Challenges UK Small Businesses Might Face in 2025
17th January 2025
IR35 Contractor – Close Your Solvent Company with an MVL for Tax Efficiency
26th February 2025
For many business owners, financial difficulties can feel overwhelming. Mounting debts, pressure from creditors and cash flow struggles create an uncertain future. Whether you’re looking to rescue your company or close it in the most tax-efficient way, Umbrella.UK Insolvency offers expert advice and tailored solutions.
Tom Fox, Head of Insolvency at Umbrella.UK, explains: “We understand that every business is different, and our approach is always personalised. Whether it’s business rescue or closure, our goal is to provide a clear, stress-free solution.”
Understanding real business rescue
Real business rescue involves professional strategies to help businesses overcome financial distress and avoid liquidation. Many directors assume that insolvency means the end of their company, but there are several ways to restructure, reduce debt and continue trading successfully.
At Umbrella.UK, we help business owners across the North West and nationally navigate complex financial situations. Whether you’re facing tax arrears, creditor pressure or declining profits, we offer solutions to restructure, refinance or rescue your company.
Real business rescue solutions
- Company Voluntary Arrangement (CVA)
A CVA allows a business to continue trading while repaying its debts in manageable instalments.
- Stops creditor pressure and legal action
- Reduces monthly repayments
- Protects your company from being forced into liquidation
Case Study: A Cheshire-based construction company faced overwhelming creditor pressure due to late payments on contracts. With a CVA arranged by Umbrella.UK, they reduced their debt repayments by 60% and continued trading successfully.
- Pre-Pack Administration
A pre-pack administration allows a business to restructure by selling its assets to a new company (often owned by the existing directors), ensuring continuity and protecting jobs.
- Allows fast business recovery
- Avoids lengthy insolvency processes
- Preserves key contracts and customer relationships
- Administration
If a company is facing serious financial distress, going into administration can provide legal protection while restructuring takes place.
- Prevents aggressive creditor action
- Provides time to find buyers or refinance
- Can lead to a CVA or sale of the business
- Time to Pay Arrangement (TTP) with HMRC
Businesses struggling with tax arrears can negotiate a structured repayment plan with HMRC.
- Avoids enforcement action
- Helps manage VAT, PAYE and Corporation Tax debts
- Protects cash flow
- Refinancing & turnaround strategies
For businesses with temporary cash flow issues, refinancing can provide the necessary capital to stabilise operations.
- Alternative finance options, including asset-based lending
- Debt restructuring plans
- Cost-cutting and efficiency strategies
Business closure options
If continuing your business is no longer viable, Umbrella.UK offers expert guidance on closing a company in a way that protects you financially.
Members’ Voluntary Liquidation (MVL) – For solvent companies
If you’re retiring, taking full-time employment or simply want to close a successful business, an MVL is the most tax-efficient way to distribute company assets.
- Lowers tax liabilities (Business Asset Disposal Relief may apply)
- Allows a structured and stress-free exit
- Ensures all obligations are legally completed
Creditors’ Voluntary Liquidation (CVL) – For insolvent companies
If a company cannot pay its debts, a CVL enables directors to close it in a managed and compliant manner.
- Avoids personal liability concerns
- Legally dissolves the company, removing stress
- Ensures employees receive redundancy where applicable
Tom Fox adds: “An MVL is often the best option for solvent company owners looking to retire or move on, while a CVL provides peace of mind for those needing to close an insolvent business responsibly.”
Why choose Umbrella.UK Insolvency for real business rescue?
At Umbrella.UK, we know that facing financial difficulties is stressful. Many directors worry about personal liability, staff redundancies and reputational damage. Our expert team provides compassionate, professional and confidential support to help you make the right decision.
- Over 20 years of insolvency expertise
- Personalised, jargon-free advice
- Cheshire-based office with national coverage
- Free initial consultation via video call, phone or in-person at our Wilmslow office
Take the first step today
If you’re worried about your business’s future, don’t wait for the situation to worsen. Contact Umbrella.UK today for a free, confidential consultation. Our expert team will guide you through your options and help you find the best path forward.
📞 Contact us today to book your consultation.