There seems to be a general consensus that once the courts in Northern Ireland reopen again after the summer recess that there will be a large spike in the number of businesses filing for insolvency.
The Courts Were Closed Due To Coronavirus Crisis
During April and May the courts were closed due to the coronavirus crisis so businesses were not able to file for insolvency. Whether that was a good or bad thing is a moot point, but at least it gave time for businesses to consider their options and make some sort of plan, however flexible it had to be, for the future.
In fact, in Northern Ireland, there were just 28 business insolvencies between March 24 and June 30th of this year, which compares favourably to the previous year when there were more than 100.
In Belfast just nine companies went to the wall compared with 56 the previous year, and only in Newry, Mourne and Down did the numbers rise up from four to seven.
Could September See A Wave Of Insolvencies
But although the Chancellor of the Exchequer Rishi Sunak has made big efforts to save large parts of the economy through the creation of the furlough scheme, this scheme is slowly coming to an end. So September could be the time when some companies decide they can no longer carry on trading in the present economic circumstances and file for bankruptcy.
The big worry is that there could be a huge number of businesses folding in September which would be a huge, huge blow to the economy and more importantly people`s livelihoods here in Northern Ireland. The economic and social impact this would wreak would be with us for many years to come.
On A Positive Note New Businesses Are Starting Up
On a more positive note many new businesses have started up over the same period, with over 2,000 companies registered over here between April and June. At least the entrepreneurial spirit is very much alive and kicking here in Northern Ireland and many people are finding new, creative ways to make a living. Hopefully many of these new businesses will grow and thrive and take up some of the slack with employing people who may lose their jobs as some other businesses fold.
At WHR Accountants we have helped many start up businesses to find their feet, helping with all the start up procedures, a business plan, their taxation and general accountancy issues. We have helped them to get off to a successful start and later to grow and prosper. So if you have a new business, or you are thinking of starting up one in the not too distant future, get in touch with the WHR team and we will be glad to offer you our advice. Contact us on 028 3752 2909.