Voluntary Liquidation or Get Company Struck Off?

insolvent · Dec 4, 2008

I saw an Insolvency Practitioner last friday who, after looking at our cash flow, said that we were definately insolvent. As there are minimum assets within the company he said that we couldn't afford to go into voluntary liquidation as we couldn't afford to pay a liquidator's fee (approx £5,000). He said that our best option would be to cease trading, write to all our creditors advising them that we will be striking the company off in three months time, enclosing a Statement of Affairs to show that we had no assets to liquidate. The most we owe one supplier is £5,000 and we owe Revenue and Customers about £2,500: the IP seemed to think that none of the creditors would persue the debt any further, i.e. putting us into Compulsory Liquidation.

This sounded quite simple but in reality it is a VERY daunting prospect as my husband and I (the only 2 directors) would have to deal with all this ourselves.

I phoned the IP to ask his advice about cheques from customers that hadn't been paid into the bank yet and the balances that would be paid for jobs that we had the materials for and could therefore complete: I asked whether we should be paying these into the bank? His ears seem to prick up and said that if we didn't pay the cheques in then these could be used as payment for their fee to liquidate the company properly.

I have two main worries at the moment:

1. Is is worth going down the Voluntary Liqudation route or is the IP just suggesting this as he will be getting paid a fee now?

2. Our bank balance is currently at approx £24,000OD with a facility of £30K- with personal guarantees - my husband has been advised (on a non-professional basis) that we should be putting an invoice in to the company for labour of about £4,000 so that we can pay our own personal overdrafts off before we go into liquidation. I am VERY sceptible about this prospect as I don't want to do anything illegal or don't want to upset the bank as we will be suggesting to them that we are unable to pay back the full amount owing to them as we don't have any personal income or assets. My husband thinks that I am being too cautious and if I don't let him pay a cheque to ourselves then we will be losing out.

Any advice would be really appreciated.

S Thatcher · Dec 4, 2008

Hi,
I think that by paying yourselves rather than your creditors would be seen as a preference, ie prefering yourself, rather than those owed money.

Your main problem as far as I can see is the company OD which you've guaranteed. If the company can't repay this it will fall on you to discharge.
If you pay the cheques that you are getting into the bank this will reduce the OD and help you out.

If you want I can get you a second opinion, from an IP pal of mine.

You have a bit of time to decide in any event as no-one is pushing you as far as I can see from your post.

Moneyman · Dec 4, 2008

be careful if paying yourself. if you are seen to have preferential creditors you could be held personally liable for the other debts. The inland revenue are the ones to watch. they will check you have been fair.

Why pay yourself as any money in the bank will be less of an overdraft you will have to fork out later?
get in every penny you can and then put the company into liquidation yourself. having an insolvancy practitioner is an expensive waste of time. Arrange a creditors meeting. It might be worth doing very little for a while as the moment you go under officially the banks will start chasing for the money.

insolvent · Dec 4, 2008

Thanks for your replies ...

Steve - I can see your point of view with regard to NOT paying ourselves as that will put us further into debt with the bank, however, my husband's point of view will be that it's better to help ourselves now and hope that the bank will reduce some of our liability as we have no money or income to settle the overdraft. If you can get any advice for me from your IP friend I would be over the moon .. as you can imagine I am slightly stressed at the moment!

Moneyman - I have a desperate fear of the unknown and think I will find reassurance by the fact that somebody can come in and help get this sorted for us ... the idea of having a creditor's meeting fills me with dread and dealing with the rest of the liquidation process by ouselves seems an unsurmountable prospect as we have absolutely no experience at all. Maybe it will be a simplier process than I am imagining??

Thanks

jholden · Dec 10, 2008

Striking off means the company can be reinstated, Liquidation means its dead and gone.

From what little you say £5000 seems a lot of money for liquidation. We have a professional relationship with a large liquidation practice should our clients need it, therefore it may be worth asking your accountants if they have such a relationship.

