Ltd company bankruptcy and impact on personal situation

Pennywise

benandlewis wrote: »

Thanks for all the useful advice

I'll need to go back and look at my figures again tonight and will update onceive double checked. Turnover never topped £181k so that seems high. I was working off the bill from HMRC but need to ensure this tallies with the submitted accounts.

What is the net assets/(liabilities) figure as per the balance sheet on the latest accounts? Were the accounts prepared by an accountant or are they home-made? What have your accountants (if any) said about this?

toddle2u

You can't apply for informal striking off as the company is insolvent

The (relatively) new DS01form does not state that you have to declare that the company is solvent anymore so this approach could be applicable. However, no doubt HMRC would object to the strike off.
With regards to the (what seems like) the overdrawn DLA you should get your accountant to retrospectively convert this to salary which will eradicate any personal liability you will have but increase the debt due to HMRC. The when HMRC apply to have the company wound up the OR will not be able to come after to you personally for anything.

Pennywise

toddle2u wrote: »

With regards to the (what seems like) the overdrawn DLA you should get your accountant to retrospectively convert this to salary which will eradicate any personal liability you will have but increase the debt due to HMRC. The when HMRC apply to have the company wound up the OR will not be able to come after to you personally for anything.

HMRC can issue a "personal liability notice" on the director for unpaid NICs so this isn't a surefire way of the director avoiding his liability.

toddle2u

Personal liability notices are rare and in this instance probably worth the risk.

askabigail

This area is plainly a target for HMRC

See http://www.independent.co.uk/news/uk/home-news/crackdown-on-small-firms-a-blind-eye-for-big-business-6284205.html

toddle2u wrote: »

Personal liability notices are rare and in this instance probably worth the risk.

Enterprise_1701C

We have had horific "bills" for corporation tax for our company when we have actually owed nothing, so you definitely need to go over the figures. We now use an accountant and it pays for itself.

toddle2u

This area is plainly a target for HMRC

What has the OP got to lose by converting the o/d DLA to salary? If he leaves it as it is the OR/IP will want it back and if he converts it to salary he MAY get issued with a personal liability notice. Plus the link provided has nothing to do with these it's do with record keeping.

There is no point getting an accountant to check the figures as the company is insolvent and would just incur more bills. However, if you can't convert the DLA to salary yourself this is worth spending money on with an accountant as it could save you thousands!