Strike-Off for Limited Company

cozasmom

Has anybody got experience in going throught the Strike off procedure for a limited company. We have small family business and due to ill health we are having to close down. Unfortuntately we do not have enough money to pay for an insolvency practitioner and I am looking at the strike off action. Only money we will owe is small amount to HMRC all creditors paid up. What are the long term implications for us personally as directors of a company that has been struck off ? Any advise/info greatly appreciated.

Pennywise

Your accountant is the best person to ask.

Presumably you are intending to apply for the informal striking off route that indeed doesn't require a licensed insolvency practitioner. To do this, you need to apply to HMRC for an extra statutory concession, ESC C16 - they will only grant this if accounts and tax returns are up to date and part of the claim is that the directors/shareholders will pay any tax arising. So basically, if any money is owed to HMRC, there is little chance of them agreeing to the informal striking off route unless you personally pay the outstanding taxes.

If HMRC are the only creditors, it may be best just to wait for them to take action against the company, then either they or the official receiver will pick up the bill!

Timmne

Striking off a company with companies house is not folding the company - I have no experience whatsoever with insolvency but I do know that a form and a £10 cheque isn't going to write off the debts your company owes just like that. The tax man will block your striking off too if you don't look after them.

Get to an insolvency practitioners. Whether you have the money or not isn't the question, you don't want to be sued by your suppliers for gross negligence once you announce your liquidation.

Timmne

Having said that (and re-reading your post), are you saying everyone will be paid?

If so, see an accountant, pay them a couple of hundred quid and get them to strike the company off properly.

Otherwise, the form you need is a 652a from companies house, and a £10 cheque.

cozasmom

Thank you for your replies- reconfirm that we will only owe HMRC approx £ 4600 all suppliers are paid.I have spoken to an insolvency practioner and they wanted £7500 to close company down. We have a good accountant and reason not spoken to him yet was that was unsure what we were going to do and I have just been doing ground work to see what options available. The strike off seemed the only option. I was also wondering if you strike off without any objections how does that leave me and the O/H in the future with regard to credit rating etc.. At present we have good credit rating.

Debt_Free_Chick

Cease trading. Do no more work. Incur no more expenses .... do nothing. Then after a while you can simply apply to have the company struck off.

Agree with others - talk to your accountant so he can do the final accounts and advise when is the best time to cease trading.

Companies House have a leaflet that explains the process.

cozasmom

Thanks - will do but still wondered how will effect us in the fture if you have been director of struck of company ??

Debt_Free_Chick

cozasmom wrote: »

Thanks - will do but still wondered how will effect us in the fture if you have been director of struck of company ??

No effect at all. Striking off sounds "bad" but it's just a term for removing a company from the official register (Companies House).

Only credit shows on your credit file and if the company is solvent, with no debts, then there's nothing bad to go on your credit file.

Debt_Free_Chick

Just one clarification ... you say the Company will owe HMRC. I assume this will be paid?

cozasmom

Yes - thats the plan should just about have enough left to pay HMRC - but if we do owe them will that be put on our credit file ?

Debt_Free_Chick

cozasmom wrote: »

Yes - thats the plan should just about have enough left to pay HMRC - but if we do owe them will that be put on our credit file ?

If you don't settle up, then the company will need to go via the insolvency route and can't just be struck off.

I'm now out of my depth, as I don't know if any HMRC debt goes onto the Directors' credit file. It would be better to have no debt in the company as the striking off is easier, cheaper and avoids any bad debt. You certainly don't want to be owing money to HMRC as their powers to recover debts are quite extensive.

Talk to your accountant.