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Insolvency lawyers to be called in under new government?

Published on 14 May 2010 under category: legal

UK businesses dependent on late payment schemes for survival could face an uncertain future under the new government, according to one expert.

Last month, Experian reported that insolvencies rose in March to 0.114 per cent, from 0.096 in February.

However, more firms could be in need of insolvency lawyers, as the new coalition government seeks to make severe cuts to reduce the deficit.

Many industry commentators have attributed the steady rate of insolvencies to schemes set in place by the former government.

The Time-to-Pay scheme in particular has been considered a key factor in preventing a higher number of failing businesses.

In Accountancy Age this week, industry expert Martin Williams highlights how small firms could now be in for a tougher time.

He writes in his blog Risky Business: "If the HMRC starts to get tougher under the new coalition regime, how many of these businesses will be able to pay up?

"When you think about it, if a business says it can't pay its tax on time, it can't have the money to set aside for when it is asked to pay the bill at a later date - unless of course its one of the lucky ones that have seen a healthy improvement in their daily affairs in recent months."

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett