Financial pressure is a tax problem too
When a company is struggling, or when shareholders want to close one down, every route has tax consequences: how final funds reach shareholders, what happens to a director’s loan account, what is owed to HMRC and how the last accounts are prepared. Decisions made in a hurry, without the numbers, cost the most.
TaxDigit has built a professional network so directors do not face this alone. Through our partnership with CRG, an independent insolvency and financial recovery practice led by licensed Insolvency Practitioners regulated by the Insolvency Practitioners Association, TaxDigit clients have direct access to formal insolvency advice while we keep the accounts, tax and HMRC position under control.
Talk to TaxDigit in confidence
What this network gives TaxDigit clients
Early warning from your accounts
TaxDigit’s management accounts and bookkeeping show cash flow strain, HMRC arrears and creditor pressure early, while there are still options.
Rescue before closure
Where a business can be saved, administration or a company voluntary arrangement is considered with licensed practitioners, alongside TaxDigit’s forecasts and HMRC position.
Closing a solvent company
When a healthy company reaches the end of its life, a members’ voluntary liquidation is run by licensed practitioners while TaxDigit prepares the final accounts, tax returns and clearances.
When a company cannot pay its debts
A creditors’ voluntary liquidation or other formal process is handled by licensed practitioners, with TaxDigit supplying accurate records and the tax position.
Directors’ personal exposure
Overdrawn director’s loan accounts, personal guarantees and personal tax reviewed early, so directors understand where they stand.
One point of contact
You stay with TaxDigit. We make the introduction, share what is needed with your consent, and keep the tax side on track to the end.
A new capability for TaxDigit
Insolvency work must be carried out by a licensed Insolvency Practitioner. Until now, TaxDigit clients facing that decision had to find one on their own, often at the most stressful moment for their business. With a licensed insolvency practice in our network, TaxDigit can guide a client from the first warning signs to a clean outcome, whether that is recovery, restructuring or closure.
It builds on TaxDigit’s existing work in management accounting, restructuring, corporation tax and virtual finance director support, so the adviser who already knows your numbers stays involved throughout.
How it works
1. You tell us what is happening
Cash flow, creditor pressure, HMRC arrears, or a decision to close. The conversation is confidential.
2. We bring your figures up to date
TaxDigit prepares current accounts and the tax position, so decisions are based on real numbers.
3. We introduce licensed practitioners
With your consent, TaxDigit introduces the insolvency practice in our network and shares what they need.
4. The right route is agreed
Rescue, restructuring, a solvent closure or a formal insolvency process, chosen with the tax effect in view.
5. TaxDigit handles the tax side to the end
Final accounts, corporation tax returns and HMRC matters dealt with, and personal tax for directors where needed.
When to talk to TaxDigit
- Cash flow is tight and HMRC or suppliers are pressing for payment.
- You are considering closing a solvent company and extracting its funds.
- A company you direct may not be able to pay its debts.
- You have an overdrawn director’s loan account or have given personal guarantees.
- You are owed money by a business that has failed.
What TaxDigit is, and what it is not
We are chartered certified accountants, not insolvency practitioners. TaxDigit is a UK accountancy firm regulated by ACCA, supervised by HMRC for anti-money-laundering purposes (MLR registration XKML00000211873) and registered with Companies House as an ACSP. We do not accept insolvency appointments.
Insolvency advice comes from licensed practitioners. Formal insolvency advice and appointments are provided by CRG under its own engagement terms and regulation by the Insolvency Practitioners Association.
Act early. Directors of a company that may be insolvent must take its creditors’ interests into account. Taking advice early keeps more options open.
We coordinate, with your consent. We share information with our network only when you ask us to, and only what is needed.
Frequently asked questions
Can my accountant close my limited company?
An accountant can prepare the final accounts and tax returns and help with a voluntary strike-off where that route is suitable, but a members’ or creditors’ voluntary liquidation must be handled by a licensed Insolvency Practitioner. TaxDigit handles the accounting and tax side and introduces the licensed practitioners in our network where a liquidation is needed.
What are the tax implications of closing a company?
They depend on how the company is closed and how funds are paid out to shareholders. Distributions in a liquidation and dividends paid before it can be taxed differently, so the route should be planned with the tax outcome in view. TaxDigit advises on the tax side before any decision is made.
What happens to an overdrawn director’s loan account in insolvency?
An overdrawn director’s loan account is usually treated as money owed to the company and can be pursued by a liquidator. TaxDigit reviews the loan account and its tax position early, so directors understand their exposure before a formal process begins.
Can a struggling company be rescued instead of closed?
Sometimes. Administration and company voluntary arrangements are formal rescue routes, and an informal restructuring can also work. Licensed practitioners advise on the formal options; TaxDigit prepares the forecasts and tax position any rescue depends on.
Does TaxDigit act as an insolvency practitioner?
No. Insolvency appointments can only be taken by a licensed Insolvency Practitioner. TaxDigit introduces clients to CRG, a licensed insolvency practice in our network, and handles the accounts, tax and HMRC side.
How much does it cost?
TaxDigit quotes its own fees for the accounting and tax work before you commit. The insolvency practice agrees its fees with you directly.
How do I get started?
Call TaxDigit on 01483 230 777 or email info@taxdigit.co.uk. The first conversation is confidential, and we will set out the figures and the options before anything is decided.
Related TaxDigit services: Business restructuring, Corporation tax, Capital gains tax, Management accounting, Virtual CFO. Still deciding? Talk to a chartered certified accountant.
Rescue. Restructure. Close cleanly.
See the figures, the tax effect and every option in front of you before you decide.
Book a consultation