Closing Ltd company due to mental health

Discussion in 'Insolvency' started by Jackson81, Feb 14, 2020.

  1. Jackson81

    Jackson81 UKBF Newcomer Free Member

    3 0
    Hi folks, newbie here. Currently director of small car sales limited company, my decline in mental health, anxiety/depression has led to me unable to perform in my role as managing/director. My mental health has declined rapidly and has been very much a shock to me, I guess I was harbouring things for a long time. I am unable to carry out day to day running of the company without exasperating my symptoms leading to suicidal thoughts, I feel for my own preservation I have no choice but to close my company with imediate effect, as regretable as it is see I no other option. On doctors advice currently signed off (obvs does not apply self employed) Factors that lead to my mental health decline effecting my descision:
    Account has abandoned me (too busy to deal with small business)
    £4000 PAYE debt
    No cash flow
    New laws mean customers can return their vehicle up to 6 months later for full refund, threaten court action, thousands of pounds in solicitors fees plus refund.
    Latest Vat return not submitted and unlikely to be.
    I do not and have not taken a wage/dividends properly for months
    Please do not judge me I have run a successful business for years with so many happy customers I have just on hard times and I'm trying my best. It is extremely difficult for me to even type this let alone deal with things although Iam trying my best.
    My questions to the forum for advice is:
    How do I close my business when I find it so difficult to deal with things concerning vat/paperwork/dealing with things...
    I have very little debt perhaps £2000 to parts suppliers
    £4000 unpaid PAYE
    Contract with website providers/ insurance/electricity/phone/rates etc
    My rents are up to date
    My staff laid off
    1 vehicle repair ramp on finance owing approx £1600
    Vat return overdue and extremely unlikely to be filed
    No company assets
    Personally, no assets rented accommodation.
    Please do not be afraid to give me bad news, I am making this post to try my best to make things right as best I can. Any advice welcome.
     
    Posted: Feb 14, 2020 By: Jackson81 Member since: Feb 13, 2020
    #1
  2. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    5,034 1,681
    Your best option is the SpongeBob plan. It is for directors that do not have the money to fund an Insolvency practitioner and there is no money in the company or money owed to the company .
    All the liabilities you mention are owed by the company and not you personally so when the company is struck off these debts will also go with it .
    As for the trading laws again only the company is liable and should a car be returned after you have closed the doors it wont be your problem

    https://www.ukbusinessforums.co.uk/...ich-to-pay-an-insolvency-practitioner.316523/
     
    Posted: Feb 14, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
    #2
  3. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,523 448
    Hi

    It does sound like dissolution might be the best option for you.

    It would be best to double check by taking some advice form an IP.

    Are any of the staff owed redundancy pay?

    Are there no assets available to pay for Lqn from the car stock?
     
    Posted: Feb 14, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #3
  4. Jackson81

    Jackson81 UKBF Newcomer Free Member

    3 0
    Thank you very much for the good advice so far. No staff owed redundancy and no available assets to pay going forward.
     
    Posted: Feb 14, 2020 By: Jackson81 Member since: Feb 13, 2020
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

    22,965 2,763
    Then sounds like SpongeBob plan would work.
    Not quick, not stress free. But it works.

    The only things to watch out for are anything you have given a personal guarantee on. That would then become your personal debt.
     
    Posted: Feb 14, 2020 By: Mr D Member since: Feb 12, 2017
    #5
  6. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,523 448
    Posted: Feb 14, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #6
  7. Spongebob

    Spongebob UKBF Ace Free Member

    2,213 1,118
    I wish you'd stop posting that link as a viable alternative to the Spongebob Plan.

    It is not a helpful source of practical information. The Spongebob Plan is far more sophisticated and detailed. It has worked for thousands of company directors finding themselves in a seemingly impossible position. In over ten years I have not heard one single complaint that it hasn't been 100% effective.

    I am in the happy position that I don't have to view directors of insolvent companies as a revenue stream.
     
    Last edited: Feb 15, 2020
    Posted: Feb 15, 2020 By: Spongebob Member since: Dec 9, 2008
    #7
  8. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    5,034 1,681
    I have already posted this month that I and others have joint loyalties to the plan and the members of this site !
    I recommend the plan to those that would never have the money to pay people like @Lisa Thomas and the usual IP suspects on here .
    The plan is very good and @Spongebob you have done a fantastic job on this !
    I however feel that by recommending this I am doing the other members a disservice by not promoting and supporting what they do . I have to ask myself how can I expect them to offer me their support and profession view on subjects if I am not supporting them !

