% adding yet more pressure onto already squeezed cash flows. If you are worried about the impact this could have on your company’s finances, talk to the experts at UK Liquidators. As licensed insolvency practitioners we can explain your options and help you plot a way forward. Call today on 0800 063 9262.
Company directors have to take great care when their business is experiencing serious financial difficulty. Insolvency law in the UK dictates that directors have a legal responsibility to place the interests of the company's creditors above those of the directors/shareholders once they becoming aware that the company is insolvent or is soon to become insolvent.
Seeking help from a licensed insolvency practitioner once it becomes clear that the company is insolvent, in this situation is highly advised. Failing to cease trade in these circumstances could be viewed as director misconduct, and there’s a danger that creditors could suffer further financial losses as a result.
By taking advice from a licensed insolvency practitioner at the earliest possible opportunity can help ensure you adhere to your legal responsibilities as the director of an insolvent company.
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Licensed insolvency practitioners sometimes have a legal or financial background, and might work within an insolvency department of an accountant or solicitors firm. Alternatively, an IP could work for a specialist insolvency firm - this is the case for the insolvency practitioners at UK Liquidators.
Seeking the professional advice of an insolvency practitioner offers huge benefits to companies in financial distress, and can help to prevent further financial losses being incurred by either the company or its creditors.
It’s sometimes believed that insolvency practitioners only become involved when a business is about to close down, but this is not the case. Insolvency practitioners are also able to help companies reverse their fortunes by restructuring the business both financially and/or operationally through various measures.
A licensed insolvency practitioner must be appointed if a company wants to enter into any formal insolvency process in the UK, including company administration, Company Voluntary Arrangement (CVA), and voluntary liquidation.
An insolvency practitioner's primary role is to limit losses to outstanding creditors, often by realising business assets, but they’re also obliged to investigate the conduct of directors in the period of time leading up to the company becoming insolvent.
As well as assisting limited companies, an insolvency practitioner is also licensed to help individuals and sole traders in a similar way, offering advice and practical support in relation to bankruptcy or debt remedy measures such as Individual Voluntary Arrangements (IVAs).
Insolvency practitioners are also appointed to close down solvent companies and allow directors to extract the proceeds tied up within in a tax-efficient manner. This is achieved through a liquidation process known as a Members’ Voluntary Liquidation (MVL).
Even though the company is solvent, this is still classed as a formal process covered by insolvency legislation, and therefore a licensed insolvency practitioner must be appointed to oversee the process and ensure the company is wound down in an orderly and compliant manner.
Start your online liquidation today
If you have decided liquidation is the right option for your limited company, you can take the first step and begin the process online using our online portal. Starting the process is quick, simple, and can be done at a time that suits you. Your information will be submitted to your local UK Liquidators insolvency practitioner who will be with you every step of the way. Click here to start your company’s liquidation online.
You can seek help and advice from an insolvency practitioner as soon as you become aware that your company is experiencing a serious financial decline, or you become concerned that your business may be at risk of becoming insolvent.
If your company is already insolvent, you may wish to appoint a licensed insolvency practitioner to commence formal insolvency arrangements such as placing the company into administration or liquidation.
The earlier you take action once you become aware your company is insolvent - or is likely to become insolvent in the near future - the better. The sooner you contact a licensed insolvency practitioner, the more options will be open to you and your company. This is particularly important if you want to save the business from liquidation.
Given the large number of unregulated insolvency ‘experts’ advertising their services online, finding a local insolvency practitioner you can trust is essential. It’s very easy to be misled by people who claim to be insolvency advisers, who refer you on to a third-party licensed insolvency practitioner after charging for their services, delaying the guidance you desperately need and adding an unnecessary layer of confusion.
At UK Liquidators, all our insolvency practitioners are fully licensed to act as administrators and liquidators in both corporate and personal insolvency appointments.
Finding an insolvency practitioner who operates nearby is extremely helpful as it means you can meet them in person rather than communicating solely by phone or online. Your accountant or solicitor may have an existing relationship with a licensed insolvency practitioner in your area, or alternatively, with over 100 offices across the country, UK Liquidators are sure to have an experienced insolvency practitioner near you.
For more information and help, please call our team of licensed insolvency practitioners at UK Liquidators. We can offer you a free same-day consultation, and operate from a network of offices around the country.
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If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.
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