In January it was reported that the number of UK pubs and bars was on the rise for the first time in a decade. It truly began to seem like landlords had turned a corner when it comes to luck and that it was going to be commonly financially viable to own a pub once again, as it had been in the past.
Though, the terrible effects of the Coronavirus disease put a holt to this. The knock-on effect to businesses all around Great Britain were devastating, with the hospitality sector feeling the pain of the following business closures with full force.
If Covid-19 has had an effect on your pub business, perhaps you may need to seek out some guidance and financial advice. This is where our team here at Business Insolvency Helpline can help you out. By calling 01246 912052 you can receive free information on how to turn your business around and get it back on track.
Free insolvency guidance for pub landlords and bar owners
Our number one priority when working with clients is always to accomplish a business rescue wherever possible. We offer free advice via a phone call conversation where we can discuss the current state of your business venture, what has lead it to this position and how we can help you to rectify it, getting it back on track.
There are a number of possible potential solutions, so here’s a few examples to give you an idea of the sort of outcome we could help you to find:
A boost of additional finance
Here at Business Insolvency Helpline have professional contacts with over fifty alternative lenders across Britain. This helps us to offer support in sourcing and applying for that all-important additional funding. That’ll help you to pay your bills on time for example, something that is vital if HMRC is involved, as they have the ability to act fast in recovering arrears of tax, VAT, and National Insurance.
Another thing we can offer you is the ability to actually negotiate with HMRC, potentially allowing you some extra time to make payments.
Negotiating an HMRC Time to Pay Arrangement (TTP)
In some situations, it is possible to arrange an extended period of time in which to pay any HMRC arrears. Though this is normally between three and six months, instalment plans covering a full 12-month period may possibly be an option in certain cases.
HMRC are extremely flexible at the moment and the government has hired 2000 more people this will insure their insolvency helpline is fully accessible.
HMRC Coronavirus Helpline
Telephone: 0800 015 9559
Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm
We are experienced in mediating with HMRC mediators, if your venue needs help with this please do make contact with our team.
Negotiating and administering a Company Voluntary Arrangement (CVA)
Perhaps your business’ problems are only set to be relatively short-term, if so it may be that your company has a viable future. In this instance a formal solution such as a Company Voluntary Arrangement (CVA) may be the right option for you.
On the most basic level a CVA functions as a legally-binding payment plan between your outstanding creditors and yourself. This will make your monthly payments reduce to a more manageable level, and depending on what you can afford to pay back, a certain level of debt may even be written off all together.
If you decide to place the company into administration, you will give yourself respite from a creditor threatening legal action. This will buy you some time and allow you to form a restructuring plan that provides a healthier future for your business venture. You could do numerous things and make a vast amount of changes, such as closing down the less profitable areas of your business, though only you will know for sure what needs to be included in your business plan for the future.
Carrying out a Creditors’ Voluntary Liquidation (CVL)
In a situation where your business has been assessed, and is decidedly doesn’t have a viable future, you can protect your creditors’ interests by activating a voluntary liquidation of the company. Creditors are prioritised by a CVL and it can be a successful route for directors of pub and bar businesses whom may be concerned with personal liability.
How do I know if My Pub is Insolvent?
The insolvency test for is simple:
- Do you debts outweigh your liabilities?
- Can you pay your bills on time? If not, you are likely insolvent
Take a view of our insolvency test to confirm the figures
We’re here to help pub owners
At Business Insolvency Helpline we have a specialist team in the pub and bar sector that can provide you with the professional support you need. This can include many things, such as help with completing and submitting an alternative finance application, or perhaps to negotiate with creditors on your behalf. When you talk to us we’ll help to work out what you need and take it from there.
Speaking with a licenced insolvency practitioner is one of the first things you should consider doing once your business begins to face financial struggles. The information you receive from them will be authorised and regulated, they’ll be able to walk you through what it means to have a company that is insolvent and how the insolvency process can differ for smaller limited companies to larger firms.
If your business has been negatively effected by the ongoing Coronavirus, you should know that it was completely out of you control and not at all your fault. We can help you to turn your business venture around by working collaboratively with you and discovering a solution that fits your company. Pub and bar businesses were on the rise at the start of the year and we believe that they can be once again, as long as the owners of those business models are willing to seek out the advice and guidance they need to succeed, which is what we’re offering to you today.