01275 859143 Testimonials
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FCA Authorised & Regulated
We work for you, not your creditors

When the Business Debt Becomes Yours

Directors are not automatically protected by limited liability. An overdrawn loan account, dividends paid when the company couldn’t afford them, or simply how the company is closed — any of these can create a personal liability you weren’t expecting. We help directors understand their real exposure and find the best route through it.

For professional advisers

Most directors don’t discover their personal exposure early enough — and a liquidator won’t raise it in pre-appointment discussions. Once appointed, the letter arrives and the options have already narrowed. We focus on personal exposure from the first conversation. The earlier we’re involved, the more we can do.

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Concerned about your personal exposure?

No charge for the initial conversation. No obligation to proceed. Completely confidential.

Call 01275 859143

What we have achieved for directors and business owners

  • Director’s loan account demand avoided entirely through dissolution
  • Liquidator’s DLA claim reduced from over £95,000 to £20,000 through detailed financial review and negotiation
  • Liquidator’s claim of £2.8 million based on misrepresentation of ten years of historic audited accounts settled for £550,000 — fraud allegations averted
  • Expenses recovery claim successfully challenged — opening figure reduced substantially before settlement
  • Company closed without a liquidator appointed — no investigation, no conduct report
  • Personal guarantee negotiated and settled — bankruptcy avoided
  • Director disqualification investigation navigated — ban reduced from potential of 10 years to 4 years, and fine of £60,000 written off
  • Home and family finances protected from recovery action
  • Directors released from personal exposure cleanly and with certainty
£22k+ Saved
Read NIM Ltd’s story →
“I was about to sign the liquidator’s engagement letter but I’m so glad I spoke with Lightside first. That conversation opened my eyes and I’m pleased that I have you on my side. You’ve made the whole process far less stressful than friends had told me it would be, and my relief now that it is resolved is indescribable.”
Director, referred by a personal contact

How we work with you

You make contact

We start with a conversation — no charge, no obligation. You tell us what’s happened or what you’ve been told. We listen without judgement.

We map the picture

We establish your actual position — what the company owes, what you may owe personally, and what routes are genuinely available to you and the company. We don’t start from an assumption about the outcome.

You choose

We set out the options clearly, with an honest view of what each one means for you. The decision is yours. We make sure it’s an informed one.

We handle it

We provide Director Support. We advise you and manage the process — handling correspondence, queries, and negotiations on your behalf.

Director and business owner cases

Real situations, real outcomes. Each case reflects a director who faced a specific form of personal exposure.

Business — Personal Liability
The Liquidators Said He Owed £95,000. We Settled It for £20,000.
Ken — DLA claim challenged and reduced by 79%
79%Reduction
The Situation

“I assumed that if an insolvency practitioner presented a figure, it was the figure. I had no idea I had the right to challenge it.”

What We Did

Ken’s estate agency had entered liquidation and the joint liquidators asserted a Director’s Loan Account balance of £95,212 was recoverable from him personally. Lightside reviewed the claim alongside his accountant, forensically reconstructing the historic records. The review identified business costs incorrectly treated as personal drawings, unpaid salary entitlements, funds introduced by the director, and repayments not reflected in the liquidators’ position. A formal challenge was prepared and presented. After negotiation, the matter settled in full and final terms for £20,000 — a reduction of approximately 79%. The family home was protected and no further recovery action remains outstanding.

Adviser: Khurm Arshad.
Business — Personal Liability
The Liquidator Didn’t Mention the £30,000 — We Did
NIM Ltd — DLA demand avoided through dissolution
£22k+Saved
The Situation

“Our marriage had broken down and with it any real communication about the business. I still had legal responsibilities. Walking away wasn’t as simple as I wanted it to be — and nobody mentioned a personal liability. We had no idea that it would need to be paid.”

What We Did

Nimo and Tanya were hours from signing a liquidation engagement letter when they were referred to us by a previous client. The company owed £7,800 to creditors — but the liquidation route would have triggered a personal demand for the £30,000 overdrawn director’s loan account, which the firm already engaged had not disclosed. We confirmed that voluntary strike-off remained available, settled all creditors in full for £7,800, submitted the strike-off application, and the company was removed from the register without a liquidator ever being appointed. No investigation, no conduct report, no DLA demand. Nimo saved over £22,000 compared with the liquidation route.

Adviser: Priti Shah. Referred by a previous client.
Business — Personal Liability
No Funds for Liquidation — Company Dissolved, Investor Repaid
CAU Ltd — liquidation avoided, no personal liability claim
Liq.Avoided
The Situation

“We hadn’t set out to do anything wrong — we just hadn’t understood the rules. But when the accountants told us what we’d done, I realised my name was attached to an investor’s £50,000 and a tax debt we couldn’t pay. I didn’t know what that meant for me personally.”

