Is The Taxman Killing Small Businesses?

The recent economic recession has had implications for businesses not just in the UK but all over the world, and many companies are unfortunately finding themselves in a position where they owe money to the Tax & VAT Man.  Any failure on your behalf to pay your tax or VAT liabilities is taken extremely seriously by her Majesty’s Revenue and Customs responsible for collecting and dealing with taxes.

Her Majesty’s Revenue and Customs tries to act fairly on behalf of all of the taxpayers in the United Kingdom. Although this is beneficial for all of the people that can pay their taxes on time, it also means HMRC try not to give preferential treatment to companies who are struggling to pay their taxes. Therefore, it makes things very difficult for businesses that do not have the finances to pay HMRC.

Seek Profession Advice

If you seek professional advice from an Insolvency Auditor, they will be able to present the most effective methods by which you should negotiate with the tax man. Her Majesty’s Revenue and Custom’s does not act like a traditional creditor because it doesn’t provide your business with credit and doesn’t ask you to pay before you have accrued the tax. However, this can work against you because they usually take very aggressive action to recover the money owed if you do not pay them back when the money is due. 

The HMRC has taken different stances in recent years. When the economic recession started in the UK at the end of 2008, many businesses started to suffer financially, and therefore tried to negotiate their tax bill and pay through a payment plan. For a while HMRC became more flexible, but due to the increasing amount of payment plans put in place for companies that were struggling, they were finding it hard to get all of their money back.

Although Her Majesty’s Revenue and Customs department claims to have payment plans available for businesses suffering cash flow problems, the reality is that small business owners can find it very hard to negotiate with the authorities. In extreme cases some businesses can be forced into liquidation. 

This drastic effect on the business community can leave some small businesses at the mercy of tax and VAT collectors if they have fallen behind on their payments. Small business owners may not realise that there is help available and should get in touch with their local insolvency auditor, who can try to help them negotiate and reach a deal with the taxman. 

Negotiations With Tax & VAT Man.

 Moe Nawaz, UK’s leading Insolvency Auditor and author of “Insolvency Survival Guide For Businesses”, believes small businesses will not escape the sting of Government cutbacks, as efforts to reduce the UK deficit trickles down through the economy to many private enterprises 

“We are beginning to see more business owners that are considering liquidation of their businesses because they have not been able to negotiate with HMRC for a repayment plans. This being the case HMRC and the tax payer both lose out because of a handful of enforcement officers who would rather send the work out to collection agencies rather than arrange a repayment plan,” he said.

“Once the authorities know a company has sought advice from an insolvency auditor, they appreciate the chance of liquidation and that the tax or VAT amount may not get paid at all. Therefore, it is in the taxman’s interest to strike a deal to reduce the debt and pay the balance over time, or arrange a CVA (Company Voluntary Agreement) subject to creditor agreement,” he added.

Businesses are finding life increasingly hard in this current economic crisis. This could lead to stresses spreading into their own personal life and cause problems both in and out of the workplace. So, seek help and advice from an Insolvency expert. 

To find out more, or to seek advice visit: www.ukadvice.com or call 0800240800. 

For more information please contact Moe Nawaz. Tel: 0800240800 

By DAILY MAIL REPORTER

Director Disqualification

Farepak Directors Face Disqualification

Former non-executive directors of failed hamper firm Farepak are trying to distance themselves from the executive team, as the Insolvency Service launches disqualification proceedings. 

Those who worked as independent directors of Farepak’s parent company, European Home Retail, have engaged separate lawyers to the former executive team, amid disagreements about how best to put forward the case for the defence. 

The Insolvency Service is trying to disqualify all nine former EHR board members from acting as company directors, accusing them of taking unreasonable risks.

More than 116,000 people lost an average of £317 after the failure of Farepak. All directors are planning to defend themselves. 

