If your company is carrying heavy debt, falling behind with HMRC or suppliers, or you are preparing for the possibility of administration or insolvency, the next few weeks matter. We are on the side of owners and directors. We get the numbers right, stabilise what can be stabilised, and make sure directors meet their responsibilities, working closely with insolvency practitioners when a formal process is needed.
Tell us where the business stands. We will say honestly whether it can be turned around, what the options are and what to do first. Fixed fee quoted before any work starts.
Speak to Us in ConfidenceWe are accountants. We are not licensed insolvency practitioners, so we do not act as administrator, liquidator or supervisor, and we do not take formal appointments. James Fitzpatrick has 31 years' experience and is AAT licensed; the practice is supervised by HMRC for anti-money-laundering purposes. We are not a chartered firm (not ICAEW or ACCA) and we do not audit. This page is general information, not formal insolvency advice. Where a formal process is needed, the insolvency practitioner takes the appointment and we work with them.
A formal process works best, and costs creditors and directors less, when the information is complete and honest. We prepare the ground, in a way that is transparent and fair to creditors.
We do not move assets, favour connected creditors or prepare anything designed to defeat creditors. That protects you as well as them.
Many distressed companies have a profitable core carrying a loss-making section. We report profit by product, contract, site and customer, model the options (reprice, restructure, sell, close) and show what each does to cash. The aim is a smaller, profitable business, not a bigger one losing money. If that is achievable, the business may not need a formal process at all.
These are composite examples based on situations we commonly meet. Details are changed and combined, and none is a named client testimonial.
See also our bookkeeping clean-up, management accounts and fractional CFO service. We work with businesses in Brighton, Hove and across Sussex, and remotely across the UK. Get in touch in confidence.
Sources: The Insolvency Service; GOV.UK: HMRC secondary preferential creditor status.
Yes, in some circumstances. Directors are not automatically liable for company debts, but they can face personal liability for wrongful trading, misfeasance, preferring some creditors over others, and personal guarantees they have signed. Acting early, taking advice and keeping clear records are the best protection.
Wrongful trading is continuing to trade after a director knew, or should have concluded, that there was no reasonable prospect of avoiding insolvent liquidation or administration, unless the director took every step to minimise losses to creditors. A court can order the director to contribute personally to the company's debts.
Get an accurate picture of the position: a current cash flow forecast, an aged list of creditors, what is owed to HMRC, and what is owed to you. Then take professional advice quickly, record the decisions made, and stop taking on credit you cannot realistically repay. We help with the figures and bring in a licensed insolvency practitioner when needed.
No. Accounting Solution is not a licensed insolvency practitioner and cannot act as administrator, liquidator or supervisor. We prepare the financial position, work on turnaround and cash flow before any formal step, and work alongside the insolvency practitioner you choose or one we introduce.
Sometimes, but only with care. If there is a realistic route to recovery and creditors are not being made worse off, trading on can be defensible, supported by a forecast and a record of the decisions. If there is no reasonable prospect of recovery, continuing to trade risks wrongful trading, so the position needs checking quickly.
Administration protects a company from creditor action while an administrator tries to rescue it, sell the business or achieve a better result for creditors than a liquidation. Liquidation closes the company down, sells its assets and distributes the proceeds to creditors. Both are carried out by a licensed insolvency practitioner.
HMRC ranks ahead of ordinary unsecured creditors for VAT, PAYE, employee National Insurance and CIS deductions, so it recovers before them from the assets available. Corporation Tax and employer National Insurance rank as ordinary creditors. Any personal guarantee or director's loan owed to the company stays with you.
Often, yes. HMRC can agree Time to Pay arrangements for tax debts, usually requiring that returns are filed and that the business can show it can afford the instalments. A realistic cash flow forecast makes a proposal far more credible, and we prepare it with you.
A pre-pack is a sale of the business agreed before an administrator is appointed and completed straight after. Directors can sometimes buy the business back, but a sale to a connected person in the first eight weeks needs creditor approval or a qualifying report from an independent evaluator, and the company name may be restricted from reuse. This needs an insolvency practitioner early.
No. Selling assets at an undervalue or paying favoured creditors before insolvency can be challenged by a liquidator or administrator and may lead to personal liability or director disqualification. Our work is to make the position transparent and fair to creditors, never to hide assets or prefer connected parties.
Yes, if conduct is found to make a director unfit to run a company, for example continuing to trade while insolvent at creditors' expense, failing to keep proper records or preferring connected parties. Disqualification can last from two to fifteen years. Good records and creditor-fair decisions reduce the risk.
Yes. We analyse profit by product, contract, site or customer, identify the loss-making lines, and model what happens if you reprice, restructure, sell or close them. The aim is a smaller, profitable business rather than a larger one losing money, and many turnarounds start with this step.
We quote a fixed fee after a free, confidential first call, so you know the cost before we start. The fee for any insolvency practitioner is separate and is agreed directly with them; many offer an initial consultation without charge.