As Director of my own limited company

Richard_S

SyncMaster wrote: »

I posted last before reading previous. I need acurate advice as I dont know what the correct situation is with regard the OR.

1. Recently my contract has ended. And I know I cant get any more work as I did before because I wont be able to obtain that line of work again.

2. During the past year, I have recieved monies that "as yet", i.e. they have not been declared yet as they are not due to be declared until my self assesment form is due apr 08, so what I am asking is how do I explain all this to the OR and what is my best position! I see it like this:

the LTD should fold up by as its the easist and cheapest means to do it, that would be my brother being Director and he can fold it up and account for whats due (which he is willing to pay the tax burden here to help me). I initially thouht I might eb able to get a way with this, but reading all the advice on this forum I have realised that I need to come clean.

So what I am try to ascertain here is how do I explain this and has anyone had similalr experiences. I have to face teh reality that I have done something silly and my line of work has gone down the tubes, leaving me in a difficult situation. Personally I have no income and only debts, and if my brother hadnt steped in my debt would be more as I understand HMRC debts are not included in BR?

Hi SyncMaster,

Your personal affairs and the Ltd Co will be treated seperately; they are two distinct "bodies". I can't see the point in having your brother pay the Ltd Co tax bill though. If the Co. owes money to HMRC they will no doubt apply for the liquidation of the company depending on how much the Co. owes them and whether they see any reasonable prospect of recovering any money.

If you declare bankruptcy, then whatever you owe personally to HMRC most definitely will be included in your bankruptcy. This is probably a good opportunity to completely wipe the slate clean by getting rid of the Co. and discharging your own debts.

We had a Ltd Co. and it did make things more complicated but the net result is that we have now been discharged from bankruptcy and the Co. has been struck off.

There's no reason why you should hide anything from the O.R. You had a business, it failed, and as a result you've found yourself in debt. The Enterprise Act of 2004 was specifically aimed at making it easier for "entrepreneurs and risk takers" to get back into business, if they'd had a business venture that failed; you specifically fir that criteria.

As Tigerfeet jas pointed out the Business Debt Line is a good place to start for definitive advice when you've got both business and personal debt to contend with.

Regards

Richard

meech78

seven2seven wrote: »

Just a question , I had a Ltd Company , I always thought you needed 2 Directors (which we did). Could someone enlighten me here ?????????If this is the case then you cant have a company registered as Ltd at Companies House which therefore means it is not Limited and you will be liable for any debts it may incur.

Dont want to be the bearer of bad tidings , just trying to clear up a point. Personally I hope it all works out for you , my BR came about due to bottom falling out of the market I operated in and leaving me incomeless.

727 I believe that it is not necessarily the case, i think you need to have a Company Director and a company secretary, not necessarily two directors! Although you cannot be a company director whilst being BR, you can still be company secretary. hope that helps

rog2

Just to agree with Richard - if you are 'signing over' the LTD Company, then you must do it before you file for bankruptcy, otherwise it will be considered as an 'assett', even IF it has no value, and will, most likely, be siezed by the OR/Trustee.
I would advise that, if the LTD Company trades during your bankruptcy period, you personally keep well away from it, unless you become an 'employee' of it, as you will not, normally, be allowed to be a 'director' or to be involved with the 'setting up' of a limited company during your bankruptcy period - max 1 year, but could be as short as six months.

fiveyearplan

Before you make any decisions or sign anything over please, please, please ring the business debtline. The are wonderful. I spoke to them last week and they made a lot of things clear for me regarding my limited co. First of all your brother cannot liquidate the company any easier than you can and why drag him into it if its not necessary.

Ring BDL - you'll feel a lot better.

SyncMaster_3

Thanks for all this info. I did speak to a business debt helpline today. The upshot is that as per above info: I should go ahead and dissolve the company as per normal. As the company serves no purpose now, i.e. it cant get me any more work (esentially its prmiary contract, or source of income has failed). That should be straight forward and I will be doing that this week. Interim I have no income, so as previosly stated started to seek employment, but looking around that will leave me unable to pay the debts I owe etc. So will need to look to going BR asap. This will involve losing my home etc, but as I owe more on it than its worth then I dont feel too bad about that (I took out an extended loan over the value so I could put money into business startup etc). Anyway now that I have sorted what to do about the LTD etc its on with BR and reading this forum to get more detail.

If any one can add to this thread in case theres something I am missing, I shall be reading it all week, the i'll put in for LTD to be dissolved.

Thanks

tigerfeet2006

Glad BDL were able to help and give you the info you needed.

Good luck with it all.

wherediditallgo

Richard_S wrote: »

Hiy Coner,

2 b fare, u dont tell it licke it is u tell it wurse thann it is.:rolleyes: :rolleyes: Det docker hd juust got owt ov the pub maaybe thats wy his speling wos badd.:D

If I didn't know better, I'd think those were the opening lines for the next appearance of Lauren, the schoolgirl character played by Catherine Tate. Bovvered? No - love it. Alriiiiight?

debt_doctor

Conor, you are a rude irritating idiot who cant seem to make a point without insulting people.

I would be happy to be judged against you anytime.

nomoneyprobs

Conor wrote: »

Why? Because I tell it like it is instead of wrapping it up in cotton wool and being all mumsy wumsy about it?

It's OK, I'm not bothered about conversing with an illiterate retard who can't even punctuate a sentence properly anyway.

Perhaps a course in English at the local Adult Education establishment would be a far better use of your time than posting in here.

Are you taking the p1ss?

I've only been on this forum a month and 99% of the posts I've read from you fall into this list : Rude, Unhelpful, Uncompassionate and downright arrogant.

I personally feel that your comments aren't needed and really find it uncomftable to read what you say, If I where stood in a pub / similar real setting listening to you drivel on I'd walk away in disgust as i'm sure would everyone else around you.

As a wise old man once said, If you can't say anything nice, say nothing

Ian

rog2

nomoneyprobs wrote: »

As a wise old man once said, If you can't say anything nice, say nothing

A saying also echoed by Martin LEWIS.