BBL Nightmare (UK) Please, Please help!

[Ukltd2024]

Hello,

I’m completely new to this forum, and praying someone here can help advise, whether an IP or experienced individual.

I have a company, with near to zero assets (a broken old laptop). I work from home and run an online e-commerce business selling products.

2020 - legitimately took a BBL of £15,000, been trading years previously, met the turnover threshold, and it’s been used to buy stock which can be shown in bank statements. No personal guarantees!

Fast forward to 2025, there’s zero left in the bank. I’ve never missed a BBL payment, and the remaining amount Owed is £8k. The company has no other debts and I’m the only director.

I have no funds to liquidate, so I’ve notified the bank and they’ve shut down my account and said the recovery team will be in touch to try to recover the funds - which it can’t, as the company has no money or assets and has ceased trading. I also can’t afford to pay for accounts each year, so I’ve registered as dormant, so filing will be cheap.

What can actually happen, assuming no misconduct - literally the company sits there forever? How can I get this chapter of my life closed it’s killing me! Business debt line say strike off, it’s will be objected by bank but may go through eventually, other respective sources say this is illegal! Who do I listen to?

The only thing I may have dine wrong, is long after the BBL was spent on stock, and subsequent income came in - I used the revenue generated to pay myself a modest wage (£1000) per month, which was owed to me by the company from funds injected - still keeping up with the BBL payments the whole time?

Will I be disqualified? Will that mean when I remortgage my house I’ll lose it as can’t get a mortgage????

Freaking out! Please please help I’m on the brink of a breakdown!

 

[Lisa Thomas]

First of all, don't freak out!

Second, you might like to post this in the insolvency section of the forum for a larger response. perhaps @Ozzy or another admin can move for you.

What happened to the stock?

Are there any other assets?

Were your drawings properly treated and accounted for and recorded (and reported to HMRC) as a wage?

 

[UK Contractor Accountant]

The only thing I may have dine wrong,

Is that like where you go to a greasy cafe for lunch by mistake as the reviews were good

long after the BBL was spent on stock, and subsequent income came in - I used the revenue generated to pay myself a modest wage (£1000) per month, which was owed to me by the company from funds injected

all should be fine if you actually recorded in accounting records as wages and any necessary filings with HMRC for payroll reports have been made.

 

[Ukltd2024]

Is that like where you go to a greasy cafe for lunch by mistake as the reviews were good


all should be fine if you actually recorded in accounting records as wages and any necessary filings with HMRC for payroll reports have been made.

All accounts filed in time; all corporation tax paid etc - does money I’ve injected into the company, and subsequently taken back out (directors loan credit), need to be on payroll? If so that may need to be backdated, but always paid my tax on any dividend from previous years and accountant has logged it and tax paid via self-assessment:

 

[Ukltd2024]

First of all, don't freak out!

Second, you might like to post this in the insolvency section of the forum for a larger response. perhaps @Ozzy or another admin can move for you.

What happened to the stock?

Are there any other assets?

Were your drawings properly treated and accounted for and recorded (and reported to HMRC) as a wage?

I have some stock left at the house, which they’re welcome to take - but it’s been valued at almost bill by an IP valuation agent they use. No other assets at all. I don’t think they were reported as a wage, as I didn’t think I paid tax on money I’ve injected into the company and subsequently taken out? My accountant said they can backdate though to account for this, although no tax is paid.

 

[Ukltd2024]

Hello,

I’m completely new to this forum, and praying someone here can help advise, whether an IP or experienced individual.

I have a company, with near to zero assets (a broken old laptop). I work from home and run an online e-commerce business selling products.

2020 - legitimately took a BBL of £15,000, been trading years previously, met the turnover threshold, and it’s been used to buy stock which can be shown in bank statements. No personal guarantees!

Fast forward to 2025, there’s zero left in the bank. I’ve never missed a BBL payment, and the remaining amount Owed is £8k. The company has no other debts and I’m the only director.

I have no funds to liquidate, so I’ve notified the bank and they’ve shut down my account and said the recovery team will be in touch to try to recover the funds - which it can’t, as the company has no money or assets and has ceased trading. I also can’t afford to pay for accounts each year, so I’ve registered as dormant, so filing will be cheap.

What can actually happen, assuming no misconduct - literally the company sits there forever? How can I get this chapter of my life closed it’s killing me! Business debt line say strike off, it’s will be objected by bank but may go through eventually, other respective sources say this is illegal! Who do I listen to?

The only thing I may have dine wrong, is long after the BBL was spent on stock, and subsequent income came in - I used the revenue generated to pay myself a modest wage (£1000) per month, which was owed to me by the company from funds injected - still keeping up with the BBL payments the whole time?

Will I be disqualified? Will that mean when I remortgage my house I’ll lose it as can’t get a mortgage????

Freaking out! Please please help I’m on the brink of a breakdown!

@Ozzy can you move to insolvency section? Please

 

[Ukltd2024]

First of all, don't freak out!

Second, you might like to post this in the insolvency section of the forum for a larger response. perhaps @Ozzy or another admin can move for you.

What happened to the stock?

Are there any other assets?

Were your drawings properly treated and accounted for and recorded (and reported to HMRC) as a wage?

As it was a loan to a the company - “No, if the £5,000 is a loan to the company, it does not need to be on payroll. Payroll is typically used for paying salaries or wages to employees, and it would only apply if you were receiving compensation for work done (i.e., salary or wages). A loan to the company is a separate financial transaction and is treated differently.

 

[UK Contractor Accountant]

does money I’ve injected into the company, and subsequently taken back out (directors loan credit), need to be on payroll? If so that may need to be backdated,

backdating is a no no - your Accountant should know better

at the time of extracting the money form the company bank account it was either payment for wages or drawing back money you lent to the company. You cant rewrite history.

Anyway back to your original question- the company will remain on Companies House Register until such time someone Petitions to Wind the Company up (Liquidator appointed) or the Government release is directive given to Companies House not to let companies with outstanding BBL's be Struck Off.

In the meantime your Director duties still apply - filings at Companies House will need to kept up to date so non trading accounts & confirmation statements need to be filed.

 

[Ozzy]

@Ozzy can you move to insolvency section? Please

It already is, I moved it almost immediately as Lisa tagged me

 

[Ukltd2024]

backdating is a no no - your Accountant should know better

at the time of extracting the money form the company bank account it was either payment for wages or drawing back money you lent to the company. You cant rewrite history.

Anyway back to your original question- the company will remain on Companies House Register until such time someone Petitions to Wind the Company up (Liquidator appointed) or the Government release is directive given to Companies House not to let companies with outstanding BBL's be Struck Off.

In the meantime your Director duties still apply - filings at Companies House will need to kept up to date so non trading accounts & confirmation statements need to be filed.

Thank you for this
The last acccounts were filed to November 23.
But the money was drawn between November 23 and April 24 - and the accountant hasn’t filed the accounts yet, as it’s 12 months (after November 22), + 9 months? So presumably they would correctly note it it in the next set of account as paying back money the company Owed me?

Yes I will still file dormant accounts and confirmation statement; luckily this is far cheaper than full accounts .

 

[Lisa Thomas]

How much has the stock been valued at by the agent?

 

[Newchodge]

@Ozzy can you move to insolvency section? Please

It's IN insolvency section. But as a question, not a discussion.