It is thought that former nonexecutives, who include Sir Clive Thompson who used to run Rentokil Initial, and outgoing Blacks Leisure chief Neil Gillis, believe they have a very strong case as they were directors of the holding company rather than Farepak itself.

Insolvency Helpline 0800 24 0800 For Directors

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 "We want to thank you Moe and your small Business advice team for doing an excellent job on the advice you gave us to turn our small business around. We personally know a number of small business owners who have been given very poor or wrong advice when their small business run into debts and financial trouble. They hired so called consultants and advisors. So when we first spoke with Moe on the telephone he assured us from that moment that he would help us no matter what and he did. To put our mind at ease he said please don’t take my word for it just google me under Moe Nawaz and see for yourself, we also found that he is also an author with his own books on Amazon.co.uk. Woking with you and your team of small business advisors, particularly Dave Mc, who helped out to put a new blueprint of our business plan together which has now made it possible to turn the corner for our small business with your advice and help. The whole experience and process was much easier than expected. Moe, you totally understood the concept and what we were trying to accomplish and were able to effectively help us reduce our debts and increase sale. We would recommend Moe and his small business advice team anytime to anyone." –John Morrison and Debra Smart, Mayfair – London 

"Moe Nawaz has a unique (perhaps unparalleled) ability to focus on the needs of entrepreneurs and early-stage companies such as our small businesses. Whether it's recognising a market niche, helping to build realistic financial models or simply bringing a business into greater focus, his hands-on approach provides small business owners entrepreneurs like us with the right advice, support and 'reality check' that many of us need. In a world of multi-national corporations and billion-dollar businesses, it's rare to find someone as capable and professional as Moe who's willing to help the little guys with big dreams."  - Dev Vasudeva, Accountancy Practice, East End – London.

"I have used many consultants over the years for my small business for advice before Moe Nawaz was recommended to me. Having been bitten a few times, I decided to do some research him on Google and found loads of articles written by him and also visited two of his sites ukadvice.com and his mastermindcoach.com website. Once I was satisfied after an initial telephone conversation with Moe, I went ahead with a meeting. I have to confess the work of his firm is far superior than I first thought. Moe your knowledge of small businesses is unrivalled and your team of advisers are relentless and their dedication and attention to detail is unsurpassed. When I am ready to grow my small business to the next level on Round 2, I will be sure to call on you." - Suzanna F Hendrickson, Sandiacre – Nottingham.

"From the first chat and free advice on the telephone to the final conclusion of achieving our business goals, Moe and his team made us feel like we were their only client. Not only did they devote countless hours to our business advice, meeting, telephone calls, planning strategies, marketing blueprints, but they were instrumental in whipping our small business back into shape and identifying new revenue streams. Moe's business insight, coupled with his extraordinary patience, has truly taken our small business to the next level. Moe Thanks you.- Joan & John Bradley, Trafford – Manchester

At The Small Business Advice Centre over the past 20 years, we've worked with over thousands start-ups, small businesses and emerging growth companies in industries ranging from retail and restaurants to technology/Internet, property businesses, fashion, manufacturing and wholesale distribution. Our small business advice and coaching have won praise – and funding – from leading banks and investors. Since opening our doors 20 years ago, Moe and his team have received favourable mentions in The Sunday Times, Trade Journal, Money Magazine, television and other leading business publications nationwide.

Moe Nawaz & His Team

What makes Moe and his Small Business Advice team different? We offer professional, personalised service to entrepreneurs and small businesses owners that is results driven not greed driven. Every client engagement starts with a one-on-one consulting session with our founder Moe Nawaz, and Moe remains personally involved in every project for as long as you remain a client. In addition to our top-notch Small Business advice team and consultants, we've also built a network of Solicitors, Insolvency Practitioners, accountants, public relations and marketing professionals, bankers and investors who are eager to work with our clients to help make their small businesses grow.

Call us on 0800 24 0800 Business Advice Helpline or email us to make an appointment today to help you with your small business!

