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Every page on LTD Turnaround in one place: 128 guides, tools, sector pages, data trackers and policies. If your company is under pressure, you can tell us what is happening and we will review it and reply with what we think the right next step is.

Insolvency and rescue topics

• A customer has failed The bad debt is only half of it. What to do in the first week, where you rank, and the solvency question it raises about your own company.
• Administration How administration protects a company from creditors while a rescue or better outcome is pursued.
• Administration vs liquidation Administration tries to rescue a company; liquidation closes it. When each is the right answer.
• Alternatives to liquidation Liquidation is not the only option. The rescue routes and informal alternatives that may save a viable company.
• Bailiff action What enforcement agents can and cannot do when a company owes money, and how to respond.
• Bank account frozen Wages, suppliers and direct debits all stop at once. Why accounts get frozen, what a validation order does, and the order to do things in.
• Bounce Back Loan What happens to an unpaid Bounce Back Loan if your company cannot pay, and the misuse risk to directors.
• Business rescue If the business is viable, rescue may beat closure. The main UK rescue routes compared.
• Can a Company Go Bankrupt? What It Is Actually Called in the UK In the UK, bankruptcy is for people; companies become insolvent and go into liquidation or administration. What a bankrupt limited company actually means, and what happens next.
• Cannot pay wages If your company cannot meet payroll, it is a serious sign of insolvency. Your duties, the risks and your options.
• Cash flow problems Cash flow trouble is the earliest warning of distress, and the point with the most options. What to do.
• CCJ against a company A County Court Judgment against your company is a warning sign and a credit problem. What it means and what to do.
• Choosing an IP What to look for in an insolvency practitioner, the questions to ask, and how to check they are genuinely licensed.
• Close a company The right way to close a UK company depends on whether it is solvent or insolvent. Compare the routes.
• Company liquidation What liquidation means for a UK company and its directors, the three routes, what it costs and what happens next.
• Compulsory liquidation When a court forces a company to close after a winding-up petition. What it means and how to respond in time.
• Corporation Tax arrears What happens if your company cannot pay its Corporation Tax: interest, HMRC enforcement, Time to Pay and when arrears signal a bigger problem.
• Creditor pressure Statutory demands, CCJs and threats from creditors. How to respond and what each step really means.
• CVA A CVA lets a viable but struggling company repay creditors over time and keep trading. How it works.
• CVA vs administration Both can rescue a viable company. A CVA repays debt over time while you keep control; administration gives protection and a practitioner takes over.
• CVL A CVL is the director-led way to close an insolvent company. How it works, what it costs and what it means for you.
• CVL vs strike off Strike off is cheaper but only for solvent companies. When you need a CVL instead, and the risks of getting it wrong.
• Director disqualification How director disqualification works under the CDDA 1986: grounds, 2 to 15 year periods, undertakings, compensation orders and what a ban actually stops.
• Director loan account An overdrawn director loan account becomes a debt you owe the company. What that means if the company fails.
• Director redundancy Many director-employees can claim redundancy pay when their company is liquidated. Most never realise it.
• Fixed and floating charges What fixed and floating charges are, how crystallisation works, and the exact order creditors are paid in a UK liquidation, with the prescribed part.
• HMRC debt HMRC is one of the most active creditors of failing companies. How to handle VAT, PAYE and Corporation Tax arrears.
• HMRC debt collectors The nine debt collection agencies HMRC really uses, what they can and cannot do, and how to check a letter from BPO, PDCS or Advantis is genuine.
• Is My Company in Trouble? A Neutral Check Cash-flow pressure, creditor enforcement, or likely insolvency? Three different problems with three different answers. Work out which one you have.
• Liquidation vs dissolution Dissolution removes a company from the register; liquidation is a formal insolvency process. Why the difference matters.
• Misfeasance What misfeasance means in a UK liquidation: section 212 Insolvency Act 1986, who can bring a claim, what the court can order and the defences.
• MVL An MVL is the tax-efficient way to close a solvent company with retained profit. How it works and when it fits.
• PAYE arrears Unpaid PAYE and National Insurance can in some cases be passed to directors personally. What to do about PAYE arrears.
• Personal guarantee A personal guarantee can make you liable for company debt after the company goes. What to check and do.
• Personal Liability Notice When HMRC can make a director personally liable for company National Insurance, and what to do if you receive a notice.
• Phoenix company Starting a new company after liquidation is legal, but reusing the old name is tightly restricted. The section 216 rules.
• Pre-pack A pre-pack sells a viable business the moment it enters administration. How it works and the rules around it.
• Resigning as a director How to resign as a UK company director, the TM01 filing, what happens if you are the only director, and the liabilities resignation does not remove.
• Statutory demand A statutory demand is a formal warning that a creditor may petition to wind your company up. What to do in 21 days.
• Strike off Striking a company off the register costs little but is only for solvent, dormant companies. The traps explained.
• Time to Pay A Time to Pay arrangement (TTP) is HMRC's payment plan for company tax debt. How to propose one HMRC will accept, and what it costs.
• VAT arrears Falling behind on VAT is one of the fastest routes to HMRC enforcement. Your options if your company cannot pay its VAT.
• Voluntary vs compulsory A CVL is started by directors; compulsory liquidation is forced by a court. Why choosing the voluntary route protects you.
• Winding-up petition A winding-up petition is the most serious creditor action. The timeline, your options and how long you have.
• Wrongful trading Continuing to trade when you should have stopped can make a director personally liable. The red flags.

