For those businesses who are struggling to escape the effects of the recession, one of the ways of avoiding “going bust” is to look at a CVA (Company Voluntary Arrangement).

The basic principle of a CVA is that the directors of the company will propose a deal with their creditors in exchange for the creditors not putting the company into liquidation. Creditors often look favourably on such a deal because:

• The deal should offer creditors a higher return than they would get in a liquidation where debtors often fail 
• The deal should offer creditors a higher return than they would get in a liquidation where debtors often fail to be collected
• The company or at least the business, survives and so allows for future trading opportunities
• All creditors with take the same percentage write off
• The proposal will include trading and cash flow forecasts for creditors to consider giving them some reassurance that they are not being created

It is not an action that should be considered lightly and other features include:

• More up-front costs but less on an ongoing basis as the directors stay in control of the company
• An insolvency practitioner will be appointed as Supervisor to the arrangement but that role is only to monitor the perofrmance of the arrangement not the running of the company
•  To be approved, the CVA needs 75& of creditros voting in favour. If 75% agree then all creditors are included and they cannot then take any action against the company
• To be approved, the CVA needs 75% of creditors voting in favour. If 75% agree then all creditors are included and they cannot then take any action against the company
• Payments to creditors will be instalments over a number of years.

If you want to discuss this option in more detail, please contact your Principal Adviser for further advice.

“Cycle to work” is a tax incentive scheme aimed at encouraging employees to cycle to work, therefore reducing pollution and ultimately improving their health.

Employers can loan bicycles and commuting equipment to their employees as a tax-free benefit on the condition that the bikes are used for work and work related purposes.

The decision whether or not to charge employees a fee for the use of the cycle is left down to the employer. The employee can pay by salary sacrifice, which will reduce payments of Income Tax for both the employer and employee and also National Insurance contributions.

Please note that the scheme is only available to UK taxpayers who pay PAYE. Self-employed workers cannot take part in the scheme.

Further information about the scheme and setting up the scheme for your employees can be found at www.cyclescheme.co.uk

Due to popular demand, we will once again be looking at the savings that can be made by moving your business away from the traditional limited company or self-employed structures. All forums take you through the ideas step by step and our presenters will be happy to answer your questions as and when they arise.

This seminar will take place on the 16th July starting at 7.45 for 8am sharp with tea / coffee and bacon rolls provided with an aim to finish by 9am. Places will be limited so email Jenny@a4gsolutions.co.uk to book.

We will then be taking a break from running our seminars during the school holidays.