- Original Poster
- #1
Hello
I’ve spent the last few days scouring the forum and have been struck by how helpful and knowledgeable everyone is. With this in mind, I thought it worth asking for some advice on my particular situation.
It’s been a really hard few years, I’m knackered, skint, somewhat depressed and struggling to reach a clear perspective on what my options are (what to prioritise/disregard/fear) and would therefore welcome any advice. I’m aware of the spongebob plan, but not sure if I’m quite at that stage yet….
I therefore thought it prudent to include as much info below as possible to help answer any queries up front, my situation is as follows:
· Solo MD of a Limited Company, 40 years old
· Trading for 3.5 years
· Business was conceived by two others, but both have had to retire due to ill health.
· I’ve not taken a salary for 24 months.
· Have one other gem of an employee who is also not taking a salary at present.
· I’m owed just shy of £15K from director’s loans I’ve made.
· Main sector is working in insurance reinstatement industry, very seasonal and erratic, timeframe of jobs can vary wildly.
· Currently have over £20K of accepted quotes for work, but various delays outside our control are playing havoc with the timeline of this work. We do expect £10K of this to progress in the next 4 weeks.
· Have outstanding asset finance (with a PG), 65% paid off, 35% outstanding, in constant communication with them, we’re currently working together to sell assets via a broker to get our scheduled payments back on track and we can then restructure the agreement to give us some breathing space.
· Value of the assets exceeds the outstanding finance quite considerably, but it’s quite specialised kit and so not something easy to sell fast.
· If we can’t sell assets via a broker/get the arrears up to date, eventually the equipment would be auctioned, and we are aware this might be a bit of a fire sale, plus the associated auction costs would not help.
· Due to the value of the assets (based on a realistic worst case scenario value) and the outstanding work we’re not insolvent, but could be in the coming months if things don’t progress.
· One other outstanding loan (just over £14K) with PG in place, scheduled payments slightly behind, but I’m in constant communication, if we can’t get back on track in the next 4 weeks they will likely refer it to a solicitor
· Arrears of £10K plus with landlord – no PG in place, but as our assets are large and bulky I don’t have the funds to move/store elsewhere.
· HMRC owed £5K vat, no corporation tax/paye debts at all.
· Personally, I don’t have much in the way of assets, no car, not much stuff, and while I’m a homeowner, our trust deed confirms I own just £3K capital in the property I own with my partner, she’s the majority owner by some margin.
I would like nothing more than to bounce back from this, and for all the effort/unpaid hours to be worth something, but aware this might the classic ‘sunk cost bias’ mindset.
I’m not looking to shaft anyone out of their money either, but have to be realistic in that my best efforts might not be enough.
While I would feel like I’m letting everyone down, on a personal level the best option might be for me to call it a day, find a new job with a regular salary and start rebuilding my life/finances.
Any advice on my liability, and how any outstanding PG sums would be enforced/collected would be welcome, as I’m not quite sure how this would work going forward.
If you’ve taken the time to read all the above, or are about to offer any advice I’m extremely grateful!
I’ve spent the last few days scouring the forum and have been struck by how helpful and knowledgeable everyone is. With this in mind, I thought it worth asking for some advice on my particular situation.
It’s been a really hard few years, I’m knackered, skint, somewhat depressed and struggling to reach a clear perspective on what my options are (what to prioritise/disregard/fear) and would therefore welcome any advice. I’m aware of the spongebob plan, but not sure if I’m quite at that stage yet….
I therefore thought it prudent to include as much info below as possible to help answer any queries up front, my situation is as follows:
· Solo MD of a Limited Company, 40 years old
· Trading for 3.5 years
· Business was conceived by two others, but both have had to retire due to ill health.
· I’ve not taken a salary for 24 months.
· Have one other gem of an employee who is also not taking a salary at present.
· I’m owed just shy of £15K from director’s loans I’ve made.
· Main sector is working in insurance reinstatement industry, very seasonal and erratic, timeframe of jobs can vary wildly.
· Currently have over £20K of accepted quotes for work, but various delays outside our control are playing havoc with the timeline of this work. We do expect £10K of this to progress in the next 4 weeks.
· Have outstanding asset finance (with a PG), 65% paid off, 35% outstanding, in constant communication with them, we’re currently working together to sell assets via a broker to get our scheduled payments back on track and we can then restructure the agreement to give us some breathing space.
· Value of the assets exceeds the outstanding finance quite considerably, but it’s quite specialised kit and so not something easy to sell fast.
· If we can’t sell assets via a broker/get the arrears up to date, eventually the equipment would be auctioned, and we are aware this might be a bit of a fire sale, plus the associated auction costs would not help.
· Due to the value of the assets (based on a realistic worst case scenario value) and the outstanding work we’re not insolvent, but could be in the coming months if things don’t progress.
· One other outstanding loan (just over £14K) with PG in place, scheduled payments slightly behind, but I’m in constant communication, if we can’t get back on track in the next 4 weeks they will likely refer it to a solicitor
· Arrears of £10K plus with landlord – no PG in place, but as our assets are large and bulky I don’t have the funds to move/store elsewhere.
· HMRC owed £5K vat, no corporation tax/paye debts at all.
· Personally, I don’t have much in the way of assets, no car, not much stuff, and while I’m a homeowner, our trust deed confirms I own just £3K capital in the property I own with my partner, she’s the majority owner by some margin.
I would like nothing more than to bounce back from this, and for all the effort/unpaid hours to be worth something, but aware this might the classic ‘sunk cost bias’ mindset.
I’m not looking to shaft anyone out of their money either, but have to be realistic in that my best efforts might not be enough.
While I would feel like I’m letting everyone down, on a personal level the best option might be for me to call it a day, find a new job with a regular salary and start rebuilding my life/finances.
Any advice on my liability, and how any outstanding PG sums would be enforced/collected would be welcome, as I’m not quite sure how this would work going forward.
If you’ve taken the time to read all the above, or are about to offer any advice I’m extremely grateful!