In-depth guides

• Am I personally liable? Most directors are not personally liable for their limited company's debts. The specific exceptions that make you liable: personal guarantees, an overdrawn loan account, wrongful trading, misused Bounce Back Loans and unlawful dividends.
• Business rescue finance How UK companies fund a rescue or a restart after insolvency: the finance options at each stage, the order to do things in, and the rules that keep a restart legal.
• Directors guide to insolvency Everything a UK company director needs to understand when the company is in financial difficulty: your duties, the options, and the personal risks.
• Employees when a company closes Employee rights and claims when a UK company becomes insolvent: redundancy, wages, holiday and notice pay from the Redundancy Payments Service.
• Guides In-depth, plain-English guides for UK company directors: insolvency, closing a company, employee rights and dealing with HMRC.
• HMRC arrears funding When funding a VAT or tax bill makes sense, when Time to Pay is the better answer, and when borrowing against HMRC arrears is the wrong move entirely.
• How to close a company A step-by-step guide to closing a UK limited company the right way, whether it is solvent or insolvent.
• Invoice finance in a CVA How invoice finance funds working capital while a CVA runs or an administrator trades the business, what lenders look at, and where the insolvency practitioner fits.
• Phoenix company finance Starting a new company after insolvency is legal if the rules are respected. How a phoenix or NewCo gets funded with no trading history, and the legal lines that keep the restart legitimate.
• Rescue finance case studies Two illustrative examples of how rescue and restart finance is structured in practice: a construction firm funded after a failed CVA and a haulage business bridged with invoice finance.

Help by sector

• Care homes Why staffing costs and local authority fees squeeze care providers, and why an insolvency must protect residents.
• Company Insolvency by Sector Sector-specific guidance on company distress and rescue: construction, hospitality, retail, recruitment, transport, manufacturing, care and more.
• Construction Why construction firms fail more than any other sector, and how directors can protect live contracts or close properly.
• Hospitality Why rent, energy, staff costs and seasonality push pubs, restaurants and hotels into arrears, and when a CVA can help.
• Manufacturing How energy and input costs squeeze manufacturers, and why valuable plant and stock change the rescue options.
• Professional services How staff costs, unbilled work and reliance on a few clients put agencies and consultancies under pressure, and what can be saved.
• Recruitment Why paying workers weekly while clients pay on long terms sinks profitable agencies, and what to do before payroll fails.
• Retail How online competition, rent, rates and stock squeeze retailers, and when a CVA or administration can restructure a store estate.
• Transport and logistics How fuel costs, vehicle finance and personal guarantees raise the stakes for haulage and logistics directors.

