Limited Company Profit and OR

Round_The_Bend

Hi,

I was working as a contractor through my own limited company until early this year. I subsequently went bankrupt a couple of months later. My final accounts have now been approved and there is a profit of around £4000, which I am entitled to draw now.

Obviously, I am going to tell the OR as I assume that it comes under the category of 'windfall' or the like. However, I wondered if anybody knows whether the OR is entitled to the entire amount or is it the same percentage as the IPA that I am currently paying? Is there any official guidance on this?

As always, many thanks for any information.

Tinytim

Hi Round The Bend,

I think you may have to give us a little more info....When you refer to your final accounts, do you mean that the company has been would up and all creditor repaid. If so, is the £4,000 sat in an account somewhere.

I would imagine that any assets of the company after all creditors had been paid would belong to the shareholders (I assume just you). If this is the case, the OR would in all probability deem your shares in the company to be an asset which could be realised for the benefit of your creditors. In this is the case, I suspect that the whole amount will be taken It is probably best to speak to your OR about it.

Round_The_Bend

Tinytim wrote: »

Hi Round The Bend,

I think you may have to give us a little more info....When you refer to your final accounts, do you mean that the company has been would up and all creditor repaid. If so, is the £4,000 sat in an account somewhere. Yes, you summarised it exactly.

I would imagine that any assets of the company after all creditors had been paid would belong to the shareholders (I assume just you) Correct. If this is the case, the OR would in all probability deem your shares in the company to be an asset which could be realised for the benefit of your creditors. In this is the case, I suspect that the whole amount will be taken It is probably best to speak to your OR about it.

Thanks for the advice. This makes sense and to be honest, I've got no problem with it. Before I even considered bankruptcy, it had been earmarked for existing debts, so 'plus ca change'! I'm just happy to be saving for the future and this helps alleviate a little of the guilt about abandoning my debt. Thanks again.