Single mum and beauty salon owner - Bankrupt?

s1lvercloud

how on earth did you manage to get £190k mortgage with a loss making company?
Won't OR be interested in Co1's assets including lease?
£1200 seems a lot for childminding, even full time nursery costs for babies would just match that.

haddit

Thanks for your replies. In clarification to a couple of points raised:

1. My mortgage was secured when i used to have a PAYE job.

2. I have been working 65 hours a week sine having the business, my child minder (mum) get paid a four quid an hour per child for caring for 2 kids full time.

Incidently i have explored my options this afternoon with WTC if I were to get A PAYE job as well as keep a business interest in company 2. They will still pay me £300 a week to cover child care based on a salary of £15k .

Just exploring all my options now - but i will have to let a member of staff go tomorrow and confide all to my business patner.

Thanks again for the supportive posts and I will let you know how this unfolds.

Haddit x

skylight

Is your mother a registered childminder then???? With a proper registration number and everything???? As that sticks out to me. WTC do not pay family to look after kids, but would if she was registered. Looking at your later posts I assume she is, cos that could mess things up a bit.

Good luck with tomorrow. Its the worst part of business, letting someone go IMO.

JCS1

To resign as a Director of a Limited Companies, google for Companies House and then download form 288B, complete form, and post to Companies House in Cardiff. Make sure you get the gov.uk site. Download is free.

You can also submit on-line but may need to set up an account registration to do this.

Edit with the website:

http://www.companieshouse.gov.uk/

tigerfeet2006

Skylight the OP said earlier that her mum was a registered childminder.

Haddit, the numbers for Business Debtline and National Debtline are in my sig. Please do as the others have advised and give them a ring to go through your situation asap.

haddit

Hi All,

It has been a difficult day ! I gave a weeks notice to one of my employees - Tears for us both!

I have also telephoned Business debt line. All the advice was good, though I felt the advisor was robotic and a bit 'salesy' and told me he could only answer another question I had if I was quick!

I am still quite confused. He reckons I should not go BR because I have 40 K equity in my house (yeah right in this market it could well be less !)

He has told me I am breaking the law as I am a ltd company and still trading knowing that the business is insolvent - he told me to lock the doors. But it is the only money coming in. I manage to get a few quid cash here and there to buy groceries. I have paid up the rent until Jan , so I think I should try and scratch out a living until then. November and December should be quite busy.

My plan is to try and open to Jan (whent the rent runs out), shut the door and do the business from home in the evenings whilst I take a PAYE job. Eventually the house will have to be sold once I have been discharged from BR, but Im going to try and keep up to date with the mortgage. But at least I am still trying to earn the maximum amount I can to pay creditors.

Just not sure whether to take IVA or BR route. Can I still direct a company and keep the house if I go through IVA ? But is it worth it, I have a 100 K of debt?

Thanks again.

Haddit

Rylynn

The advice you were given on your company was not a joke, if you are trading while knowing you are insolvent you are trading illegally, please take that seriously. Either the business is insolvent or it is not. If it is shut the doors, the penalties for you as the director can be pretty harsh, you may see it as earning a scratch of a living, but sorry the law is very stringent on this.

What monies does this company owe right now, okay the rent is paid til January, but what OTHER debts are outstanding? not your personal debts the debts in the Limited Companies names?

Seriously haddit, you were given good advice today, you may regret ignoring it believe me.

You have said yourself the company is running at a loss, a LOSS to whom?

If you get a 9 to 5 job you will not need 65 hours child care a week will you? worrying about how your mother will cope is not the issue, she can take on more kids, or does she have more already she cares for, it is worrying about yourself, this business that is insolvent and how you go about sorting it out.

Also how much are you telling the WTC/CTC people you are earning, and are you actually taking that amount out of the business, as if not you are in muddy water again, as you are lying to them if not.

I have owned my own business so I know the pitfalls and also know you are unwise to even consider trading while insolvent.

RL

neverdespairgirl

haddit wrote: »

He has told me I am breaking the law as I am a ltd company and still trading knowing that the business is insolvent - he told me to lock the doors. But it is the only money coming in. I manage to get a few quid cash here and there to buy groceries. I have paid up the rent until Jan , so I think I should try and scratch out a living until then. November and December should be quite busy.

Is the business insolvent? If so, trading while insolvent is going to add seriously to your problems.

miss_spooky

Hi,

I have some information you may need to consider regarding your childcare. Though it's irrelevant to this post, it is something worth bearing in mind. If you mum is a registered and looks after your children in her home, then CTC / WTC usually DO NOT pay childcare element of WTC/CTC.

I know this as fact as a friend was recently struck off for this reason, just to check I also copied this straight from the HMRC website:

If your child is looked after by a relative

You can't usually claim tax credits for childcare provided by relatives even if they're registered or approved. A relative could be your child's:

• parent
• grandparent
• aunt or uncle
• brother or sister
• step-parent

The exception to this rule is when your child is cared for by a relative who is either:

• a registered or approved childminder caring for your child outside of the child's own home
• a childcare provider, approved under a Home Child Care Providers Scheme in England, Wales and Northern Ireland, caring for your child outside of the child's own home and they also care for at least one other child who is not related to them.

Sorry for the scaremongering but if this is the case then the amount you are being paid is a lot to loose in your cercumstances.

ms.x

shadowdragon

but her mum will fall under the exception with the

a registered or approved childminder caring for your child outside of the child's own home

Based on whats been said.