Closing down my company, in a bit of a pickle

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redninja.13

Free Member
Aug 4, 2011
34
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  • #1
    Hello Everyone

    I've read the spongebob thread and think that's probably the most helpful thing I have read and I am pretty keen to go for it. I just have a few questions/comments if anyone could give me some advice or opinions!?!

    Background info:

    I ran a bar for a few years and i have realised I was just accumulating debt and ceased trading. Company is in Scotland, however I've moved down to England now. I have 10k in the bank (4k I managed to save and 5k gas refund I received today). So you'd think I was ok wouldn't you!?

    Here's my problems:

    1. HMRC - I only filed 1 VAT return, (I'm afraid I've suffered a case of ostrich fever and hid my head in the sand when things started going wrong). My company was then under the VAT threshold but due to stupid personal issues I never deregistered (yes I know I'm stupid). So I don't know what effect this will have!?

    2. Council Rates - everyone would think these will go in the pot with everything out, but this lovely council has some sneaky way of taking the directors to court and making them personally liable (they have done it to 3 of my friends!) The first years arrears has gone to court and a judgement has been issued against my company so I don't believe they can get me with that one. The most recent year is in the company name at present but I have 7k still outstanding and I worry what they will do to get this...

    3. Companies House - my accounts weren't filed on time and my accountant hasn't replied to my email asking about it

    4. Paperwork - I didn't keep very good paperwork, I've moved home and at the moment I'm struggling to find half of it (hence why my accounts are late) I've decided to start training as an accountant and since passing 2/3 exams I realise the importance of keeping proper records etc and I'm scared about getting in trouble over it :-(

    I think that's all my problems.....

    Please don't be too harsh on me, I know I've been stupid but I am now trying to deal with it. And just looking for help or advice
     
    R

    redninja.13

    Free Member
    Aug 4, 2011
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  • #5
    I've not received anything I'm aware of, not been at the premises for a few weeks. Will be there in 2 weeks. Are there penalties for them striking me off that way? After they strike me off could I offer the 10k to the creditors as a settlement figure?
     
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    Chrismckay

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    Mar 15, 2011
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  • #9
    There are certainly different insolvency rules applicable to Scottish registered companies - I don't deal with Scottish companies for that reason. I am not sure if the same rules about striking off companies apply as they do to companies registered in England and Wales. This should be checked before proceeding.
     
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    Scalloway

    Scalloway

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    Jun 6, 2010
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  • #13
    As far as I am aware striking off is exactly the same in Scotland as in England. If you want to file accounts you will need to get your accountant to prepare them and the company will have to pay him for it. Even if Companies House grant you an extension you will have to pay all the late filing penalties up the the date the accounts are filed.

    It seems a bit pointless to me if you are going to have the company struck off anyway. I would just apply for strike off, advise the company's creditors and let things take their course.
     
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    redninja.13

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    Aug 4, 2011
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  • #17
    With regards to the rates, I'm not personally liable for the lease (I would have massive rent arrears problems if that was the case) but they use a loophole where if your lease was under 1 year you are personably liable for the rates. Personally i think that is absolutely disgusting, what is the point in having a limited company?

    My lease was originally 1 month rolling, I got the landlord to reissue it so that I wouldn't be liable, but we've had a falling out over non payment of rent (we withheld it because we had reason to believe that they had kept money due to us) so I guess I worry that they might back the council up and say I am liable
     
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    tan_lan

    Free Member
    • Oct 7, 2014
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  • #18
    redninja.13 said:
    With regards to the rates, I'm not personally liable for the lease (I would have massive rent arrears problems if that was the case) but they use a loophole where if your lease was under 1 year you are personably liable for the rates. Personally i think that is absolutely disgusting, what is the point in having a limited company?
    Click to expand...

    I am very curious to know how that works!!!
     
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    Spongebob

    Spongebob

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    Dec 9, 2008
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  • #20
    I sympathise with your situation.

    You need to get things into perspective. To you, your problems are huge and dominate your life. To everyone else, including the company's creditors, you and your problems are insignificant and no-one is wasting any time worrying about you!

    Move the money out of the company bank account to safeguard it and sit on it as a fighting fund. If you have not already done so, send the Spongebob letter to all creditors. Use the company's trading address as the correspondence address but have post redirected to where you are now. Don't give anyone your current address.

    Anyone turning up at the premises looking for you will find that you have done a runner. This is always a good tactic.The council is not going to spend money tracking you down to England in a spurious attempt to pin a company debt on you personally.

    It is possible that HMRC will wind the company up but anecdotal evidence suggests that this is increasingly unlikely in circumstances such as you describe. They used to wind companies up as a matter of course but that costs money, and I suspect that they now only do it where they see a realistic chance of getting more back than they will have to spend.

    Three months from the date the company ceased trading apply to Companies House to have the company struck off. You may get objections but simply re-apply every three months until it goes through.

    If all goes well and a compulsory liquidation is avoided you will be left with the fighting fund. Your biggest problem then will be to decide what to do with it!
     
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    redninja.13

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    Aug 4, 2011
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  • #22
    I just checked my email and got this: do you think I should ignore it and just carry on "ala spongebob"

    As you are aware, this matter has been dragging on for some time.......

    This cannot continue on indefinitely. As such, I am now taking steps to re-start the action and seek decree against XX. This could lead to enforcement proceedings being undertaken.
     
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    redninja.13

    Free Member
    Aug 4, 2011
    34
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  • #25
    lesliedocherty said:
    Glasgow council are quite ferocious in chasing money owed to them, a bit like a pitbull
    Click to expand...

    yes they aren't the only scottish council.

    I've printed my spongebob letters, ignored my email from the water company solicitor and was going to set the plan in motion tomorrow

    Do you think I would be wiser trying to compromise with them?
     
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