Company strike off

[Tilly7459]

I have filed with companies house to strike off my company. I am now retired and receive state pension. My company have the following debts.
Corporation tax £7200
Bank overdraft £2500
Bounce back loan £2200 (was £20,000 but repaid most 2 years ago)
Directors loan account debt £6500

My bank have removed all trace of my business bank account and bb loan account from my online account. When I log in it says no accounts.
The total debts from ltd company are under £20 k. Would you guys think the strike off will be difficult given the amount involved and my age status ? Since Covid the business basically never recovered from a good place and now live off my state pension and a very small private pension.
Thank yo7 in anticipation

 

[ChrisCallaghan]

Hi @Tilly7459 ,

Best answer is wait and see now. Even though there isn't much left on your BBL, it's likely the lender will object. It's a bit hit and miss whether HMRC will object for the outstanding CT balance.

But as you've already made a strike off application, you may as well sit back, check Companies House regularly and see if it goes through.

Directors loan account debt £6500

In which direction? Do you owe this amount to your company (i.e. an overdrawn director's loan account) or vice versa?

 

[Tilly7459]

Hi
The DL is what I owe.
Thx for your reply.

 

[ChrisCallaghan]

Hi
The DL is what I owe.
Thx for your reply.

Fingers crossed your strike off application goes through, but should it not, you could repay a portion of your DL back to the company, and then use those funds to cover the costs to close the company through a liquidation.

In either case, I would be happy to offer you further advice if needed - you can DM me or find my contact details in my post signature.

 

[Tilly7459]

Thank you for taking time to reply. I’m hoping given the relatively small amounts owed compared to some I’ve read about. Surely with no assets and on my pension it would be expensive to pursue.

 

[Lisa Thomas]

Let's hope the Insolvency Services don't do an investigation into why the company was dissolved instead of being liquidated when there is a DLA owed. It's highly unlikely though.

 

[ChrisCallaghan]

Thank you for taking time to reply. I’m hoping given the relatively small amounts owed compared to some I’ve read about. Surely with no assets and on my pension it would be expensive to pursue.

Fingers crossed, however BBL lenders are typically objecting regardless of the amount outstanding. Let us know how you get on.

 

[Elliot Green]

It is likely that the strike off will be objected to.

 

[Lisa Thomas]

Did you give notice to the reditors, and follow the correct procedure to dissolve?

 

[Tilly7459]

Did you give notice to the reditors, and follow the correct procedure to dissolve?

Yes and yes.

 

[Lisa Thomas]

Great. Good luck with your strike off.

 

[UK Contractor Accountant]

Directors loan account debt £6500

i suspect that your loan account is more than that due to illegal dividends having being paid.

In any case it will be income requiring to be disclosed to HMRC if and when strike off happens and the debt becomes unrecoverable.