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Hi

Just joined forum- I dont have personal debt, but have company debt approx £15000- looking to wind company up but find it confusing. Can you help me with this pls?

Hey Lil, welcome to the forum, an expert will be able to help you so stick around, maybe you could post more details, how many partners etc. good luck Viki X

Hi Lil and welcome to the forum

It sounds as if you need to liquidate the company formally. Does it own any assets which could be realised to meet the costs of the liquidation?

Hi Lil
Is HMRC a liability?
I take it that you are Ltd
The asset question is an important one.

Lil ... just wanted to say welcome to the Forum ... you definately have come to the right place. [:)]

Debbie

Many thanks for all you replies- yes we are ltd company - just two directors myself and my husband . We do not have any assetts just small building company working from home. Three guys work for us all entiltled to redundance but unfortunately no money to pay them Thought about insolvency but heard this costs a lot of money which we dont have. We owe HMRC £ 4500 and rest will be bank draft . all creditors are paid and upto date. Hence confusion of best way forward . Any ideas pls???

I suggest that if you do not want to pay to place the company into liquidation, that you cease trading immediately and make your employees redundant. They can claim any outstanding wages, holiday pay, redundancy money and payment in lieu of notice from the National Insurance fund - on Form RP1, and their claims will be met to certain monetary limits providing you can demonstrate that the company is insolvent and they would suffer financial hardship.

Once the company has not traded for three months or more, you can apply to Companies House to have it struck off the register. I doubt that HMRC will be too interested, as their debt is quite small, but it would be courteous to let them know of your plans in advance so that they are in the picture.

Have you personally guaranteed the bank overdraft? If so, then this will need to be paid personally.

many many thanks for your quick reply- but one question I thought that the employees could only apply for redundancy if the company went insolvent- via Insolvency Practioner and not through just winding up. I know this is cheeky question but as we are employees can we also claim redundancy - this might help with the bank overdraft ???? We have give personal guarantee - bank is HSBC - from your experience will they make us sell house for this or give us time just to pay back ??

Many thanks again

Your employees can claim so long as they can prove financial hardship, and you may be able to claim as employees but this will be dependent upon your shareholdings. If, between you, you own 100% of the shares, then the DWP will be unlikely to entertain a claim.

How much is your bank overdraft and is this the only personal debt you have?

ok thks - bank overdraft approx 9000 and this is the only personal debt we have

I suggest that you engage in negotiations as soon as possible with the bank to ensure that they understand your current position. Do you have any personal assets? Equity in a property?

yes approx 270K in the house

I rather feel that you would be better off then by borrowing some additional money from the equity and getting the debt paid in full. If you are going to do this, it may be better for you to borrow a little more - say £2,000 - to pay for the costs of winding up the company formally. This brings peace of mind, and a good solicitor ought to be able to do this easily.

What do you both intend to do now for employment?

Hi again - I already work 30 hrs a week in Sales so I will be ok - my husband will probably just work again as a sole trader doing small building repairs and subcontract people in as and when necessary.