Is your business connected to the construction industry?

The construction and related industries are having a bleak time at the moment.

Both commercial property and housebuilding are affected, with knock-on effects to landlords.

London office values have fallen 26% in the City and 14% in the West End and analysts believe prices have a lot further to fall.

Insolvencies of real estate investment companies have increased 16% in the past 12 months.

In housebuilding, UK construction activity contracted in October, although slightly less so than in September, according to the S&P Global/CIPS UK construction PMI.

One company, Persimmon, has reported a 37% drop in home completions compared to last year.

If you fear your business is on the brink of insolvency, HMRC has just published guidelines and advice for insolvency practitioners helping businesses wanting support for repayments.

However, there is a caveat in the details published on the HMRC website:

“HMRC will only offer support to companies to restructure where we believe you have a realistic chance of succeeding. If we do not believe you have a realistic chance of succeeding, we will work with you to try and find other ways to repay your debt to HMRC.”

Above all, your business must provide a “true asset and liability position”.

This is only one of several key requirements for information to assess the position.

If you are thinking of a restructure take action now.

You can call or message us at K2 for an initial informal discussion but we would also advise you have an accurate picture of your financial position.

We have a free tool to help you with this and you can download it here:

Don’t wait to get help.

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