Council tax - limited company

Discussion in 'Insolvency' started by BenJacobs, Jan 26, 2020.

  1. NicoJ

    NicoJ UKBF Regular Free Member

    242 45
    You didn't answer my question about how this situation happened.
    I asked this because if you are not operating a client account correctly then you can be pursued personally.
    It's possible that you are worrying about the wrong thing.
     
    Posted: Jan 28, 2020 By: NicoJ Member since: Mar 27, 2017
    #21
  2. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,515 445
    The Directors should really get proper insolvency advice.
     
    Posted: Jan 28, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #22
  3. BenJacobs

    BenJacobs UKBF Regular Free Member

    133 6
    Sorry would you mind just expanding on that a little more for me so I can understand? Thank you
     
    Posted: Jan 28, 2020 By: BenJacobs Member since: Mar 18, 2013
    #23
  4. BenJacobs

    BenJacobs UKBF Regular Free Member

    133 6
    We'd prefer this route, but with limited funds, it's not easy. The procedure is thousands of pounds from what I am seeing. The company has recently stopped trading.
     
    Posted: Jan 28, 2020 By: BenJacobs Member since: Mar 18, 2013
    #24
  5. Mr D

    Mr D UKBF Legend Free Member

    22,821 2,747
    The advice should be free. May be options that could be considered - or those options may be bad ideas.
    Its the implementation of stuff that costs. A few grand, 10 grand, whatever.
    Or where there is insufficient money to pay to get stuff done there's the spongebob plan.
     
    Posted: Jan 28, 2020 By: Mr D Member since: Feb 12, 2017
    #25
  6. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,515 445
    The initial advice is usually free.

    You need to ensure the dissolution process is the correct one.
     
    Posted: Jan 28, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #26
  7. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,515 445
    Posted: Jan 28, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #27
  8. Spongebob

    Spongebob UKBF Ace Free Member

    2,211 1,118
    You are not personally liable for the company's debt. There is no risk whatsoever of you going to gaol.

    There is an active proposal to strike off the company. This has emanated from Companies House (probably for non-submission of the Confirmation Statement or other document.) Creditors - such as the local council - will only be aware of this if they monitor the London Gazette or have specifically asked Companies House for updates on the company. There is no onus on you as a director to inform creditors that the company is in line to be dissolved.

    The strong likelihood is that that the company will be struck off before the company's creditors have any knowledge that it is going happen. Once it is dissolved simply inform the creditors that the company no longer exists and forget all about it.

    If the company is dissolved in this way there is absolutely no need to consult an Insolvency Practitioner.

    Ultimately it is the landlords who are responsible for paying the Council Tax. They will be pursued for it and will have to pay it. They will be very unhappy with you but that is no longer your problem.

    Better luck with your next enterprise! ;)
     
    Last edited: Feb 1, 2020
    Posted: Feb 1, 2020 By: Spongebob Member since: Dec 9, 2008
    #28
  9. NicoJ

    NicoJ UKBF Regular Free Member

    242 45
    You should have had a separate client account where the tenants paid their rent. The costs of the tenancy (including council tax presumably) are paid from these funds.

    No company costs (other than your management fees) should be paid from this account.

    If you haven't operated your client account correctly then IIRC you as the director can be pursued personally by the FCA.

    Did the rent received cover the council tax due?
     
    Posted: Feb 1, 2020 By: NicoJ Member since: Mar 27, 2017
    #29