“Financial pressure can feel overwhelming, but early advice makes all the difference. At Holland & Co, we take a calm, practical approach — helping directors understand their options, protect their position, and move forward with clarity and confidence. Whether recovery or closure is the right path, we’ll guide you through every step with professionalism and discretion.”

— Nigel Holland, Principal, Holland & Co Chartered Accountants

Insolvency & Company Closures

Financial pressure can escalate quickly. Whether you’re facing short-term cash flow challenges or considering closing the company, early, confidential advice often leads to better outcomes for directors, creditors, and employees.

We work alongside a licensed insolvency practitioner (IP) to assess your options and act quickly. Our role is practical and solution-focused: stabilise the position, set out clear choices, and deliver the chosen route efficiently and compliantly.

When to seek advice

If any of the following apply, it’s time to talk:

• • HMRC arrears (VAT, PAYE, Corporation Tax) or rejected Time To Pay proposals

  • Creditor pressure, CCJs, statutory demands, or landlord issues

  • Persistent cash flow gaps, bounced direct debits, or maxed facilities

  • Overdue wages, rent, VAT/PAYE, or supplier accounts

  • Concerns about director loan accounts or personal guarantees

A short, confidential conversation can prevent problems becoming unmanageable.

Your options — in plain English

1) Informal restructuring and turnaround
Where the business is viable with breathing space, we can help with:

• • 13-week cash flow and rolling forecasts

  • Cost reduction and margin improvement

  • HMRC Time To Pay arrangements and creditor negotiations

  • Short-term finance or refinancing options

  • Rapid management information to support decisions

This route avoids formal insolvency where possible and buys time to recover.

2) Company Voluntary Arrangement (CVA)
A CVA is a legally binding agreement with unsecured creditors to repay a proportion of debts over time while continuing to trade.

• • Suitable for viable businesses with historic debt

  • Stops most legal action once approved

  • Typically 3–5 years with affordable monthly contributions

  • Requires a licensed IP to propose and supervise

3) Creditors’ Voluntary Liquidation (CVL)
If the company cannot pay its debts as they fall due, directors can place it into CVL.

• • Trading ceases; a licensed IP realises assets for creditors

  • Most unsecured debts end with the liquidation

  • Directors’ conduct is reviewed by the IP (a standard requirement)

  • Personal guarantees remain; we’ll help you understand the exposure

4) Members’ Voluntary Liquidation (MVL) — solvent closure
For companies able to pay all debts (usually within 12 months), an MVL is a tax-efficient way to distribute retained profits/cash to shareholders.

• • Requires a declaration of solvency from directors

  • Distributions are usually treated as capital (potential access to Business Asset Disposal Relief, subject to conditions)

  • Clean, final closure with IP oversight

5) Administration (including pre-pack sales)
Used to protect value where a sale or restructuring is required under legal protection (moratorium).

• • Can facilitate a going-concern sale to preserve jobs and contracts

  • Useful where there is threat of winding-up or enforcement

  • Complex; needs careful planning with the IP

6) Strike-off / dissolution
For dormant companies with no outstanding debts or liabilities.

• • Low-cost Companies House process

  • Creditors can object; inappropriate where debts exist

  • We’ll check suitability and risks before proceeding

Directors’ duties and key risks

Once a company is insolvent (or likely to become so), directors’ duties shift towards protecting creditors. We’ll explain:

• • Wrongful trading risks and steps to mitigate them (e.g. minimising further losses)

  • Preferences and transactions at undervalue to avoid

  • Managing overdrawn director loan accounts

  • Handling personal guarantees and lender negotiations

  • Employee issues (redundancy, TUPE) and claims via the Redundancy Payments Service (RPS) in formal insolvency

Getting advice early protects you and improves outcomes for all parties.

What we’ll need to move fast

• • Latest statutory accounts and recent management accounts

  • 6–12 months’ bank statements

  • Aged debtors and creditors listings

  • HMRC balances (VAT, PAYE, CT) and any Time To Pay agreements

  • Details of loans, HP/lease agreements, security, and personal guarantees

  • Contracts, leases, major customers/suppliers, and any legal actions

  • Bounce Back Loan/CBILS details (if applicable)

Our process

1. 1. Confidential consultation — 30–45 minutes to understand the position and your objectives.

   2. Options letter — clear routes, implications, timelines, and costs.

   3. Decision & preparation — we assemble the pack and liaise with the IP (where a statutory process is needed).

   4. Implementation — creditor communication, filings, and execution.

   5. Aftercare — tax, director, and personal finance follow-up where needed.

Why work with Holland & Co?

• • Practical advice first — rescue and stabilisation explored before formal steps

  • Joined-up support — accounts, tax, payroll, and creditor communication handled together

  • Trusted IP partners — experienced practitioners for efficient statutory processes

  • Clear fees — transparent engagement terms from the outset

Talk to us (confidentially)

If pressure is building, act now. Early advice widens your options and reduces risk.

Call 0151 420 6666 or email nigel@hollandandcompany.co.uk to arrange a confidential discussion.

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