I guess that HMRC would take the view there is nothing in it for them, unless they try to prove the Directors have done something wrong, but for the sums involved you would have to ask the rationale behind such a move, the trade creditor for £5,000 would also have nothing to gain as in, you have an overdraft of £24k therefore there is nothing for him to get.

I guess you need to either talk to another IP or take the advice from the one you have been given, don't forget, the IPs are the experts in this area.

Shame the business has come to this.

Jason

Williams lester · Dec 10, 2008

Pay as much into the bank as you can to reduce the overdraft. Don't pay off any suppliers, cease trading immediately and let one of the creditors take you down if they want to.

You say you wish to 'pay' yourself £4k, are you not employees of the company?

You also say you have no assets - no car, house, computers, tools & equipment. Is that correct?

Spongebob · Dec 10, 2008

I have been in very much the same situation - an insolvent company with no assets and unable to afford a liquidator.

It is actually very simple to sort it out yourselves.

Your responsibility as a director of an insolvent company is to cease trading immediately. This you should do . If you have business premises you should vacate them, removing all stock, materials, fixtures and fittings etc to a place of safe keeping. Once you are out give formal notice to the landlord.

Then write to all creditors explaining that the business is insolvent and has ceased trading. Explain also that there are no assets and that the company cannot afford the services of a liquidator. Invite creditors to initiate winding up proceedings as until someone does the company will lie in limbo.

99% of creditors will simply give up and go away. If you are going to have any problem it is likely to be a local business to whom you owe a couple of hundred quid. Pay them - it's easier that way!

Absolutely nothing will then happen for months. Eventually HMRC will start winding up proceedings against the company - even for £2500. Do nothing.

Finally you will receive correspondence from your local Official Receivers office telling you that the company is now in liquidation and calling you into an interview to explain why the company failed.

While you are waiting for things to happen you should get in as much outstanding money as you can to reduce you overdraft. There is no reason to tell your debtors that the company has ceased trading! Complete any outstanding jobs using available materials and bank the money.

If any new work comes your way do not undertake it under the company banner. Take the job and do it privately as a sole trader or partnership, buying the necessary materials yourselves. Any monies relised this way are yours and should not be paid into the company bank.

It sounds complicated but it works, and the liquidation will cost you nothing. I had to liquidate two companies in this way a couple of years ago and learnt a lot. Especially that insolvency practioners are a particularly nasty breed of vulture.

Contact me if you need any more help.

Bob

Spongebob · Dec 10, 2008

Further to my previous post;

You can't simply get the company struck off. Companies House will not strike off any company which owes money to HMRC.

Your main priority is getting the overdraft down to a manageable size. So pay nothing out and get as much in as you can. Personal guarantees to banks and landlords often result in the personal bankruptcy of the guaranteur.

Do not pay a liquidator!

That £5000 is much better off knocked off your liability to the bank.

Bob

rodobasilio · Jan 15, 2009

Dear All,

I thought that any company already trading even without being insolvent would not be possible to strike off ?

Please, Could someone explain to me ? If a company wants to cease trading what is the best option ? I thought strikking off was just if the company never traded ?

regards
Rodolfo

David Griffiths · Jan 15, 2009

Spongebob said:
Further to my previous post;

You can't simply get the company struck off. Companies House will not strike off any company which owes money to HMRC.

That's not strictly correct. Companies House will strike off any company, but the process involves advertising in the London Gazette and asking if there are any objections.

It is then commonplace for HMRC to object, particularly if you haven't told them what you are doing. As far as Companies House is concerned, all that means is that they wait for (I think) 6 months and readvertise. If there's another objection (usually HMRC again) then they wait another six months, and so on.

I suppose that in theory HMRC should actually use that six months to contact the company and see for themselves what the position is. In practice, I've never known them to do so.

Eventually HMRC will get tired of the game, not lodge and objection and Companies House will complete the striking off process, even if (inevitably) money is owed to the Revenue.