Free tools and calculators

• Can I Pay Myself? Director Salary and Dividend Checker When your company is struggling, can you still take a salary or dividends? Understand the rules and the personal-liability risk.
• Cash Flow Runway Calculator Work out how many weeks of cash your company has left at its current burn rate. Instant result, no email required.
• CVL vs Administration vs Strike Off Chooser Answer a few questions to see which company closure or rescue route is likely to fit your situation: CVL, administration or strike off.
• Director Loan Account Tax Calculator (s455) Estimate the section 455 tax charge on an overdrawn director loan account, and understand what happens to the balance if the company is liquidated.
• Director Redundancy Calculator Many director-employees can claim statutory redundancy when their company is liquidated. Estimate your claim instantly, no email required.
• Free Tools for Directors Free, instant calculators and checkers for UK company directors in difficulty. No email needed. Insolvency test, cash flow runway, director redundancy and more.
• HMRC Time to Pay Affordability Calculator See what monthly figure HMRC is likely to accept on your company tax arrears, and whether a Time to Pay arrangement is realistic.
• Is My Company Insolvent? Free Test Apply the two legal tests for company insolvency, the cash-flow test and the balance-sheet test, in plain English. Instant result, no email required.
• Liquidation Cost Calculator A realistic estimate of what a Creditors Voluntary Liquidation costs, based on the size and complexity of your company.
• Personal Guarantee Exposure Checker Add up what you have personally guaranteed across loans, leases and supplier accounts, so you know your real exposure if the company fails.
• Strike Off Objection Risk Checker Will HMRC or a creditor block your DS01 strike off? Check the risk before you file, and find out if a liquidation is the proper route.
• Winding-Up Petition Timeline Tool Enter your petition dates to see the critical windows, including when your bank is likely to freeze the company account. Time sensitive.
• Wrongful Trading Red-Flag Checker Self-assess your wrongful trading and personal-liability risk as a director, against the recognised red flags. Instant, confidential, no email.

Templates and letters

• Board Resolution Template: Insolvency Decision Minutes Free board minutes template recording a company's decision to take insolvency advice and convene members, with s.84, s.99 and s.248 references.
• Company Can't Pay Wages: Director Checklist Director checklist when a UK company cannot pay wages: immediate actions, wrongful trading warning, and the RPS route that pays staff (gov.uk verified).
• Creditor Holding Letter Template (UK Company) Free creditor holding letter template for UK directors: buy a short, honest pause with a supplier or lender, commit to a date, and know what not to promise.
• CVL Documents Checklist: What Your IP Will Ask For The documents an insolvency practitioner asks for in a CVL: books and records, asset list, creditor list, and employee details for RPS claims.
• Employee Redundancy Letter Template (Insolvency) Free redundancy letter template for insolvent UK companies, with the verified RPS claim route employees need: CN number, deadlines, RPS contact.
• Free Letter Templates and Checklists Free director templates for UK company distress: HMRC Time to Pay, creditor holding letter, board minutes, CVL documents, petition response.
• HMRC Time to Pay Proposal Letter Template Free HMRC Time to Pay letter template for UK companies: what HMRC wants to see (cause, affordability, realistic offer), current phone routes, no email gate.
• Winding-Up Petition Response Checklist What to do at each stage of a winding-up petition: the 7-business-day pre-advert window, the bank freeze, your options, and the hearing. Rule 7.10 verified.