What We Did

Charlie and Sam were referred to us by their accountants at Lawrence Grant LLP once it was clear the company was in serious difficulty — illegal dividends paid from non-existent profits, an unpaid HMRC corporation tax liability, and an investor owed £50,000. A liquidator would have been required to pursue the directors personally for the dividend payments under the Companies Act 2006. We assessed whether dissolution remained available, confirmed the conditions were met, and structured a route that avoided that outcome entirely. The investor was repaid directly by the directors. The HMRC corporation tax debt was extinguished on dissolution. No insolvency practitioner was appointed, no investigation of director conduct took place, and no personal liability claim arose from the dividend payments.

Adviser: Priti Shah. Referred by Lawrence Grant LLP.
Business — Personal Liability
A £360,000 Fraud Judgment That Could Have Followed Two Directors Personally
Mr. D & Mr. J — HMRC fraud judgment settled, no criminal proceedings
£250kSettled
The Situation

“My brother Derek and I had run our business for over thirty years without a single problem. Then one transaction turned into a VAT fraud allegation from HMRC. We lost at tribunal, and suddenly a judgment that could follow us personally.”

What We Did

We reviewed the company’s position and found total liabilities of over £400,000, including a £360,000 HMRC debt already established as fraud at tribunal. Because HMRC could pursue the directors personally if the debt went unpaid, we worked with the liquidator to negotiate a global settlement — a net repayment of £250,000 — securing HMRC’s assurance that no personal criminal proceedings would follow. The company was wound down cleanly through the CVL within twelve months.

Adviser: Priti Shah. Referred by Price Mann Ltd, Chartered Accountants.
Business — Personal Liability
A Ten-Year Director’s Ban Reduced to Four — and a £60,000 Penalty Avoided
Mr. S — disqualification undertaking reduced, civil penalty dropped
6 yrsSaved
The Situation

“I had been answering the wrong questions. And now I was being told I couldn’t be a director for ten years.”

What We Did

We compiled a comprehensive brief distinguishing between two separate Border Force raids and demonstrating that Mr. S’s incorrect information submissions arose from honest confusion, not misconduct. The brief was passed to specialist solicitors MD Law to frame the formal appeal with precision. The Insolvency Service accepted our representations in full — reducing the voluntary undertaking from ten years to four and dropping the civil penalty entirely.

Adviser: Priti Shah. Referred by Tidy Money – Chartered Accountants. Worked with MD Law.
For professional advisers
Are you a professional adviser?
Referring a director client facing personal liability? Early referral almost always produces a better outcome.

We work with accountants, solicitors and IFAs

If you’re an accountant, solicitor or IFA with a director client facing personal liability — from an overdrawn loan account, a liquidator’s claim, an expenses recovery demand, a personal guarantee, or a disqualification investigation — we can help.

Early referral almost always produces a better outcome. Once a liquidator is appointed, options narrow quickly. We focus on the director’s personal position from the first conversation, and work alongside you throughout.

We are FCA authorised and regulated. Your client relationship is protected throughout. Speculative, anonymised enquiries are welcome — no commitment is required at that stage.

Liquidator has been appointedThe director has received a letter asserting a DLA balance or expenses recovery claim. We review the figures and advise on the right response before anything is agreed.
Company is about to enter liquidationThe director has been told liquidation is the only route but personal exposure has not been addressed. We assess the full picture before anything is signed.
Disqualification investigation underwayThe Insolvency Service is in contact. We structure the director’s response before solicitors are formally instructed, often at a fraction of the cost of going straight to legal.
Personal guarantee being called inA lender is pursuing the director personally. We handle personal guarantee negotiations directly and have settled guarantees at significant reductions to face value.

Talk to us about your client

Initial referral discussions are completely confidential. You do not need your client’s permission to make a speculative enquiry. Anonymised details are fine at this stage.

Call 01275 859143

Cases referred by professionals

Business — Personal Liability
The Liquidators Said He Owed £95,000. We Settled It for £20,000.
Ken — DLA claim reduced by 79%, family home protected
79%Reduction
The Situation

“I assumed that if an insolvency practitioner presented a figure, it was the figure. I had no idea I had the right to challenge it.”

What We Did

Ken’s estate agency had entered liquidation and the joint liquidators asserted a Director’s Loan Account balance of £95,212 was recoverable from him personally. Lightside reviewed the claim alongside his accountant, forensically reconstructing the historic records. The review identified business costs incorrectly treated as personal drawings, unpaid salary entitlements, funds introduced by the director, and repayments not reflected in the liquidators’ position. A formal challenge was prepared and presented. After negotiation, the matter settled in full and final terms for £20,000 — a reduction of approximately 79%. The family home was protected.

