Insolvency: What Company Directors Need to Know

Directors’ Q&A: Insolvency warning signs, options, HMRC action & liquidation explained

Small business in trouble? Partner Shaun Barton sits down with licensed insolvency practitioner Dave Broadbent (R3 Yorkshire Chair) to demystify insolvency for owner-managed companies: the real-world warning signs, what to do first, how liquidation actually works, dealing with HMRC (field officers, TTP, petitions), director risks, costs, timelines, and the alternatives (rescue, CVA, pre-pack/newco).

🔗 Need confidential advice? Speak to Real Business Rescue:
Contact us: https://www.realbusinessrescue.co.uk/...

Check if you’re insolvent (tests & signs): https://www.realbusinessrescue.co.uk/...

⏱️ Timestamps (chapters)

0:00 Intro — “Is this right for the company and for you?”
0:53 Meet Dave Broadbent (R3 Yorkshire Chair; 30 years’ experience)
2:04 What is insolvency? (cash-flow & balance-sheet tests; common triggers)
2:54 Why directors delay asking for help (embarrassment, uncertainty)
3:43 First diagnosis: is the business viable? Is the company viable?
4:38 Liquidation explained (precursor to dissolution)
5:36 “I’ll let HMRC liquidate me” — compulsory vs voluntary liquidation
7:03 If you receive a winding-up petition: regain control with CVL
8:20 HMRC now more aggressive (field officers, bond requests, VAT)
10:50 Time To Pay (TTP): who gets it, term lengths, pitfalls, compliance
13:01 What liquidation looks like today (online process)
14:10 Typical timeline & what happens immediately after instruction
15:19 If the business is viable but the company isn’t (newco/going concern)
16:34 Company Voluntary Arrangement (CVA): structure, returns, when it fits
19:50 The “twilight period” — what to do (and not do) before a decision
21:04 Who to pay? Avoid preferences (s239 Insolvency Act)
22:39 Handling company assets & avoiding transactions at undervalue
24:27 Will a CVL affect my personal credit rating? (company vs individual)
25:15 Costs & who pays; using company assets to fund the process
26:12 Market snapshot: sectors under pressure (construction, retail, hospitality)
29:04 Budget & wage pressures; knock-on effects across teams
31:31 Why it’s so hard for micro-SMEs now (funding, PGs, rates)
33:29 Worried but hesitant to call? Why one conversation helps
35:01 Wrap-up & how to get help

📚 Useful resources mentioned & related guides

Warning signs & tests of insolvency:
https://www.realbusinessrescue.co.uk/...

HMRC arrears: options & TTP:
https://www.realbusinessrescue.co.uk/...

Stop a winding-up petition:
https://www.realbusinessrescue.co.uk/...

Creditors’ Voluntary Liquidation (CVL) explained:
https://www.realbusinessrescue.co.uk/...

Company Voluntary Arrangement (CVA):
https://www.realbusinessrescue.co.uk/...

💬 Need help now?

Speak to an expert IP today for clear, practical next steps:
https://www.realbusinessrescue.co.uk/...

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