Data and trackers

• Bounce Back Loans What Bounce Back Loan arrears and default mean for a company director, and when personal liability arises.
• Director disqualifications The most common grounds for UK director disqualification, and why a strike off does not avoid scrutiny, from Insolvency Service and Companies House sources.
• HMRC tax debt How much tax debt is owed to HMRC, from National Audit Office reporting, and where company tax arrears build and put directors at risk.
• How many IPs How many Licensed Insolvency Practitioners there are in the UK, who regulates them, and how to check one is licensed.
• Insolvency procedures The four main company insolvency procedures in England and Wales, what each one is, and how common each was in 2025, from official Insolvency Service statistics.
• Late payment How late UK small businesses are paid, from FSB research, and how to check a named company's own payment record on the government Payment Practices Reporting service.
• Pub closures How many UK pubs are closing, from BBPA figures and the CGA by NIQ Hospitality Market Monitor. Every figure dated and sourced.
• Strike-off objections How company strike-off applications get objected to and suspended, and by whom, from The Gazette and Companies House guidance.
• UK Business Distress Data Official UK business distress data in one place: the latest company insolvency figures, the 2025 annual breakdown, winding-up petitions and pub closures, plus reference guides.
• UK company insolvencies by type: the 2025 breakdown How England and Wales company insolvencies split by type in 2025: creditors' voluntary liquidations were 77%, compulsory liquidations 16%, administrations 6% and CVAs 1%.
• UK Company Insolvency Tracker The latest official monthly company insolvency figures for England and Wales, from the Insolvency Service.
• Winding-up petitions The latest winding-up petitions advertised in The Gazette, the petition timeline, and why HMRC is among the most active petitioners.

Get help and reference

• Accreditations and Registrations
• Can a company in debt pay a dividend? Dividends can only be paid from distributable profits. Paying them while the company is in debt or insolvent can make them unlawful and personally repayable by directors.
• Can I claim director redundancy if my company is liquidated? Many directors can claim statutory redundancy from the Redundancy Payments Service when their company is liquidated, if they were a genuine employee.
• Can I still pay wages after a winding-up petition? After a winding-up petition, paying wages from the company account is risky: most payments can be void unless the court validates them. Get a validation order.
• Company Insolvency Questions Answered Straight answers to the questions worried directors actually ask about insolvency, liquidation, HMRC debt, personal liability and closing a company.
• Compare Company Closure and Rescue Options CVL vs CVA vs administration vs strike off vs MVL compared in one table: cost, control, effect on debts and what each is best for.
• Does company insolvency affect my credit rating? Your limited company's insolvency does not automatically appear on your personal credit file. Where it can reach you: personal guarantees, CCJs and directorship records explained.
• Editorial standards
• Get help now
• Insolvency Glossary Plain-English definitions of the insolvency and company-rescue terms directors come across, from CVL to wrongful trading.
• Jessica Barker, Insolvency Practitioner Jessica Barker is an Insolvency Practitioner (IP No. 32050, ICAEW) and Associate Director at Xeinadin Corporate Recovery, Manchester.
• Our Editorial Team Who writes the guidance on this site: our editorial desk, working from official UK sources. Information only, not advice.
• Repaying a director's loan or BBL: a preference? Repaying yourself, family or a loan you personally guaranteed before insolvency can be a preference, reversed under section 239. Bounce Back Loans carried no personal guarantee.
• Should I close my limited company or make it dormant? Dormancy keeps the company alive with minimal filings; closure ends it for good. How to choose, what dormant actually requires, and when debts rule dormancy out.
• UK Company Insolvency Statistics Key UK company insolvency and business distress statistics, each with its official source and release date.
• What happens to a director of a company in liquidation? When a company goes into liquidation the director's powers end, their conduct is reviewed, and in most cases life moves on: what actually happens, step by step.
• What happens when you get in touch
• Will liquidating my company affect my personal mortgage? Liquidating a limited company does not directly affect your mortgage, but personal guarantees, an overdrawn director's loan or misconduct can reach you.

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