I've certainly known this to delay things by two years,but all HMRC did was lodge the objection and continue to send out penalty notices and forms, despite being told the position. They didn't do anything that could remotely be construed as pro active in terms of following up

makka · Jan 17, 2009

Can you still set up another LTD company and be the Director whilst the IR are chasing the original company that needs to be struck off. Also does VAT man chase what he is owed?

Please advise.

MAKKA

bovine · Jan 17, 2009

i believe you can setup a new company, but if you are barred from being a director at a later date because of the current situation, you could end up in an awkward situation - there was another thread about this a while back.

The undercover exec · Jan 17, 2009

Having spent a some time working in insolvency I'd observe that S Thatcher in an early post on this thread I think got it right. While the company may have no assets I'm sure there will be some personal assets against which the bank can claim. Without knowing the detail it sounds like the bank is the biggest concern. Do what you can to reduce that big number!

Having said that now is the time to begin thinking about what is next, the light at the end of the tunnel. Many very successful people have gone under a couple of times. So long as you learn as you go this might not be the disaster you're feeling it is.

There is another option and that is adminstration and immediate rebirth of the business. n It is n ot uncommon and it leaves a taste in some people's mouths. However if you can honestly look at the business and say that if you wrote of the debts and started again the cashflows would be +ve then this 'pheonix from the flames' tactic might work for you.

A final thought. Cash is king. If you have it in your account reversing that postion is not easy.

Good luck,

The Undercover Exec

The undercover exec · Jan 17, 2009

Insolvent

Sometimes this isn't about the technicalities, there's plenty of good advice in the thread about what technicality might happen. In all honesty unless the full details are known and an IP is giving you advice you'll find it hard to pick a route forward. It sounds from your post as if the as if just getting the process started will ease the stress levels. In which case let the bank etc know and go with it, the technicalities can start later.

I'm seeing a lot of this in my line of work and honestly at this point in time when a customer goes under you shrug your shoulders and get on with it. You aren't alone, it's not the end of the world and it will get better. Again

Good luck

Spongebob · Jan 18, 2009

David Griffiths said:
That's not strictly correct. Companies House will strike off any company, but the process involves advertising in the London Gazette and asking if there are any objections.

It is then commonplace for HMRC to object, particularly if you haven't told them what you are doing. As far as Companies House is concerned, all that means is that they wait for (I think) 6 months and readvertise. If there's another objection (usually HMRC again) then they wait another six months, and so on.

I suppose that in theory HMRC should actually use that six months to contact the company and see for themselves what the position is. In practice, I've never known them to do so.

Eventually HMRC will get tired of the game, not lodge and objection and Companies House will complete the striking off process, even if (inevitably) money is owed to the Revenue.

I've certainly known this to delay things by two years,but all HMRC did was lodge the objection and continue to send out penalty notices and forms, despite being told the position. They didn't do anything that could remotely be construed as pro active in terms of following up

I am sure that you are technically correct. In reality though, and certainly in my experience, HMRC will commence winding up proceedings against the company within 6 months or so of being informed that the company has ceased trading.

This is the best result for the owner of an insolvent company. It gets the liquidation process under way and saves the cost of an insolvency practitioner.

The Offical Receiver seems to be fairly easy to please. At my interview I told the OR that I had sold the fixed assets of my company for cash and kept the money myself in lieu of unpaid salary and expenses. He was perfectly happy with this expanation!

Bob

David Griffiths · Jan 18, 2009

Spongebob said:
I am sure that you are technically correct. In reality though, and certainly in my experience, HMRC will commence winding up proceedings against the company within 6 months or so of being informed that the company has ceased trading.

This is the best result for the owner of an insolvent company. It gets the liquidation process under way and saves the cost of an insolvency practitioner.

The Offical Receiver seems to be fairly easy to please. At my interview I told the OR that I had sold the fixed assets of my company for cash and kept the money myself in lieu of unpaid salary and expenses. He was perfectly happy with this expanation!