Moe Nawaz Author – Speaker – Insolvency Auditor – Business Coach

6 Steps To Success – Personal & Business

 Think and Grow Rich by Napoleon Hill is one book you absolutely must read if you are serious about being successful in your business or your personal life. The following statement best summarises the premise of the book and the secret to attaining anything you desire: “Whatever the mind of man can conceive and believe it can achieve”. This article demonstrates 6 simple ways to turn you desires into gold.

The starting point of all achievement is desire. Not a hope, not a wish but a pulsating desire. Oscar Wilde famously said “we are all in the gutter, but some of us are looking at the stars”. Similarly you may be down and out financially right now but your thoughts could be those of a king.

The accumulation of wealth has nothing to do with chance, good fortune and luck.

Wishing will not bring riches. But desiring riches with a state of mind that becomes an obsession, then planning definite ways and means to acquire riches, and backing those plans with persistence which does not recognize failure, will bring riches. The following 6 steps to turn your desires into gold and outlined in Napoleon Hills book ‘Think and Grow Rich’, have worked for countless others.

Step 1 – Pick a Number

Fix your mind on the exact amount of money you desire. Don’t be fuzzy about it. Rather than say you want to have lots of money someday, be more definite. Instead try saying something like ‘I want savings of 100,000 dollars in my bank account’.

Step 2 – Give in Return

Decide what you are going to give in return for achieving your desire. There is no such thing as a free lunch. Giving in return for riches gained is like doing a deal with the universe. It works kinda like the principle of fair exchange in business. You get something; you give something of at least equivalent value in return.

Step 3 – Decide on a Date

Pick a specific date in your calendar by which you intend to posses the wealth and money your desire. Setting a date focuses the mind and is a great motivator. Time bound goals are measurable and therefore more achievable.

Step 4 – Create a Plan

Develop a definite plan to achieve your desire and begin it at once, putting it into action immediately, no matter whether you think you are ready or not. It’s important not to delay the taking of action. Act immediately even if the plan isn’t perfected.

Step 5 – Make a Statement

Draft a clear, concise statement of the amount of money you intend to acquire, the date by which you will achieve it, what you intend to give in return and describe clearly the plan through which you intend to accumulate this wealth. This statement becomes your affirmation of intent.

Step 6 – Read Aloud Twice Daily

Read you written statement aloud, twice daily, once before going to bed and once in the morning. As you read – see and feel and believe yourself to already be in possession of this money and wealth. Doing this exercise evokes the powers of autosuggestion which allows you to communicate the object of your desire to you unconscious mind. The unconscious mind in turn influence the conscious mind, its daily thoughts and actions.

It is important that you follow the sequence of steps described in this article and especially make sure you carry out point # 6 as this will ensure your money attainment and wealth creation programme seeps into your unconscious mind and you will become an unstoppable force just like a heat-seeking missile. It is irrelevant whether you are stone broke or have just a small amount of money in your bank account. If you truly desire money and wealth you will have no difficulty in convincing yourself you will acquire it. In fact, no convincing is required. Your desire combined with these 6 steps will ensure your success.

All who have accumulated great wealth or attained great success first did a certain amount of dreaming, desiring and planning before they got what they wanted. Follow these 6 steps and turn your desires into gold.

"Remember once you take your first step you are on your way"

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach

 By Helia Ebrahimi, Senior Business Correspondent Telegraph.co.uk

Corporate undertakers. Few professions enjoyed quite such a boom in the downturn as the men in black suits who turned up to bury household names – including Woolworths and MFI – in a series of insolvencies.

 The soccer juggernauts of South America are expected to outshine a sturdy Chilean team in today’s Brazil vs Chile match. But not if Chile’s coach, Marcelo ‘El Loco’ Bielsa, has anything to say about it.

 Trouble German cable operator Primacom is to file for insolvency protection, after its creditors rejected pleas for extra time to pay back a €29.2m (US$36m) loan.