Adviser: Khurm Arshad.
Business — Personal Liability
The Liquidator Didn’t Mention the £30,000 — We Did
NIM Ltd — DLA demand avoided, director saved over £22,000
£22k+Saved
The Situation

“Our marriage had broken down and with it any real communication about the business. I still had legal responsibilities. Walking away wasn’t as simple as I wanted it to be — and nobody mentioned a personal liability. We had no idea that it would need to be paid.”

What We Did

Nimo and Tanya were hours from signing a liquidation engagement letter when they were referred to us by a previous client. The liquidation route would have triggered a personal demand for the £30,000 overdrawn DLA, which the firm already engaged had not disclosed. We confirmed voluntary strike-off remained available, settled all creditors for £7,800, and the company was removed from the register without a liquidator ever appointed. No investigation, no conduct report, no DLA demand.

Adviser: Priti Shah. Referred by a previous client.
Business — Personal Liability
No Funds for Liquidation — Company Dissolved, Investor Repaid
CAU Ltd — liquidation avoided, no personal liability claim
Liq.Avoided
The Situation

“We hadn’t set out to do anything wrong — we just hadn’t understood the rules. But when the accountants told us what we’d done, I realised my name was attached to an investor’s £50,000 and a tax debt we couldn’t pay. I didn’t know what that meant for me personally.”

What We Did

Referred by Lawrence Grant LLP, we confirmed dissolution remained available despite the illegal dividend payments and structured a route that avoided a liquidator pursuing the directors personally under the Companies Act 2006. The investor was repaid directly. The HMRC corporation tax debt was extinguished on dissolution. No insolvency practitioner was appointed and no personal liability claim arose.

Adviser: Priti Shah. Referred by Lawrence Grant LLP.
Business — Personal Liability
A £360,000 Fraud Judgment That Could Have Followed Two Directors Personally
Mr. D & Mr. J — HMRC fraud judgment settled, no criminal proceedings
£250kSettled
The Situation

“My brother Derek and I had run our business for over thirty years without a single problem. Then one transaction turned into a VAT fraud allegation from HMRC. We lost at tribunal, and suddenly a judgment that could follow us personally.”

What We Did

With a £360,000 HMRC debt established as fraud at tribunal, personal exposure for both directors was live if it went unpaid. We worked with the liquidator to negotiate a global settlement — a net repayment of £250,000 — securing HMRC’s assurance that no personal criminal proceedings would follow. The company wound down cleanly through CVL within twelve months.

Adviser: Priti Shah. Referred by Price Mann Ltd, Chartered Accountants.
Business — Personal Liability
A Ten-Year Director’s Ban Reduced to Four — and a £60,000 Penalty Avoided
Mr. S — disqualification undertaking reduced, civil penalty dropped
6 yrsSaved
The Situation

“I had been answering the wrong questions. And now I was being told I couldn’t be a director for ten years.”

What We Did

We compiled a comprehensive brief distinguishing between two separate Border Force raids and demonstrating that Mr. S’s incorrect information submissions arose from honest confusion, not misconduct. The brief was passed to specialist solicitors MD Law to frame the formal appeal. The Insolvency Service accepted our representations in full — reducing the voluntary undertaking from ten years to four and dropping the civil penalty entirely.

Adviser: Priti Shah. Referred by Tidy Money – Chartered Accountants. Worked with MD Law.
FCA Authorised & RegulatedFirm Reference 676943 — your client is advised by a regulated firm throughout
Your client relationship is protectedWe work alongside you, not instead of you — your relationship with your client remains intact
Speculative enquiries are confidentialYou can discuss a client situation with us before any referral is made — no commitment required
We work at the right momentBefore the liquidator is appointed — not after. Early involvement is where we make the biggest difference
Common questions

Questions directors ask us

Not automatically — it depends on the circumstances and how the company is closed. An overdrawn director’s loan account is a debt owed to the company, and the route taken to close the company has a direct bearing on what follows. Getting independent advice before any route is chosen is essential — the difference between options can be significant, and some routes close others off. If you’ve been told liquidation is the only option, speak to us before you sign anything.

Not necessarily. Director’s loan account balances in owner-managed businesses are frequently complex — funds introduced by the director, business costs paid personally, unpaid salary entitlements, and repayments made during trading can all affect the true balance. Before accepting or responding to any figure, the claim should be reviewed in detail against the company’s full accounting history. In our experience, the opening figure and the negotiated settlement are rarely the same number.

Yes. When a liquidator investigates a company’s affairs, they review expenditure as well as loan accounts. Where expenses cannot be demonstrated to be wholly for business purposes, the liquidator may treat them as personal drawings and seek to recover those sums from the director. The scope of the claim depends on the records available and how the expenditure was categorised. As with director’s loan account claims, the opening position is not always the final one — the figures require careful scrutiny before any response is made.