Bob

I'd guess that it's all down to the size of the debt, and the workload of HMRC department at the appropriate time. I've certainly known winding up instigated by HMRC where there has been a few thousand pounds of unpaid tax, and the directors haven't done anything, but on companies that have applied for strking off they've not actually done anything other than object - at least we're guessing that it was HMRC

I think that the OR will make a personal judgement about the directors' behaviour at the interview that he will hold. If you are (or appear to be!) straight with him, then things are usually wound up quite quickly. If he thinks that you are being evasive or shifty, then it might be quite different! Most of the time, the people he meets have lost lots themselves with the business going through, and I think that he can see that for himself.

Wages are a pre-preferential debt anyway, so it's quite acceptable to pay those out.

mrsocrates · Jun 10, 2009

Hello,

I owe the HMRC 12,500 for 2008 taxes, £750 late penalty fee to Co's House for late filing of the Company reports, £4,000 in credit card bills to HSBC and have £3,500 in the bank.

I just spoke to an IP and he said that the fee is £4,500 PLUS VAT for their service. I asked him if I could do this for free (as mentioned in this forum) and he said absolutely 100% that I can't and that I need to be a qualified insolvency officer. He said that there is a lot of work involved.

What have others experiences been?

Thanks.

mrsocrates · Jun 10, 2009

Hello,
Hello,

A few years ago I had a company that owed tax but could not pay it and I rang the HMRC and they told me that it is a ltd company and not to worry about it and that I will never hear from them again - and that was that. The company had no other debts.

If I paid off the £3,000 on credit cards with cash, and then I would only owe money to HMRC for taxes and VAT - could I wind the company up much easier by doing it myself?

I would really appreciate it if you could give me some advice.

Thanks.

Moneyman · Jun 10, 2009

It is all quite easy: hand it all over to the "official reciever" rather than an insovency practitioner. providing you have not done anything "wrong" .

mrsocrates · Jun 10, 2009

Hello,

Thanks for the reply.

Who do you contact to get the ball rolling? Do I just ring the HMRC? It is worth ringing them anyway and telling them about my situation? How do you get allocated an official receiver? How long does the process take (this is a very straight fwd case with two directors and shareholders being my wife and I)? Does it make like a lot easier if I pay off the credit card debt? If I have cash in the bank, can I take some out and say I needed it for, say, I owed someone some money?

I also have directors loans of about £25K from the previous year that have not been paid back (I am also going to declare personal bankruptcy as I owe a tonne and can not pay it back).

Thanks.

Spongebob · Jun 10, 2009

mrsocrates said:
Hello,

Thanks for the reply.

Who do you contact to get the ball rolling? Do I just ring the HMRC? It is worth ringing them anyway and telling them about my situation? How do you get allocated an official receiver? How long does the process take (this is a very straight fwd case with two directors and shareholders being my wife and I)? Does it make like a lot easier if I pay off the credit card debt? If I have cash in the bank, can I take some out and say I needed it for, say, I owed someone some money?

I also have directors loans of about £25K from the previous year that have not been paid back (I am also going to declare personal bankruptcy as I owe a tonne and can not pay it back).

Thanks.

I've become something of an expert on this process, having liquidated three companies and gone through a personal bankruptcy in the last four years!

I am now completely debt-free and back in business, making good profits for the first time in years.

Your experience with the insolvency practitioner is typical. What he has told you is a complete barefaced lie; he has shown you his full credentials as a vulture whose only interest is the fee he extract from someone else's misfortune.

Liquidating your own company through the Official Receiver is very simple... and completely free! Follow the advice in my post #7 above.

To answer your specific questions;

To get the ball rolling simply write to all your creditors explaining that the company has ceased trading and has no assets. Invite them to issue winding up proceedings.

Do not phone ANYONE! All correspondence should be in letter form and copies kept.

The Official Receiver will only be appointed after winding up proceedings have gone through the High Court. These will normally be initiated by HMRC and a winding up order issued. Ignore it and simply let the process take its course. In the fullness of time you will be receive notification that the company has been wound up by the court, and some time after that you will be contacted by the OR office and called in for an interview.