The company – which has about one million customers across Germany – has been looking for a buyer since its debts grew to around €340m. Earlier this month it said would no longer be able to service those arrears and the deadline for repayment of the €29.2m loan expired on May 31.

In a brief statement yesterday, the company, which is controlled by investment group Escaline-Orion, said its main shareholders had decided to end negotiations and would now instead file for insolvency protection.

Primacom's daily operations are not directly affected and will continue to function during the insolvency period.

It now seems likely that its German cableco rivals, Liberty Global-controlled Unitymedia, Kabel Deutschland and Kabel Baden-Wuerttemberg (Kabel BW), will seek to buy up its remaining assets.

A Dow Jones report quoted a Kabel Deutschland source as saying it was interested in securing the 800,000-odd Primacom customers within its operational areas.

When contacted by C21, a Kabel Deutschland spokeswoman would not comment on specific M&A activity, but said: "We are generally interested in buying attractive level four assets in our footprint."

Liberty is looking to expand its acquisitions campaign in Europe, with CEO Mike Frears previously saying further moves in the German market were a possibility. A spokesman for Liberty declined to comment today when contacted.

Kabel BW was unavailable for comment at press time.

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

 By Harry Wilson Telegraph.co.uk
Published: 6:00AM BST 15 Jun 2010

Paul Jackson, chief executive, and Nigel Hamilton-Smith, head of business recovery services, have resigned from Vantis, the liquidators handling the insolvency of Stanford International Bank.

Vantis built its business sorting out companies in financial difficulties. So its clients may be shocked by the latest goings-on at the accountancy firm, which yesterday admitted to some money troubles of its own.

Shares in the Aim-listed Vantis were suspended as it told the London market that its chief executive and another senior manager had given up their jobs with immediate effect after concluding the firm may not have enough cash to continue operations.

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

By Helia Ebrahimi, Senior City Correspondent
Published: 6:30AM BST 27 Apr 2010 www.Telegraph.co.uk 

A staggering £55bn is owed by companies in financial distress threatening a tidal wave of defaults which could swamp healthy creditors, suppliers and service businesses, new research has found.

More than 160,000 companies are experiencing "significant" or "critical" financial distress and between them owe in excess of £55bn, according to Begbies Traynor.

In its latest Red Flag update, which highlights troubled businesses, the professional services group found a 14pc jump in the number of distressed companies. There were 161,601 red flagged companies in the first quarter of this year compared with the final quarter of 2009.

Although some of the increase was put down to a normal seasonal uplift at the start of a year, Begbies estimated half the rise was due to a more aggressive approach by trade creditors who were more willing to take court action against their debtors.

Bad weather and soaring input costs were also factors. Among the worst hit sectors were property services, where problem companies jumped 42pc, construction companies which saw a 30pc increase, retail firms (up 19pc), and recruitment, which also saw a 19pc rise.

Despite a rebound in the economy and equity markets, the latest figures represented the second successive quarter where the number of problem companies increased. It marks a renewed rising trend after company financial problems had begun to ease last year – from 185,772 troubled businesses in the first quarter of 2009 – helped by massive Government and economic stimulus packages.

Begbies said its experience of previous recessions showed the recovery phase of the economic cycle presented the greatest challenge to vulnerable SMEs and it warned the withdrawal of Government support needed to be handled carefully to ensure a soft landing.

Begbies defines companies with significant problems as those facing court action or with poor or out of date accounts, while critical refers to County Court Judgements totalling more than £5,000 or winding-up petitions.

Ric Traynor, executive chairman of Begbies Traynor, said while the economy appeared to be showing positive signs of recovery, the scale of company liabilities represented a serious risk to creditors.

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

 Insolvency is on the up and up again the number of insolvencies increased from 0.96 to 0.114 according to Experian the credit reference agency and information provider for marketing.

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

 by Fionnuala Bourke, Birmingham Mail

A CONVICTED fraudster who has duped companies into investing in a range of wonder products is being pursued through the courts by a Birmingham law firm for unpaid fees.

