Starting a new business while waiting for an old one to be struck off

tgirl

I applied for my company to be struck off as it was no longer viable. I had a business overdraft and owed HMRC taxes.

Since the application to be struck off I've landed a contract that may be lucrative. Can I open a new company? How about an account with mycashplus?

InsideInsurance

Are you sure this isnt a phoenix company?

tgirl

Sorry I don't understand what you are referring to.

paddyrg

Phoenix company - one that rises from the ashes of another company, usually specifically to try to avoid debts and taxes owing

Pennywise

The question that you'd have to answer is why you aren't putting the new contract through the old company so that some of the profits can be applied to paying it's debts.

You can stop the striking off process at any time until it is struck off Co House register, and even then, you can apply to have it restored, so just because you've started the striking off process doesn't mean it has to proceed.

By doing as you suggest, it really does give the impression that your actions are motivated by trying to avoid the debts incurred which may leave you open to challenge by those to whom you owe money.

I suppose it all depends on why the company wasn't viable. Did you draw out more than it made in profit, i.e. dividends not covered by profits, i.e. drawing out money that should have been ring fenced for tax - your fault and you could be personally liable. Or did it fail because of a bad debt - not your fault.

Not to mention whether the bank and HMRC would allow it to be struck off - anyone owed money has the power to stop the striking off.

Was the overdraft personally guaranteed by you (most banks would only lend supported by a personal guarantee) - if so, they'll come after you personally anyway.

HMRC may well insist on deposits paid to them for the new company if there are unpaid debts on your old company. Certainly seeing this more with VAT registration and PAYE where they effectively want money up front to safeguard against the same people running up tax debts a second time!

Bantex_2

Could be construed as fraud. What happened to the money in the old company?

motorguy

tgirl wrote: »

I applied for my company to be struck off as it was no longer viable. I had a business overdraft and owed HMRC taxes.

Since the application to be struck off I've landed a contract that may be lucrative. Can I open a new company? How about an account with mycashplus?

So based on the above, good news all round then.

You can stop your previous company being struck off, put the new contract through it, pay the money to the people you owe, and pay your debts to the tax man!

Best get on the phone straight away to get this sorted.

Result!

:beer:

tgirl

I didn't realise I could stop the company being struck off. This is a big help as I can hopefully use my existing bank account to receive funds rather than worrying about a new one.