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Going Bankrupt & My Business
Don1984
Posts: 1 Newbie
Hi all,
I am new here but have been told by friends this site is a great place to get good advice so thought I would give it a go.
I have about £30k of unsecured debt in my name alone, and live with my partner in rented accommodation. I am self employed as a sole trader doing consultancy but only earn a few hundred each month and am now having to look at bankruptcy. CCCS has advised me to go bankrupt asap. My partner pays our rent and most the bills, but she also helps me out with my business quite a lot for free.
I want to wind my business down, since it is making me little money and complicating things in a BR sense. She wants to continue it her self part time in addition to her normal job. I would still be required to work for her for a few hours a week to do the trickier technical and design parts of the consultancy work and maybe answer the phones/deal with customers when she is at her main job during the day. But I could be paid hour for this stuff as a normal employee of a sole trader ie probs PAYE.
My business has no assets, equity or debt. So I wanted advice just to check there would be no problem with the following chain of events:
- She sets up a business account in the business name & registers as self employed sole trader with HMRC.
- I transfer the businesses domain/website to her and tell all my customers that she is taking over and all future work is to be directed to her business of the same name (and that I will be working for her).
- I go bankrupt and list my employment status as employed on the bankruptcy, with the hours that she hires me for etc.
Now I know if this were a case of a LTD then there would be the issue of shadow directing etc because I would still be involved and would have to make it clear that I was not running the business still. But since it will be her sole trader business does it matter if she chooses to still pay me to do work for the business (after all tax will still be paid, probably at a much higher rate because it will be after her main income).
Just want to check that it would not be unfit conduct. Thanks for reading and any advice you can give.
Don
I am new here but have been told by friends this site is a great place to get good advice so thought I would give it a go.
I have about £30k of unsecured debt in my name alone, and live with my partner in rented accommodation. I am self employed as a sole trader doing consultancy but only earn a few hundred each month and am now having to look at bankruptcy. CCCS has advised me to go bankrupt asap. My partner pays our rent and most the bills, but she also helps me out with my business quite a lot for free.
I want to wind my business down, since it is making me little money and complicating things in a BR sense. She wants to continue it her self part time in addition to her normal job. I would still be required to work for her for a few hours a week to do the trickier technical and design parts of the consultancy work and maybe answer the phones/deal with customers when she is at her main job during the day. But I could be paid hour for this stuff as a normal employee of a sole trader ie probs PAYE.
My business has no assets, equity or debt. So I wanted advice just to check there would be no problem with the following chain of events:
- She sets up a business account in the business name & registers as self employed sole trader with HMRC.
- I transfer the businesses domain/website to her and tell all my customers that she is taking over and all future work is to be directed to her business of the same name (and that I will be working for her).
- I go bankrupt and list my employment status as employed on the bankruptcy, with the hours that she hires me for etc.
Now I know if this were a case of a LTD then there would be the issue of shadow directing etc because I would still be involved and would have to make it clear that I was not running the business still. But since it will be her sole trader business does it matter if she chooses to still pay me to do work for the business (after all tax will still be paid, probably at a much higher rate because it will be after her main income).
Just want to check that it would not be unfit conduct. Thanks for reading and any advice you can give.
Don
0
Comments
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Hiya and you are right, this forum is wonderful. I too had to close my business and declare bankruptcy but in difference circumstances to you. I'm sure the regular guys and gals will post soon but in the meantime, the only advice I can offer (asides from wishing you all the best) is contact the Business Debtline on 0800 197 6026 as they were truly great. Also Citizen's Advice Bureau were really helpful on the personal side of things.
Hope this is helpful to start with!0
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