Solicitors at Martineau, based in Colmore Row, claim Dr John Walters, who runs Suffolk-based Havilland Manufacturing, owes them £12,000.

And they have issued the firm with a winding-up petition – the most serious action that can be taken against a company.

Walters latest venture, which involved Martineau, was to produce a nicotine gel to help smokers give up.

But he has been associated with a long line of wonder products, including a herbal viagra and a high-energy drink billed as a drug-free hangover.

And it was the high-energy drink which saw him jailed for 10 months at Ipswich Crown Court in 2004.

The court found that he extracted nearly £200,000 from a customer to hire a subcontractor to produce the drink, which never realistically existed in the first place.

Havilland, formerly known as Nicogel, has not filed any accounts with Companies House since 2006, and has been a client of Martineau since it was founded in 2004.

Tom McGuire, a partner at Martineau, acted as company secretary for the firm before resigning last month.

He said: “My involvement with the company was minimal, with the legal advice delivered by our corporate team focusing on restructuring the company.

“It would appear the company experienced serious cashflow problems and as yet, Martineau has not been paid for the legal services it provided.

“Martineau issued the winding up petition to try and recoup the fees of around £12,000.”

Martineau is not alone in chasing Walters for money. Several business partners around the country have come forward to say they have also been left out of pocket.

Martineau’s winding up petition served on Havilland is due to be heard at Birmingham District Registry on Wednesday, April 14.

Walters was unavailable for comment.

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

Helen Power, Gráinne Gilmore, Peter Jones  Timesonline.co.uk

The taxman is forcing recession-hit businesses to the wall, critics said yesterday as Revenue & Customs was implicated in the collapse of the Jarvis engineering business and the Scottish airline Highland Airways.

HMRC, which the Chancellor said on Wednesday would extend the Time to Pay scheme to help businesses affected by the recession, also issued nearly a third of all winding-up petitions in England and Wales last year as it clamped down on late taxpayers such as Portsmouth Football Club.

Stephen Alambritis, spokesman for the Federation of Small Businesses, said: “We have sensed a harsher approach towards businesses. This is at odds with what the Chancellor said in the Budget. ”

The Times has learnt that Jarvis’s lenders felt they had no choice other than to put 2,000 jobs at risk by putting the company into administration because they believed other creditors, including HMRC, were set to bankrupt Jarvis themselves. Bank of America and Bank of Ireland, which put Jarvis into administration over a loan of just £15 million, declined to comment. But it is understood they had received final demands for payment from HMRC and other creditors. HMRC was owed £3.2 million, according to Jarvis’s most recent accounts.

Highland Airways, which provides vital links to remote areas of Scotland, was the subject of a formal HMRC winding-up order. Scottish MPs queued up yesterday to say that the taxman had pushed the company over the edge. Danny Alexander, MP for Inverness, asked Treasury minister Stephen Timms to defer Highland Airways’ tax bill. He said: “If HMRC had been willing to live up to its promise to support businesses through the recession, then 100 people would still have a job this morning.”

Directors of the Inverness-based airline called in administrators Price water house Coopers on Wednesday night. All of its flights have been cancelled.

Bruce Cartwright, joint administrator, said: “The company had encountered trading difficulties, including the loss of certain contracts.”

While Lord Mandelson, the Business Secretary, has intervened in a number of administrations, including Woolworths, to ask lenders not to pull the plug, it is not known whether he asked HMRC to hold fire on either Highland Airways or Jarvis.

An HMRC spokesman said yesterday that he could not comment on individual cases adding: “HMRC only initiates winding-up or bankruptcy action where it believes this really is the best course of action to protect the interests of the Exchequer and in fairness to those who pay their tax on time.”

Advisers say that the taxman has stepped up enforcement against businesses under pressure from the Government to help to plug Britain’s yawning £857 billion national debt.

