Dissolve Ltd Co V Winding up

[Rich286]

Can someone please explain the difference between allowing a company to be wound up OR choosing to pay for it to be dissolved?

There is presumably implications one might avoid if it is dissolved - but I'm totally unclear.

Many thanks

[Philip Hoyle]

Is it solvent or not?
Are there any assets that you want, i.e. equipment, cash in bank, goodwill, etc?
Are you bothered about being associated with a company that was wound up by others (i.e. possible future credit worthiness problems, etc).

It all depends. If it's got debts and you know you've done nothing wrong (i.e. not taken too much out or been negligent), then you're probably better off letting someone else petition for formal winding up in which case it costs you nothing.

If its got assets and can pay its debts, you're probably best doing it yourself so you stay in control and can limit the costs of striking off - i.e. using your own accountant rather than an expensive insolvency practitioner.

If you give us some more information, we may be able to give you some better advice rather than just generalities.

[Rich286]

Okay;

It is a small Ltd Co. I am the only employee and MD. I have been working as a Draughtsman. I haven't found work since May 1st last year.

So I have been on unemployment benefit ever since.

I have no assets and don't owe anyone except Corporation Tax bill of £4000.

There is no money in the business account. Therefore, I can't pay the Tax bill.

I have used what money was left, to pay for some training courses. The training was aimed at getting me out of the Draughtsman game and into something different, which might generate an income.

I'm still in training - so a long way off earning anything just yet.

I do not owe anything for VAT or PAYE.

My accountant said they would charge about £500 for dissolving the Co.

Do you think it would be money well spent?

I have written to HMRC and explained the situation, but not had a response.

Yes, I would like to think that in the future sometime, I would be setting up another company whether it be Ltd or Sole Trader.