Maidment Judd

The number of petitions issued by HM Revenue & Customs (HMRC) to wind up companies and place them in liquidation has decreased 42% over the last year to reach its lowest figure in five years.

According to new figures from legal services firm Pinsent Masons, HMRC issued 3,733 petitions for winding up companies in 2012/13, compared to 6,440 in 2011/12.

Similarly, the number of winding up orders successfully obtained fell by 25% in the last year, from 3,339 to 2,541.

Serena McAllister, senior associate in restructuring at Pinsent Masons, said the figures “speak for themselves”.

She explained: “The drop in petitions to wind up companies and place them into liquidation, combined with evidence that suggests HMRC is increasing using its powers to seize business assets, show that HMRC is now using distraint as its preferred method of enforcement.

“This tactic appears to be paying off as HMRC’s recovery rate has increased significantly, which is good news for the taxpayer although not so good news for businesses.

“HMRC is becoming increasingly aggressive in the use of its powers. For some companies, particularly SMEs, the seizure of its assets could be the final blow and may even force businesses into insolvency in some instances.”

For the full story click here

Church leaders in Scotland and England are joining forces to compete with payday loan firms by setting up affordable credit unions.

The Church of Scotland is backing the Church of England after the Archbishop of Canterbury, the Most Rev Justin Welby, spoke of his desire to put firms like Wonga “out of business”.

The credit union movement is growing and one of the longest established is the Scottish Transport Credit Union (STCU) whose chief executive John Mackin is a delegate to Holyrood’s cross party group on credit unions.

People’s banks are becoming more popular with Scots from all backgrounds.

And the mere mention of payday loans firms makes Mr Mackin bristle with concern.

He believes they lend money irresponsibly without making sufficient checks to ensure borrowers can pay back the money they owe.

Mr Mackin is uncompromising in his criticism of the trail of human misery they leave in their wake.

He said: “The payday loan industry is nothing more than a financial cancer which causes unbelievable trauma. Ideally these companies should be banned if they are not lending in a responsible way.”

For the full story click here

The number of people and companies going bust in Scotland has gone up, according to official figures.

The Accountant in Bankruptcy (AiB) has revealed that nearly 4,000 people were declared insolvent between April and June this year.

More than 180 companies entered liquidation or receivership during the period.

Although an increase on the previous quarters figures – the longer term trend is one of decline.

Personal insolvencies increased by 14.7% in the second quarter of the year compared with the first three months of 2013.

However compared to the same time in 2012, the number of people going bust fell by almost 30%.

Only one company went into receivership between April and June and 183 were either voluntary or compulsory liquidations.

That is a quarterly rise of nearly 29% but a 56% fall compared with the same period in 2012.

For the full story click here

Business Secretary Vince Cable has proposed making fraudulent or negligent directors of UK companies personally liable for the firm’s debts as part of an overhaul of company rules.

He also said that directors deemed to be reckless should be disqualified from being able to work at another firm.

Mr Cable also wants to allow individual regulators to disqualify directors in their particular industries.

His proposals follow concerns over the toughness of corporate oversight.

A series of banking scandals, such as Libor and the mis-selling of PPI, as well as huge state bailouts in the wake of the financial crisis, have dented public confidence.

Mr Cable said: “We’re proposing tough measures to beef up the system for holding directors to account if they don’t play by the rules or take their responsibilities seriously. This will mean honest, hard-working directors are not disadvantaged and will give the public greater confidence that irresponsible directors will face consequences for their actions.”

For the full story click here