The process can take up to a year before the OR is appointed - but what's the rush? Inform all creditors that the company is going to be wound up by HMRC and that there are no assets. Most of them will simply disappear - at most they will send statements every month as usual.

Do NOT pay off the credit cards. This could be construed as preferring one creditor over another and anyway, what's the point?

You are entitled to any wages owed to you by the company. My advice would be to draw out any funds in the company bank account and keep the cash in lieu of wages owed. You might want to use some of it to make under the counter payments to small local creditors who might make your future lives uncomfortable. I'm thinking of people like the garage who services your car or the chap who fixes your computer. These people can cause a lot more trouble than the bank or HMRC!

Feel free to PM me if you need any advice.

Cheers
Bob

mrsocrates · Jun 11, 2009

What other things need to be done? The IP said that they: 1. set up the creditors meeting 2. set up a shareholders meeting (just my wife and I) 3. advertise in the London Gazette (I do not know what this is).

Any advice would be much appreciated.

Thanks.

Spongebob · Jun 12, 2009

mrsocrates said:
What other things need to be done? The IP said that they: 1. set up the creditors meeting 2. set up a shareholders meeting (just my wife and I) 3. advertise in the London Gazette (I do not know what this is).

Any advice would be much appreciated.

Thanks.

You don't need to do anything!

Once the Official Receiver is appointed following the winding up order being granted by the court he will sort all this out.

All you need to do is get on with the rest of your life and let it happen.

And stop worrying!

The laws of limited liabilty mean that you and your wife cannot be held personally responsible for the debts of the company. When the company dies, the debts die too.

The only exceptions to this principle are if the receiver finds that you have been fraudulent or grossly negligent in your running of the company. This is however, very rare.

Cheers
Bob

mrsocrates · Jun 12, 2009

Sorry about all the questions Bob - but thanks for easing my mind (especially my wifes mind!).

I think I have obviously missed this, but what exactly do I do to kick this process off?

Do I tell companies house that I want to have the company struck off? If not, what should I say?

Do I send a letter to HSBC saying that I can't pay the credit card off?

Do I need to contact the HMRC? What do I need to say to them?

We do not owe anyone any money apart from the 3 above.

I promise - this is my last post but I feel I have missed something and don't know how to start this off.

Thanks.

Spongebob · Jun 13, 2009

No worries about the questions - keep asking away!

You need to write a short letter to the company's creditors along the lines of;

Dear Sirs,

Re: XXXX Ltd

It is with regret that I must inform you that the above company has ceased trading with immediate effect. At a meeting with our accountant yesterday it became clear that the company was no longer solvent and that there was no realistic prospect of it again becoming so.

In line with their statutory responsibilities the directors have no alternative but to cease all the company's trading activities.

Unfortunately as the company has no assets or funds, we are not able to appoint an insolvency practioner to deal with the company's liquidation as the company would be required to pay an upfront fee in excess of £5,000. Consequently, the company will continue to lie in limbo until a creditor initiates winding up proceedings, allowing the Official Receiver to take on the responsibilty of dealing with the compay's affairs.

As a creditor of the company, if you feel inclined to initiate winding up proceedings, please feel free to do so.

I would point out that the directors have lost a considerable amount of money in the failure of this enterprise, and face personal bankruptcy as a result.

Yours faithfully,

Mr Socrates

And that's about it. From then on it is just a waiting game until a creditor (usually HMRC) issues a winding up order. This could be in a couple of months but it could be a year. Simply forget about it and get on with your lives.

PS If there are any company assets move them to a place of safe keeping - preferably not at your home.

Homshaw · Jun 13, 2009

I came across a lady whise limited company had been trading at a loss. Her bank told her to visit an IP. He charged her £5999 to handle the insolvency.

Thing was the only person it owed money to was herself via the Directors Loan Account. It should have cost her the ad in the London Gazzette.

