Small business owners who abuse insolvency procedures to avoid repaying COVID debt could be banned from being company directors for 15 years.
Dissolution via strike-off or voluntary liquidation is only supposed to be used by companies who:
-Have no prior insolvency
-No longer have any assets
-Have not been trading
-Have informed their creditors
The new investigation measures have been implemented to prevent directors from winding up their companies without going through an insolvency to drop outstanding debts or investigations.
Knowing how to take control of your business finances to maximise profits can be difficult, especially with the current climate. Knowing the common mistakes to avoid can be difficult and can leave you feeling unsure.