Here we are settled into our new building at Falcon Court, Stockton: happily showing round clients and contacts who fancy a conducted tour.
So new building but has the work changed? The answer must be largely no, though in my line of work (corporate recovery and insolvency) I have noticed a change in terms of more people and businesses attracting the interest of government agencies.
Firstly, for the third time in as many months we have come across companies that have become subject to the attention of HMRC’s collection team. In each case HMRC has started the court procedure to wind the company up. That prompted response from directors that includes: “but that makes no sense as all the staff will lose their jobs” and “I offered half the money on the basis that if they wind the company up they will get nothing”.
Secondly, directors of companies that have gone bust, and people who have been made bankrupt, have found themselves in the sights of the Insolvency Service: the Government insolvency department that both picks up the liquidations and bankruptcies that the private sector can’t take or doesn’t want to take and also investigates (sometimes leading to prosecution) those directors and bankrupts who have broken the rules.
In both cases the initial reaction to the approach of a government department is often one of surprise. Whatever the case, and no matter how unwanted this attention may be, it doesn’t go away. If there was one piece of advice we give to all such clients is “don’t ignore it, once you have been identified by them you won’t be forgotten”.
The bottom line is that these agencies of the state play by a different set of rules to the average businessman. For example HMRC is concerned by not just late payment but also “compliance” (filing accurate returns on time) and payment history. It is guided by much more than just commercial advantage; principle is the key.
It helps to consider the rationale for these issues. In the words of the often reported Victorian general: your own tactics are largely dictated by those of the other side. Understand HMRC and the Insolvency Service and you will have a better chance of avoiding confrontation with them; their job is to protect the public and follow the law. Should you fall foul of the rules then again an understanding of the other side will give you the best chance of avoiding a traumatic and very expensive experience.
For all Corporate Recovery and Insolvency matters please contact Stephen Wiles on swiles@jacksons-law.com or call 01642 873733.