David Hudson, head of formal insolvency at Baker Tilly, said: “HMRC is now under real pressure from government to get heavier on its tax collection, so there has been a clear tightening of its Time to Pay’ scheme. What we are witnessing is how tough HMRC is becoming as a key creditor in the insolvency process.”

The Chancellor introduced new powers in the Budget to allow HMRC to demand money upfront from companies that are persistently late with income taxes and national insurance contributions. In the period between April 2008 and September 2009, HMRC issued about 5,800 winding-up petitions in England and Wales — some 30 per cent of all those issued.

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

1. Keep Your PAYE & VAT Paid To Date. First rule for the owner of any financially struggling business is to make sure you pay all your PAYE taxes on time, especially those deducted from employees' wages. Even if you are a sole trader or a limited liability company, the Inland Revenue can hold you personally liable for these taxes plus penalties if they're not paid. And even if the business goes bankrupt or in the case of a limited company, you could personally and legally be liable to pay them.

 2. Cash Flow Problems. Cash flow problems are one of the biggest causes of business failure.  When you know you don't have enough sales income coming in to pay the bills that are due, slow your outgoings immediately by cutting expenses to the bone. If you don’t learn to balance your income –V- expenditure you will most certainly be heading for the bankruptcy courts. You must prepare a short-term cash projection and plan for your immediate needs. Make a list of the monies owed to you, and collect as much of it as possible. Pay the necessary items like taxes and overhead costs, but delay paying other bills by working with suppliers and other creditors, talk to these people use your relationship to work out a payment plan.

3. Lying About Your Business Debts. I have seen people take business loans out by falsifying there application forms just to get the loan through. Soon after the loan only to find out they are unable to repay the loan back. It is amazing how many of these people think well if the company goes under its hard luck to the bank or the loan company for making the loan. No No No this is not the case, the loans can be reverted back to you personally if they are able to prove that the loan application was fraudulent. Once they are able to prove that it then also becomes a criminal offence also.  So if you decide that you need to apply for a business loan make sure you disclose the financial condition of your business then that way you will have nothing to worry about.

 4. Transferring Business Assets. What really amazes me that the number of times I have seen business owners transferring assets of the company when they know that the business is heading for bankruptcy. They do the most stupid things you can imagine like transferring property and other assets to friends or family. They must really think that the creditors and the Insolvency Practitioners are not aware of things like this? Dream on, they are fully switched on to these kind of trick and can revert transactions going back as far as 7 years if need be.  Again it become a criminal offence once you do this as you are hiding your assets from your creditors.

  5. Preferential Payments. You as owners are in a position of trust when it comes down to creditors money. Under normal trading it is ok to pay one creditor over another as long as you are paying every one on equal terms. But when your business id going through though financial times and you start paying one creditor over another and the company fails. You could face criminal charges and the transactions can be reversed back by the courts. In the event that your business fails then your outgoing payments will be scrutinised by the creditors or the Insolvency Practitioner to make sure that some creditors weren’t given unfair advantage and paid when others were paid nothing. Creditors who have security will no doubt exercise there rights to terminate and collect on the security.  

6. Wise to Keep Two Bank Accounts. If your business is facing serious financial problems and owes money to a bank, it's often wise to keep most of your current and other accounts with another bank who you don’t owe money to. This is because typically your loan agreement gives the bank the right to take your funds without prior notice if the bank thinks you're in financial trouble. (This is called a "offsetting.") It can be a shock to learn that one morning your bank has suddenly cleared out your funds from your current account.

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

The relationship between insolvency practitioners (IP) and landlords could be put under even further strain following administration threats by one of the UK’s largest companies.

Landlords claim that office provider Regus has threatened to place its smaller sites into an insolvency process if they did not renegotiate property contracts.

Liz Peace, chief executive of the British Property Federation, said that the Regus ploy was “cynical” and called for insolvency rules to be tightened to stop similar situations happening in the future.

