The world of insolvency has been becalmed over the last 18 months as a result of Government support and restrictions on creditor action as part of its response to the Covid 19 pandemic which removed a number of the typical pressure points on directors.
As we head into a new phase of ‘living with the virus’, the support and restrictions are being withdrawn. The furlough scheme ended and some of those restrictions expired on 30 September 2021. From 1 October, the heat was back on or at least partially. There are still some restrictions on creditor action.
Address labour market shortages by becoming an Employer Sponsor.
Bermans specialist Business Immigration team provides professional advice to UK and international businesses and investors.
Since the UK exited the EU there has been substantial changes to the immigration rules and there is an opportunity to recruit people from anywhere in the world.
Read more details about the new UK immigration system here.
The Government launched a consultation on 23 September 2021 regarding proposals to reform the Flexible Working Regulations 2014 to make flexible working the default position.
Currently, an employee has the right to request flexible working arrangements after 26 weeks’ service but the employer can refuse such a request for any of the following reasons:
extra costs that will damage the business
the work cannot be reorganised among other staff
people cannot be recruited to do the work
flexible working will affect quality and performance
the business will not be able to meet customer demand
there is a lack of work to do during the proposed working times
the business is planning changes to the workforce.
The Coronavirus Job Retention Scheme (“Furlough Scheme”) has been a lifeline to many employers during the Covid-19 pandemic, allowing businesses to retain employees that would have otherwise faced redundancy, but the scheme is now winding down and the Government is encouraging employees back to work with the lifting of the last restrictions from 19 July 2021. The return to work and the winding down of the furlough scheme however mean that business will face new challenges.
On the 22 June 2021 the Government extended, perhaps for the last time, the Coronavirus Act 2020 restrictions on issuing winding up petitions until 30 September 2021 (which is also when the furlough scheme ends) and landlord forfeiture/Commercial Rent Arrears Recovery until 25 March 2022.
It was assumed that other restrictions, such as the suspension of liability for wrongful trading, would also be extended but that was not the case and that suspension ended on 30 June 2021. So from 1 July 2021 directors can be sued for wrongful trading in respect of trading after 30 June which increases the deficit to creditors.
Niki Addison is Managing Director of Concert Networks, a connectivity and communications company based in Northwich (Cheshire) supplying businesses throughout the North West. Concert’s current focus is a connectivity project for the Liverpool City Region, which will see the roll out of a brand new £30 million, 212km full fibre network.
Businesses who are able to connect to the network for their internet connectivity will benefit from speeds of up to 1 gigabit. Niki talked to Bermans about the roll out and why projects like this are so important to the local economy in 2021 and beyond.
Many business owners are re-evaluating their future plans as a result of the pandemic. Some are finding that their thoughts on retirement planning are somewhat different now than they were back in 2019. Some owners have enjoyed more free time as their businesses have been forced to shut during the lockdowns and others have enjoyed more time at home as travel and office working has been discouraged.
In some cases exit plans have accelerated and business owners are looking at what options there are to achieve a sooner than expected exit. We consider some possible solutions in this article.
Remember the introduction of the General Data Protection Regulation (GDPR) that overhauled data protection rules a couple of years ago and required lots of changes to how individuals’ data was stored and processed?
Since the end of the Brexit transition period on 31 December 2020, UK businesses now have two versions of the GDPR to take into account – the UK GDPR and the EU GDPR.
Manchester Building Society (MBS) successfully appealed to the Supreme Court in a claim for negligence against its ex-auditors Grant Thornton (GT), after losing in the High Court and the Court of Appeal.
The facts of the case are quite unusual. However the judgment is of wider importance since the court took a different approach to assessing loss arising from an adviser’s breach of duty, from the previous line of cases going back to the 1990s, and the decision should signal a change of direction.
One of the more surprising handouts from the chancellor in response to the pandemic was the stamp duty holiday. As it comes to an end we explore what impact this will have on the housing market.
SDLT is the tax you pay on property purchases. The amount you pay depends on the value of the purchase. Prior to July 2020, SDLT was payable on all properties priced over £125,000.
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An update on some recent developments