Homshaw · Jun 13, 2009

The IP doesn't even put the ad in the London Gazette. When you apply to Companies House to strick it off you pay a small amount of money and Companies House places the ad for benefit of anyone who may object

Who reads the London Gazette in any case? Which I owed it. You must be guaranteed a fortune in these ads

mrsocrates · Jun 15, 2009

My wife is currently working through a Ltd company and is going through an agency. I said she needs to change to a sole proprietor so that we can close down the company and start sending letters as per above.

The agency came back and said that she needs to get a certificate from the Inland Revenue to state that she is self employed. Is this fine to do?

She intends on working for another 3 months.

Thanks.

KellyA · Jul 18, 2009

Hi
My husband has gone personally bankrupt this week. His restaurant (ltd company) ceased trading 1 month ago. It has debts of approx. £10k. We can't afford a liquidator.
We would like to follow the advice of others on this thread, however one difference is that as it is a restaurant we have chairs, tables, wines etc that we are unable to put in storage. Should we sell it? Give it away? We are keen to hand keys back to landlord as have not paid rent for last month. Would we get in trouble if we have nothing to show for our fixtures and fittings? Could we put any money made towards my husbands expenses/salary?
Any advice gratefully recieved - advice lines we have called have given conflicitng advice or say they don't know...
All of your posts have been really useful to us - thanks.

Spongebob · Jul 19, 2009

Kelly,

My initial advice would be to get everything out of there NOW!!!

TODAY!! Hire a truck, load it up, and hawk the furniture around dealers in the morning for as much cash as you can get. The wine I would either sell or keep!

The minute your landlord gets a sniff of what is going on he will have the bailiffs round and you will lose the lot.

Eventually, when your case finds itself in the hands of the official receiver, simply tell him that the proceeds of the sale of assets went towards your husband's unpaid salary. This is exactly what I did and it didn't even raise a comment.

I will post more advice later but I've got to get to work now...

Bob

Moneyman · Jul 19, 2009

I am not sure we are getting the whole story. how come he went bankrupt but the company has not yet gone into liquidation? Also only one month behind with the rent is rather early to quit.
You have to remember that the restaurants assets are not yours. if you run out and flog everything and just pay one creditor then you could be sued by the other creditors. but if you are already bankrupt...

mrsocrates · Jul 19, 2009

Are both you and your husband directors? From my understanding, I thought that if you are going to make your company bankrupt you have to have an active director who is not personally bankrupt (because you can not be a active director if you are bankrupt).

I am not sure what they (the almighty powers) can do if you file for personal bankruptcy first. Sponge Bob may come to the rescue...

KellyA · Jul 19, 2009

Bob - that is honestly the best advice, and only straightforward advice, that we've had from anyone. Will act on it!
Thanks ever so much,
Kelly

Spongebob · Jul 19, 2009

KellyA said:
Bob - that is honestly the best advice, and only straightforward advice, that we've had from anyone. Will act on it!
Thanks ever so much,
Kelly

That's just the first step, Kelly.

Once you've secured the assets, or preferably 'liquidated' them in an informal manner, you have to deal with the company's creditors.

This is fairly straightforward. Simply write a letter to each creditor explaining that the company is insolvent, and that it is the responsibility of the directors to cease trading forthwith. Add that the company has no assets whatsoever, and that you cannot afford to appoint a liquidator.

Explain that therefore the company will sit in limbo until a creditor chooses to initiate winding up proceedings. Invite each creditor to do just that as it would be doing you a favour.

You will find that 99% of creditors will miraculously disappear upon receipt of the letter. They know that any further action will cost money that they will never recover and so will simply write off the debt.

The only people who will initiate winding up proceedings are HMRC. They seem to to do it as a matter of course. Let them.

When you eventually receive the winding up petition through the post open up the best bottle of wine you managed to salvage from the restaurant. This is great news because the end of the saga is near.

Ignore completely the petition and let matters run their course. A few weeks later you will receive a letter from your local OR office explaining that the company is now in liquidation and calling your husband in for an interview to explain the failure of the comany.

In my experience the interview is not overly onerous. Playing dumb is usually a good tactic in these situations. Being a smartarse is most definitely not!

