Ltd company debt

jhadley

Hi everyone,

Looking for some advice:

I have a limited company which is in the dissolution process, and will be struck from the record in a week. The company owes roughly £700 to Barclays on an overdrawn business account and about £1500 to Barclaycard on a business credit card. There is no money left in the business at all, no trading for the past few months, and as a student, funds are tight personally as well.

However, my wife and I are both entrepreneurial people and it's possible that one or both of us may be looking to start another company in the next 7 years.

My questions are:
- What are the consequences of not paying anything?
- What are the consequences of paying a settlement of roughly 50%, and do you think it's worthwhile? (It's a lot of money to us).

NB the company is generally in a mess anyway with unfiled accounts etc.
NB also: there are no directors guarantees, and the bank have confirmed to us we have no personal liability.

bengalknights

A) If not guaranteed then none usually
No point if you arent liable persoanlly

What you will have to do is put the accounts in order as HMRC may refuse your disolution

jhadley

bengalknights wrote: »

A) If not guaranteed then none usually
No point if you arent liable persoanlly

What you will have to do is put the accounts in order as HMRC may refuse your disolution

I've heard mention of a 'black marker' against our directorships. Is that true? How does that work in real terms?

bni

As a company director you have certain responsibilities, like filing annual returns, making sure annual accounts are correct and filed and not trading while insolvent. So theoretically if you have acted improperly as directors, various sanctions could be applied like disqualifying you from being directors or even making you personally liable.

However in practice, this very rarely happens and no serious investigation would probably be undertaken unless there are some substantial amounts involved.

Do you owe any money to HMRC? They are likely to object to the dissolution unless accounts have been filed, etc.

Wywth

jhadley wrote: »

Hi everyone,

Looking for some advice:

I have a limited company which is in the dissolution process, and will be struck from the record in a week. The company owes roughly £700 to Barclays on an overdrawn business account and about £1500 to Barclaycard on a business credit card. There is no money left in the business at all, no trading for the past few months, and as a student, funds are tight personally as well.

However, my wife and I are both entrepreneurial people and it's possible that one or both of us may be looking to start another company in the next 7 years.

My questions are:
- What are the consequences of not paying anything?
- What are the consequences of paying a settlement of roughly 50%, and do you think it's worthwhile? (It's a lot of money to us).

NB the company is generally in a mess anyway with unfiled accounts etc.
NB also: there are no directors guarantees, and the bank have confirmed to us we have no personal liability.

How do you know this?

jhadley

Wywth wrote: »

How do you know this?

That's what the London Gazette says.

bni wrote: »

As a company director you have certain responsibilities, like filing annual returns, making sure annual accounts are correct and filed and not trading while insolvent. So theoretically if you have acted improperly as directors, various sanctions could be applied like disqualifying you from being directors or even making you personally liable.

However in practice, this very rarely happens and no serious investigation would probably be undertaken unless there are some substantial amounts involved.

Do you owe any money to HMRC? They are likely to object to the dissolution unless accounts have been filed, etc.

It was a tiny company when it was trading. About £30 is owed to HMRC I think and I'd gladly pay that out of my own pocket if needs be.

Wywth

jhadley wrote: »

That's what the London Gazette says.

:huh:

As it's your company, surely you don't get to find out about it by reading the London Gazette do you?

I thought the London Gazette typically has two types of entry in cases like this:

1. A notice of an application to strike off a company (where creditors are invited to dispute such application)

2. A notice confirming the company was struck off.

jhadley

Wywth wrote: »

:huh:

As it's your company, surely you don't get to find out about it by reading the London Gazette do you?

I thought the London Gazette typically has two types of entry in cases like this:

1. A notice of an application to strike off a company (where creditors are invited to dispute such application)

2. A notice confirming the company was struck off.

It's (1).

Someone else was appointed a director to help with the dissolution and I haven't spoken to him for months, so unfortunately whilst I am still listed as a director, I don't hear much about what's happening.

Atidi

jhadley wrote: »

It's (1).

Someone else was appointed a director to help with the dissolution and I haven't spoken to him for months, so unfortunately whilst I am still listed as a director, I don't hear much about what's happening.

I'm sorry but that doesn't make much sense to me.

You are a director. A directorship comes with responsibilities.
If you are one of just two company directors you must have signed form DS01.

If you don't wish to take your responsibilities as a director seriously, then resign ... but be quick because if the other one does first you won't be able to. A company must always have at least one director.