    We need to remember we are all here to make money and while the plan is fantastic for the right people as members here who talk to each other everyday . We should also be looking out for each other and not supporting some rouge plan that could potentially take business away from the clan :):):)

    Lets also remember that being a director of a Limited Company comes with responsibilities and everybody should understand these legal requirements at the time of taking on the directorship. When you take on the directorship you are signing up to see everything though all processes in the correct and legal way .
    The easy way that you can start a company in the UK breeds a relaxed and idle attitude to being a company director . All too often on here years down the line a gullible person will say I never knew any of this when I took the company on .! and here is the main problem . Not any of the members on here :)
     
    Last edited: Feb 16, 2020
    Posted: Feb 16, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
    #8
  9. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,530 1,293
    Separate from your business issues, ensure you have proper treatment for your mental health.

    I wish you well.
     
    Posted: Feb 16, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #9
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  10. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    11,597 2,412
    There would appear to be nothing wrong with the spongebob plan, as it works well within the government rules as they have been for many years. The IP system works well for companies who still have assets to free the directors of the process of liquidation but in many cases at a massive cost to creditors to the company, my own IP's rates was as a partner in the practice over £600 per hour, admittedly at far lower rates for the staff who did the donkey work,

    If massive companies like Amazon or Google, can work within the rules by paying a tiny amount of tax on massive revenue with little government involvement then surly the spongebob plan is a lawful action to be used as required by the smaller companies.

    Some may abuse it and at the same time it appears many IP's also abuse their powers as well

    Jackson
    within a couple of months of starting the action to close the company down, you will be amazed at the relief from the pressure, it will have on your life,

    It takes a couple of months to sink in, but there is a good life after loosing your company and hopefully make a massive difference to your way of life.

    Just remember the company owes the debt not the director so the day you send out the ceased trading letters is the first day of your new life

    Here is the link to spongebob plan
    https://www.ukbusinessforums.co.uk/...ich-to-pay-an-insolvency-practitioner.316523/
     
    Last edited: Feb 16, 2020
    Posted: Feb 16, 2020 By: Chris Ashdown Member since: Dec 7, 2003
    #10
  11. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    6,063 1,975
    Or to put it another way 73 times the national minimum wage :D
     
    Posted: Feb 16, 2020 By: Ian J Member since: Nov 6, 2004
    #11
  12. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

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    That's fine in theory but the large multinational corporations work within the laws whilst the majority of the small companies that are reflected in these forums have acted outside the laws by fraudulently preferring themselves in many cases
     
    Posted: Feb 16, 2020 By: Ian J Member since: Nov 6, 2004
    #12
  13. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

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    So are you saying Ian that the good should suffer because some abuse the system
     
    Posted: Feb 16, 2020 By: Chris Ashdown Member since: Dec 7, 2003
    #13
  14. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    6,063 1,975
    No. I am saying that the laws should be tightened up in relation to directors' loans
     
    Posted: Feb 16, 2020 By: Ian J Member since: Nov 6, 2004
    #14
  15. Mr D

    Mr D UKBF Legend Free Member

    22,965 2,763
    Yes, few businesses charge the minimum wage when doing work for other people.
    What with other expenses to pay.
     
    Posted: Feb 16, 2020 By: Mr D Member since: Feb 12, 2017
    #15
  16. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    11,597 2,412
    With the exception of maybe single person companies, I imagine that most failed companies that have staff you will find the directors have not been paid for months prior to stopping trading, they have tried everything possible to assist cash flow and keep running the company, it's what most owners do they fight on firefighting trying everything to save their company, where common sense would probably indicate they should have ceased trading many months prior to that point

    Maybe the DLA should be notified every month along with paye details, so that HMRC are aware
     
    Posted: Feb 16, 2020 By: Chris Ashdown Member since: Dec 7, 2003
    #16
  17. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    5,034 1,681
    The SpongeBob plan as good as it is a red rag to some chancers and I think we may have seen evidence of this over the years on here . People here are saying guidelines and rules needs sorting are probably drawing from suspicions that they come across on here !
     
    Posted: Feb 16, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
    #17
  18. Mr D

    Mr D UKBF Legend Free Member

    22,965 2,763
    The plan isn't doing anything new. Government explains what to do to close your business - and IPs will presumably tell people who cannot afford them what they can do? Mine did. :)
    Didn't mention spongebob plan at all, suggestion by them pretty much matched most of it.
     
    Posted: Feb 16, 2020 By: Mr D Member since: Feb 12, 2017
    #18
  19. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,523 448
    I haven't promoted it as an alternative, I am simply giving the Director the link to details on how they can dissolve their limited company...?

    It's also not a revenue stream for me - I am passing on a link to the government site to dissolve a Limited Company, I'm not sure why you think I get anything out of that?
     
    Posted: Feb 17, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #19
  20. PeopleBuilding

    PeopleBuilding UKBF Newcomer Free Member

    1 0
    People Building is a company that delivers one to one sessions to adults who are experiencing mental and emotional challenges. We have practitioners located across the UK who would be more than happy to have a conversation and discuss an action plan going forward.
     
    Posted: Feb 18, 2020 By: PeopleBuilding Member since: Feb 18, 2020
    #20