We are asking local businesses “How are your Christmas Sales?” as we have been contacted by a number of business owners who say they were banking on Christmas sales to turn their fortunes around, but due to rocketing food inflation and uncertainty about the outlook for the UK economy, sales have been sent tumbling to their first year-on-year fall since 2013.
In many cases stock has been purchased ready for the Christmas rush but sales have not been as strong as anticipated as cautious shoppers choose to spend their hard earned cash online.
When businesses are struggling with cashflow, owners need to be aware of wrongful or fraudulent trading.
Wrongful trading occurs when the directors continue to operate when they knew or ought to have known there is no prospect of paying all their debts as they fall due. This is quite onerous and the protection of limited liability can fall away and directors become personally liable for all liabilities from the date wrongful trading was established. Fraudulent trading occurs when you choose who you pay but can’t pay everyone.
If your Christmas sales are not as you had planned, perhaps we should chat?
Unless certain procedures are followed directors could find themselves in hot water. As a director of a business, you have a legal responsibility to ensure the company is not trading whilst insolvent. Obtaining early advice is imperative.
How we can Help
If you are a struggling business don’t struggle on hoping things will get better on their own. Whether you are a limited liability company, a partnership or an individual we offer a FREE Business Health Check. We know from experience that the earlier you get professional advice the more options you have. All services are tailored to meet your specific needs and we will always consider a range of solutions before advising which is best suited to you.
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