Whatever you do don't worry - the beauty of the concept of limited liability is that you cannot be held personally liable for the debts of the company.

Good luck with the rest of your lives.

Bob

Spongebob · Jul 20, 2009

mrsocrates said:
Are both you and your husband directors? From my understanding, I thought that if you are going to make your company bankrupt you have to have an active director who is not personally bankrupt (because you can not be a active director if you are bankrupt).

I am not sure what they (the almighty powers) can do if you file for personal bankruptcy first. Sponge Bob may come to the rescue...

There is no problem at all with going personally bankrupt before the company is wound up.

There is no onus on a director to put an insolvent company into liquidation. A director's legal responsibility is to cease trading when he or she realises that the company is insolvent. It is evident that Kelly's husband has done that; now that he has gone bankrupt he should resign as a director using the appropriate form downloaded from the Companies House website. This may well leave the company with no directors at all. So be it - it doesn't matter any more.

You do not have to have an active director in order 'to make a company bankrupt'. The director's (or former director's) role in the process is entirely passive, other than sending out letters to all creditors as outlined in my post above. There is nothing more to be done until the letter arrives from the Official Receiver calling you in for an interview. This can take a year or more to happen; until then the company just sits there in limbo and you just get on with the rest of your lives.

Incidentally, my system of liquidating a company for free only works if money is owed to HMRC. Only HMRC are likely to initiate the winding up proceedings necessary for the OR to take on the case. I kind of assume that that money is always owed to HMRC by way of VAT, PAYE/NI, or corporation tax, all of which are paid in arrears. I can't imagine many companies get to the point of having to cease trading while being bang up to date with all these payments.

An insolvent company not owing anything to HMRC is a little outside my area of expertise! I imagine that the same course would be taken regarding writing to creditors, and then after a period of a few months and nothing happening applying to Companies House to have the company struck off.

Easier in my view would simply be to miss a couple of VAT and PAYE payments and let the taxman do the work for you!

Rgds
Bob

chris dunlop · Jul 26, 2009

hi

i want to know if the voluntary liquidation of the ltd company takes place today. how long would be the status of the company on companies house appears active

Dave Shaw · Jul 31, 2009

There is a two stage process - whilst the company is in liquidation the company will appear as active on companies house. Once the liquidation is complete then the company will be dissolved, normally 3 months afterwards.

Therefore it can be several years until the company is not shown as active depending on how long the liquidation takes.

David Shaw
totalitysolutions.com
liquidationhelp.co.uk

mrsocrates · Aug 4, 2009

The only proper creditor we have is with the HSBC and we owe a late fee to companies house - the rest of the money we owe is in taxes and VAT to the HMRC.

We have only sent off one letter to the HSBC and heard nothing back. Should we send letters to companies house and the HMRC (I checked their websites regarding insolvency and it gets quite confusing) - if not - how do they find out that we are no longer trading and liquidating the company?

Thanks.

elaine@cheapaccounting · Aug 4, 2009

mrsocrates said:
The only proper creditor we have is with the HSBC and we owe a late fee to companies house - the rest of the money we owe is in taxes and VAT to the HMRC.

We have only sent off one letter to the HSBC and heard nothing back. Should we send letters to companies house and the HMRC (I checked their websites regarding insolvency and it gets quite confusing) - if not - how do they find out that we are no longer trading and liquidating the company?

Thanks.

HMRC are a proper creditor and in fact rank above others in getting their slice of the cake!

As you have to apply to Co House to get struck off - that is how Co House will know.

As regards HMRC they will start charging fines, penalties etc.

I suggest a trip to CAB for advice on this.

elaine@cheapaccounting · Aug 4, 2009

Here are some useful links:

http://www.insolvency.gov.uk/compulsoryliquidation/whatiscompulsoryliquidation.htm

http://www.insolvency.gov.uk/guidanceleaflets/guides.htm#3

Voluntary Liquidation or Get Company Struck Off?

insolvent

insolvent

Williams lester

chris dunlop

Dave Shaw

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