The insolvency profession is concerned the conflict could hamper their dealings with landlords in future situations.

There is already a strain in the relationship, as landlords feel they lose out in some administrations, say advisers. “The last thing IPs want is to sit down with landlords in a case and for them to say ‘hang on,
you did this in another case’,” said Garry Brett, insolvency expert and partner in real estate at law firm Stevens & Bolton.

Chris Laughton, partner and IP at Mercer & Hole, believes landlords should use an insolvency expert to help determine whether insolvency processes have been used fairly.

Regus, which posted profits of £2m in the last year, told Accountancy Age it had sought to “re-gear” its landlord ­liabilities by requesting renegotiations of its rental fees on a small number of loss-making properties.

In our view

The move could have ripple affects on future administrations. IPs are widely seen as playing it tough when it comes to negotiating contacts. However they should be seen as the helping hand in a difficult situation, and someone to be welcomed – not the strong arm of the law with which companies can make their threats with.

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

Bankruptcy Seminar In Birmingham (April 2010)

Birmingham Insolvency Helpline 0800 24 0800

Is your business in financial trouble? Has the recent recession put a major crimp in your cash flow? Take heart! You do have options.

Two of the speakers are well known authors on bankruptcy and debts Moe Nawaz a business turnaround consultant from Birmingham and Kiran Mistry an insolvency practitioner from Leicester.

Bankruptcy is always an option for people living in Birmingham or the UK. But there are alternatives. Come to a FREE presentation by experienced insolvency practitioners about you choices. Learn how bankruptcy could help, or about other ways to get cooperation from creditors. Also get tools to help decide if you should just close the business down. Find out more click this and contact us.. Or for Free company insolvency or company liquidation help call 0800 24 0800.

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

About five years back, if you mentioned the term "home-based business," it would conjure up images of hobbyists tinkering in their garages on handcrafted products or eBay junkies who worked part-time peddling the contents of their attic. But in just the past decade, the home-based business population has evolved into a vital economic force that now totals more than 15 million, according to a recent study. And more than just their sheer numbers, new research shows that many home-based businesses can be just as substantial and financially successful as businesses operated in big-city skyscrapers. 

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

For the full story click on this

Being your own boss has plenty of perks. And working from the comfort of your living room only sweetens the deal. A look at some of the hottest industries for home-based businesses. Click for more details

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

Are you seeking to grow your business but are not sure how to go about it?
Do you need some help adapting your business offer to the current conditions in the market?

From the timesonline.co.uk

A jump in the number of middle-class professionals going bust last year as their debt-fuelled lifestyles hit the buffers contributed to a record total for people becoming insolvent, according to official figures.

Findings from the Insolvency Service reveal that more than 134,000 people went bankrupt, entered an individual voluntary arrangement (IVA) or took out a debt relief order (DRO) in England and Wales last year, a 26 per cent increase on 2008.

This is the highest total since official records began in 1960 and marks the scale of the toll taken by the recession on debt-laden consumers.

Separate research from Grant Thornton, the accountant, shows that IVA requests rose fastest among mid- dle-class professionals who had been financing their lifestyles on credit.
 

Experts anticipate that insolvencies will continue to climb this year as interest rates rise and more jobs are axed. But tens of thousands of high earners have already gone under as a result of the credit boom that fuelled the UK’s growth in the decade before the recession. Mike Allen, head of IVAs at Grant Thornton, said: “The [figures] include experienced professionals who would have considered themselves wealthy and able to cope before the financial crash, and many are families with young children where both parents have been earning solid incomes. Changing circumstances and debt can affect anyone.”

The banking crisis prevented many people from gaining access to further credit — their traditional means of covering debt payments. Falling house prices compounded the problem, as they could not borrow more against the equity in their homes, with thousands plunged into negative equity.

Peter Sargent, president of R3, the insolvency trade body, said: “Many people, including professionals, were living to the maximum of their means and beyond, using cheap and easy credit. They can no longer use their house as an ATM machine.”

