Categories:Tax

Revealed: Unpaid tax bills forced Manches' administration

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Readers' comments (13)

  • Would anyone care to clarify what exactly amounts to trading whilst insolvent? (only slightly rhetorical)

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  • I thought one of the 10 professional principles was to run a firm in a financially responsible manner. Not paying VAT (which after all is tax collected on behalf of HMRC and not the firm's money) would appear to breach this principle. Can we have some guidance from the SRA as to whether non payment of VAT is acceptable or not?

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  • So what on earth are Penningtons doing buying it?

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  • ok, glad someone's asked the question about "trading while insolvent" but why expect any clarity of vision from management around a macro issue like that when they also had ca 50% WIP over 120 days?

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  • The penitent Manches kneels before the administrator .... kneel !!

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  • Apologies for the shocking typing earlier, I've given myself a good talking to.

    What are Penningtons doing buying it? We'll they're buying a fair amount i.e. £2.4M worth of good WIP for £500k and (potentially) bringing in a raft of clients.

    'Cuckoo' a Pennigntons partner into the existing client's nest and then get rid of the Manches partners who were part of the problem. This of course will be slightly easier if they're facign bankruptcy petitions.

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  • we seem to be becoming a profession without any shame.

    with the Banks and HMRC suffering losses as well as other creditors, no wonder the insurance market is disappearing.

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  • It will be interesting to see how many of the former Manches partners are partners in the merged entity in a year's time.

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  • I am still trying to come to terms with £2.3 million or roughly half the WIP being 120 days old or older. This is a disgraceful situation and clearly points to significant failures of management and governance. No law firm should have any WIP older than 120 days and with effective systems can get it down to well below 60. I have seen below 40 but not often. The message that this kind of lax operation sends to client is truly awful. In the main clients have only one measure of the quality of the services they buy – how business-like is the firm as most are unable to determine whether the advice they receive is on the spectrum of adequate to excellent. Therefore if business practices are sloppy what could it say for the quality of legal service? Hopefully this will be a wakeup call to the wider profession and see effective management practice more widely applied than here. It matters not whether the structure is incorporated or a partnership good management is a central feature of for success.

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  • I'm not sure that the comments regarding WIP are entirely correct. What happens if a firm is doing a lot of litigation on no win, no fee deals, and having to wait for settlements in divorce cases. In the real world, there are a lot of clients who can't/won't pay monthly.

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