Accountants

Working together

Dunedin Advisory work with a few select preferred accountancy firms for the benefit of their clients.

Some of our combined services

Members Voluntary Liquidation “MVL”  
Where it is identified that assets and/or cash can be distributed via an MVL as a tax efficient solution our insolvency practitioners Christine Convy and Angela Paterson can be appointed as Joint Liquidators. We are happy to contribute to exploratory meetings with you directly or with you and your clients and provide you with observations when you are considering this option.
When to Call DA
When a business intends making a capital distribution on cessation of company operations in excess of £25k and a dividend to reduce reserves to £25k not tax efficient/feasible.

Business advice on preventative matters
Where a business is looking to restructure or hive off key assets we can discuss the principles and provide guidance on risk considerations or areas that could be open to challenge in the future to ensure risks identified and mitigated.  For example, where assets are being transferred to either connected or unconnected parties for less than what may be perceived as market value.
When to Call DA
Where you are considering any transaction that may be open to challenge should any future events result in the insolvency of the business or there is a hint of a future action and assets are at risk.

Cashflow or financial constraints
Where businesses experience any cashflow or financial constraints we can work with you to consider options and provide ideas for a variety of solutions.  This may include consideration to informal or formal restructuring including stakeholder negotiations. We have successfully supported many business turnarounds avoiding formal insolvencies.  We work with unincorporated and incorporated businesses from one man to larger corporate SME entities.  We do not undertake work for large multinational or listed companies.
When to Call DA
Where a business or any connected stakeholder is experiencing cashflow difficulties, suffering from loss making trade or facing threat of legal action/damages claims which could impact on continued trade.

Independent opinion
We can provide an independent opinion or report depending on the requirements enhancing proposals to various stakeholders.  For example
– funding applications – creditor negotiations (ie HMRC settlements) – dispute resolutions – share purchases – acquisitions – restructuring – succession.
The opinion can include commentary around the business viability/business value/ability to service commitments/swot etc depending on its purpose.
When to Call DA
Where independent/expert opinion required to ratify your proposals and include insolvency practitioner/expert witness opinion on estimated outcomes within stakeholder negotiations.

Independent business review/business valuations
We are adept at IBR and business valuation work and often asked to provide opinion on valuations which form part of court proceedings – shareholder disputes/marital separations and to determine a fair value for use in settlement negotiations.  We have successfully resolved situations with out of court agreement being achieved.   Often the current accountant is perceived by outside parties as conflicted and our independent report can be useful in supporting your opinion.
When to Call DA
Where independent/expert opinion required to prepare an IBR or comment on business valuations already prepared.

Endorsing Employee Ownership Trusts
We are an Employee Owned Business ourselves having successfully completed an EOT in April 2020.  We fully endorse the business structure and share our experiences in implementation.
When to Call DA
If you require live example of successful EOT and your client wishes to discuss practical aspects of the process leading up to the EOT and thereafter so that they can better understand if it is a route they wish to follow.

Debt Arrangement Scheme or Business Debt Arrangement Scheme
These government backed schemes are a useful tool for individuals/unincorporated businesses to put in place a mechanism to renegotiate payment of debts over a longer period than their current arrangements allow thus alleviating cashflow pressures.  It enables repayment without added penalties and no interest is payable.  DAS can typically be up to 10 years with BDAS up to a 5 year term. We are FCA registered and able to implement both schemes.
When to Call DA
Where an individual or unincorporated business requires some relief from non secured debts including a freeze on interest/longer period of repayment and informal negotiations have not been accepted by all creditors.  This can be in respect of business debts or personal debts including consumer liabilities and personal guarantees.

HMRC negotiations
We are on the panel of IPs appointed by HMRC and are known to HMRC for our professionalism and integrity.  We are often called upon to provide opinion on recovery prospects for HMRC.   We have direct access to HMRC personnel in debt management in Edinburgh and can provide added support where clients require to negotiate repayments.
When to Call DA
Where initial negotiations and time to pay proposals not accepted by HMRC and you require an independent insolvency practitioner report on the outcomes should HMRC not accept proposals offered.

Formal insolvency appointments
Where a client may be facing insolvency or formal creditor negotiation to write off some of their debt we first of all work with you to consider how and if this can be avoided. Where unavoidable or is required on a positive restructuring/exit basis we can undertake formal insolvency appointments for individuals, businesses and corporate entities.
When to Call DA
When an individual or business requires a form of debt relief and you wish to explore what options may be available presently or in the future we can discuss the various scenarios and relevant criteria with you and your clients.  We encourage discussions at an early stage so that as many options can be considered and the client remains in full control rather than other stakeholders taking action against your clients’ interests.

Debt Recovery
We can provide guidance or tips where your client encounters a bad debt or customer/stakeholder insolvency or where they wish to use this as a mechanism for debt recovery.

Ad hoc queries
We are happy to be a sounding board for ad hoc queries that may arise – on a hypothetical basis or named basis within our confidential undertakings.

CPD
We are happy to conduct CPD sessions – workshop or webinar style on any of the above to share with your team as required.

The options

There may be several solutions available or there might just be one. It will depend on the financial circumstances of the business, company or individual. The insolvency procedures are set out in law, and their benefit is that the creditors must accept the legal consequences of the solution.

Preparing for insolvency

We always require a formal statement of the individual or company’s financial affairs in a formal insolvency, and in certain situations can allow your assistance in the production of the information as a cost of the insolvency procedure.

Using your services as existing accountant

Sometimes we require the business accounts to be completed to the date of insolvency, and tax, VAT and payroll records to be processed, up to and throughout a period of informal insolvency. The cost of doing so can be met as a cost of the insolvency procedure.

Creditors facing customer insolvency

Creditors rank according to law, and each class of creditor shares in the available cash by way of a dividend. Depending on the amount available, they may get none, some or all their money back. To qualify for a dividend, they should submit their claim to the insolvency practitioner dealing with the company. We can assist in the preparation of their claim, interpret the insolvency practitioner’s report, and assist with any voting decisions that your client may face.

The Bank

Depending on how the company’s financial arrangements are structured, the bank may be one of the most influential creditors. If the bank holds a floating charge, it can request the appointment of administrators to the company in certain circumstances. It is important that where a company is facing insolvency, your client understands the bank’s options and how these can be exercised. We are happy to assist you and your client with any bank negotiation in the course of business restructuring or exit.

Director responsibilities on company insolvency

The advantage of a company with limited liability is that formal insolvency will unlikely affect the directors’ personal financial position, unless the directors have provided personal guarantees to any of the creditors. Accordingly, we can advise directors providing a personal guarantee in the course of refinancing, or set out their options if it is relied upon in the course of an insolvency.

A liquidator or administrator will have the right to examine transactions between the company and its directors, and to investigate and report on the conduct of the directors’ in the three-year period ending in formal insolvency. They will examine any directors’ loan accounts for recovery or claim purposes, and we can assist with any negotiations in respect of its recovery.

We can assist your client on their director responsibilities where the company is facing insolvency.

Refinancing

We have excellent relationships with lenders, invoice financers and asset based lenders. If your client is exploring their refinancing or working capital options, we would be happy to introduce you, at no cost to your client, and with no fee payable to Dunedin Advisory.