<h2>Short answer</h2>
<p>Add a 40-60 word direct answer to: <strong>What payments are illegal before liquidation?</strong></p>
<h2>Plain-English explanation</h2>
<p>Explain the topic clearly for UK company directors. Keep the tone calm, neutral, and practical.</p>
<h2>Why this matters for directors</h2>
<p>Explain why this issue matters now, including any risk to:</p>
<ul>
<li>continued trading</li>
<li>creditor relationships</li>
<li>director duties</li>
<li>timing of decisions</li>
</ul>
<h2>What to check now</h2>
<p>Use a short checklist such as:</p>
<ul>
<li>current cash position</li>
<li>unpaid creditors</li>
<li>HMRC exposure</li>
<li>legal notices received</li>
<li>immediate deadlines</li>
</ul>
<h2>What usually happens next</h2>
<p>Explain the likely next steps or branches:</p>
<ul>
<li>informal pressure</li>
<li>formal insolvency option</li>
<li>professional advice usually needed</li>
<li>when urgency increases</li>
</ul>
<h2>Related guides</h2>
<ul>
<li>/guides/director-personal-liability</li>
<li>/guides/wrongful-trading</li>
<li>/guides/creditors-voluntary-liquidation</li>
</ul>
<h2>Assess your situation</h2>
<p>If you are unsure how this applies to your company, start the assessment to understand your current position.</p>


How preferential payments can create risk for directors before liquidation.