01
BOUNCE BACK LOANS
Can you show the loan was applied for correctly and that the funds were used for the Company?
Covid loan misuse accounted for 71% of all Director disqualifications in 2024/25.
We'll help you understand how yours will be viewed.
COULD YOU BEDISQUALIFIEDAS A COMPANY DIRECTOR?
Your Company may be facing insolvency.
But does that mean you will be banned from acting as a Director going forward?
Directors are not automatically disqualified when a Company fails. The Insolvency Service reviews conduct, not outcome. However, there are areas that attract close scrutiny.
Get the facts before you make your next decision.
4 KEY AREAS THE INSOLVENCY SERVICE EXAMINES
02
ACCOUNTING RECORDS
Missing or incomplete records make it difficult to show that you acted responsibly.
This is one of the most common findings, even where there is no dishonesty.
Complete records are your strongest protection.
03
HMRC ARREARS
Have VAT, PAYE or Corporation Tax been left unpaid while other creditors were paid?
Uneven treatment of HMRC is a long-standing area of focus.
Early advice can help you explain the position.
04
TRADING WHILE INSOLVENT
Taking on further credit when you knew, or ought to have known, that there was no prospect of paying the liability, will be closely examined.
Directors have duties from the moment insolvency becomes likely.
Don't keep trading without taking advice first.
MOST DIRECTORS ARE NEVER DISQUALIFIED.
Understanding how your conduct will be viewed can give you real peace of mind before you act.
I'M WORRIED I'LL BE INVESTIGATED.
Don't panic. Every insolvent liquidation is reviewed as a matter of routine.
A review is not an accusation, and it does not mean you will be disqualified.
What matters is the decisions you made and whether you can explain them.
5 THINGS TO AVOIDDOING WITHOUT ADVICE
- 1
Don't pay connected parties first
Preferring yourself or family invites scrutiny.
- 2
Don't let the Company incur further credit when you know it can't be paid
It is one of the clearest signs examined after insolvency.
- 3
Don't let your records fall behind
Incomplete records are difficult to defend later.
- 4
Don't sideline HMRC
Leaving tax unpaid while paying others is noticed.
- 5
Don't wait until you're asked
The earlier you take advice, the more options you have.
HOW WE CAN HELP YOUUNDERSTAND YOUR POSITION
- How your Bounce Back Loan may be viewed
- What the Insolvency Service looks for
- Your duties once insolvency became likely
- How to evidence the decisions you made
- Why records matter to your position
- What a conduct report involves
- Whether a CVL could be appropriate
- What you should – and shouldn't – do next
SPEAK TO US FIRST.
A confidential discussion today could help protect you tomorrow.
FREE • CONFIDENTIAL • NO OBLIGATION
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