Mr Allen added that high-earning workers were also hit by the paltry bonuses paid out last year by businesses struggling through the downturn.

“People … still have jobs,” he said, “but they just can’t cover the cost of the debts.”

IVAs are available to people with unsecured debts of more than £15,000, While those who go bankrupt forfeit their home, IVAs usually allow a property to be retained.

The Insolvency Service figures also showed the number of people becoming insolvent in Scotland last year leapt 18 per cent, while Northern Irish insolvencies rose by just 0.1 per cent.

Business liquidations rose 22.8 per cent last year, with 19,077 companies going to the wall. There was a glimmer of hope as the rate of failure slowed in the final quarter, but David Hudson, London head of corporate insolvency at Baker Tilly, the accountant, said: “With the Bank of England calling time on quantitative easing … , administration figures will rise again.”

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

Financial Stress 

One of the most common side effects that people experience when trying to cope with their debt problems is financial related stress. Stress is defined as “physical, mental, or emotional strain or tension” and is brought about by a large range of factors including relationship break-up, problems at work or, in this case, debt.

How to get help

There has been much hype over recent months over claims that loan and credit card debts taken out before 6^th April 2007 can be written off due to recent changes in the law. Whilst much of the information surrounding this issue is inaccurate or misleading it is true that in some cases lenders are unable to issue legal proceedings to recover monies that are owed to them. This is because some of their credit agreements lack what are called 'prescribed terms' and are therefore considered 'irredeemably unenforceable'.

Moe Nawaz – Author – Speaker – Insolvency Auditor - Business Coach 

Our Business Finance

1. Know who you

If you believe information being reported about you is inaccurate, incomplete or outdated, challenge it by notifying the credit reporting agencies listed below.

www.equifax.co.uk

www.experian.co.uk

Yes. Many credit cards enable you to pay the entire outstanding credit amount within a certain time period without incurring any finance charge. By paying off your credit balance within the grace period, Read the rest of this entry

A fixed interest rate means that the rate of the finance charge does not change throughout the duration of the extension of credit. For example, a car dealer may offer a loan for a car at 4.9%APR for 24 months; this means the APR is fixed at 4.9% for the duration of the loan (which is an instalment closed-end credit loan). Read the rest of this entry

Credit is money granted by a creditor or lender to a debtor or borrower, who defers payment of the debt. In exchange for the credit, the lender gets back the money, usually paid on a monthly basis, plus interest. The debtor gets the use of the money to pay for and take possession of things today and the creditor gets back more money that s/he loaned out. Modern society is dependent upon credit to generate sales; it enables people to have the things they want and need, but can’t afford to pay for right away.

Interest is the compensation that is demanded by the creditor for the use of his/her money. Money has a “time value” to it; over time (due to inflation) the value of money decreased: what a pound will buy today is much less than what a pound could purchase 20 years ago. Since a creditor pays out money today in exchange for a repayment of it in the future, the creditor loses the time value of that money. In order that creditors make credit available, they are allowed to charge interest, often referred to as a finance charge. For example, if a lender gives you £10 worth of credit, s/he might expect to be repaid £11 within the next two months; the extra pound is the interest charged for the loan. Click here for a Free debt analysis! Interest on credit can be either simple or compound. Simple interest is interest charged only on the principal amount borrowed. Simple interest does not add the interest charge back to the outstanding loan during the length of the loan. Thus, simple interest charges are less than compound interest charges. Compound interest is interest charged not only on the principal, but on the interest accrued during the length of the loan. Compound interest is more expensive to the debtor, because interest is charged on interest. The amount of interest that can be charged is sometimes regulated by law. Credit is extended pursuant to a written contract. The written contract sets forth the respective rights and responsibilities of the creditor and the debtor. Credit can be used by both businesses and individuals. When an individual uses credit, it is referred to as “consumer credit”.