Will the high street ever be the same?
Simon Thomas, Partner at Moorfields, explores where the issues really lie for retailers and restaurateurs in wake of recent closures and CVA’s.Read more>
Moorfields appointed administrators at Trojan Taverns Ltd t/a York House Inn
Lively seaside Inn goes into administration following tough market conditions before Christmas. Simon Thomas and Fred Satow of Moorfields Corporate Recovery LLP have been appointed administrators to Trojan Taverns t/a York House Inn. The seaside pub based in West Somerset was bought by Trojan Taverns in 2007 and has been operating as a 15 room hotel, restaurant and bar. A statement by the administrators has said: “ The licensed trade sector has faced a tough couple of months following the bad weather before Christmas and the recent rise in VAT many publicans will need to remain proactive to ride out the storm”. Simon Thomas joint administrator said “We are currently exploring the possibility of a phased reopening using a specialist management agent with a view to achieving a sale as a going concern”. Any creditors or interested parties should contact Moorfields Corporate Recovery for further details. Moorfields Corporate Recovery LLP is one of the UK's leading independent firms of Restructuring and Insolvency specialists.Read more>
Retailers fear downturn after VAT rise
Retailers are set to be hit hard in 2011 as a result of the increase in the standard rate of VAT from 17.5% to 20% as the government looks to boost tax revenues to cut the UK’s debt levels. The rise which came into force on 4th January 2011, will affect any VAT registered firm that buys or sells goods or services that are subject to the standard rate of VAT. The majority of food products, children’s clothing, newspapers and magazines will continue to be zero rated. Research by the Centre for Retail Research and online shopping group Kelkoo has suggested that retail sales will fall by about £2.2bn in the first three months of the year as a result of the rise. Shoppers are unlikely to feel the effects immediately as retailers are likely to absorb the costs as part of the January sales. Phil Smith, Partner Moorfields “Retailers have had a tough time in 2010, especially towards the end of the year, when an expected increase in sales prior to the VAT increase was anticipated only to be over shadowed by the severe weather. The first three months of 2011 does not look to show a more positive outlook, the combination of the VAT rise, coupled with the public sector cuts means retailers are fearing the worse.” If you feel your business could suffer as a result of the VAT increase and would like some independent advice please contact Moorfields Corporate Recovery LLP on 0208 528 1575. Moorfields Corporate Recovery LLP is one of the UK's leading independent firms of restructuring and insolvency specialists. Its clients range from small businesses and SME's to major multinationals.Read more>
HMRC announces plans to fine up to 50,000 SME’s for record keeping failures
Thousands of small and medium-sized businesses in the UK could find themselves targets of the HM Revenue and Customs in the second half of this year. The HMRC’s “Business Records Check” campaign announced over the Christmas period, will target 40 per cent of the UK’s 4.9 million businesses which the HMRC said are likely to have unpaid tax. HMRC has said it will use its existing powers to tackle 50,000 of the worst cases each year from the second half of 2011. Penalties could be anything up to £3000 “for significant record keeping failures”. The Revenue have said there are “customer benefits” from better record keeping including “improved chances of business success”, “improved financial management” and a “reduced likihood of a subsequent compliance intervention, such as a full enquiry into their returns”. For many small businesses already struggling against the recession the announcement is likely to add more stress and administrative costs that they feel are unnecessary. If you feel your firm could suffer as a result of the HMRC fines and would like some independent advice please contact Moorfields Corporate Recovery LLP on 0208 528 1575. Moorfields Corporate Recovery LLP is one of the UK's leading independent firms of restructuring and insolvency specialists. Its clients range from small businesses and SME's to major multinationals.Read more>