itsnotme
An a great confusion will come upon the land ..
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Post by itsnotme on Nov 10, 2018 13:13:02 GMT
I seem to remember I have read it somewhere (but can't find it anymore) or maybe I just dreamed it up when I was not quite myself, that since the recent budget announcement HMRC will claim floating charges right after employees rights in case of business insolvencies (pushing itself from the end of the queue to place 3). That may impair recovery actions for p2p providers?
Can somebody confirm the fact?
Can somebody explain what the consequences would be for unsecured or secured p2p lending ?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 10, 2018 13:30:32 GMT
I seem to remember I have read it somewhere (but can't find it anymore) or maybe I just dreamed it up when I was not quite myself, that since the recent budget announcement HMRC will claim floating charges right after employees rights in case of business insolvencies (pushing itself from the end of the queue to place 3). That may impair recovery actions for p2p providers? Can somebody confirm the fact? Can somebody explain what the consequences would be for unsecured or secured p2p lending ? From 2020, HMRC will become a prefential creditor in relation to sums collected by business on HMRC behalf but not sums payable by the business itself. So employee PAYE, NI & VAT owed to HMRC will rank ahead of floating charges in insolvency cases but not employers NI or corporation tax.
For secured lending the consequences will be that any loan where full recovery isnt achieved through sale of fixed charge assests, the residual debt covered by any floating charge would rank behind these elements of any HMRC claim, for unsecured lending it would mean these elements of HMRC claim would rank ahead of the general creditor pool rather than pari passu.
General impact is expected to relatively low.
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elliotn
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Post by elliotn on Nov 10, 2018 15:00:31 GMT
Typically unsecured p2p SME lending (think FC, C2F, half of LC) relies on personal director guarantees so that would sit outside company recoveries as normal and rely on director’s personal assets (but expect anything sizeable to be in the wife or trust’s name  ). |
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zlb
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Post by zlb on Nov 10, 2018 17:27:18 GMT
Typically unsecured p2p SME lending (think FC, C2F, half of LC) relies on personal director guarantees so that would sit outside company recoveries as normal and rely on director’s personal assets (but expect anything sizeable to be in the wife or trust’s name ). If anything sizable is moved, after a loan is agreed eg by c2f can't that be tracked in the same way that assets are examined for IHT or divorce settlements? If someone moved an asset purely so that they didn't have to settle a debt under guarantee, wouldn't that be dealt with accordingly?
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elliotn
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Post by elliotn on Nov 11, 2018 8:13:49 GMT
Typically unsecured p2p SME lending (think FC, C2F, half of LC) relies on personal director guarantees so that would sit outside company recoveries as normal and rely on director’s personal assets (but expect anything sizeable to be in the wife or trust’s name ). If anything sizable is moved, after a loan is agreed eg by c2f can't that be tracked in the same way that assets are examined for IHT or divorce settlements? If someone moved an asset purely so that they didn't have to settle a debt under guarantee, wouldn't that be dealt with accordingly? I would think so. But I’d also expect this to be in place ahead of personally guaranteed borrowing.
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greatmarko
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Post by greatmarko on Nov 12, 2018 11:14:36 GMT
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Post by dan1 on Apr 29, 2019 7:46:28 GMT
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