Control new commitments after the business stops trading
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Stopping normal trading does not stop every person or system from creating a new commitment. Give the remaining team a clear rule for aftercare spending, including what they may request and who must approve it.
Use the rule alongside professional advice about the business's financial and legal position. It is an internal control, not permission to prefer a creditor, distribute money or enter a transaction the business is not authorised to make.
Define the purpose before the amount
A small purchase can restart an activity the owner intended to end. Ask what the proposed commitment supports: an existing case, necessary records access, an agreed premises task or fresh customer work.
A practical rule records:
- The limited purposes for which a request may be raised.
- The person who checks the need and relevant existing commitments.
- Who has authority to approve, with any limits confirmed by advisers.
- Requests that must be referred, including new trading work or unclear ownership.
- Where the decision and supporting evidence are stored.
- When the arrangement will be reviewed.
Avoid inventing a universal spending threshold. Authority depends on the actual organisation and circumstances. A sum below an internal limit can still require advice because of its purpose or terms.
Find the commitments that happen without a meeting
Review recurring orders, saved purchasing instructions and habits that survived the last shift. A supplier may continue replenishment because nobody changed the agreed arrangement. Use the automatic replenishment review to establish the facts and the authorised next step.
In a fictional closure, an aftercare contact orders fresh production consumables to help with a new enquiry. The purchase seems minor but assumes the business will accept work it has already stopped offering. The correct referral is a commercial decision about the enquiry, not merely approval of a low-cost order.
The new-work response guide helps keep that boundary clear. The contact should have a useful answer without quietly reopening the service.
Review the arrangement as the remaining work changes
Keep approved commitments visible in the aftercare budget, including their purpose and expected duration. Ask the accountant how the actual transactions should be recorded. Do not treat a budget allowance as proof that a purchase has been authorised.
When a case ends, review whether its supporting service is still needed and what the contract requires. A reduced workload may support a change, but it does not automatically end an agreement.
Equipment still used for aftercare should have a named business purpose. When that purpose ends and the asset is released, discuss it with UK Auction Group. Keep the disposal instruction separate from any assumption about how the proceeds will be used.
At the next review, examine actual commitments raised since trading stopped. An unexplained new order is a specific question to resolve, not a routine cost to hide inside the old trading budget.
Sources
This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.