How long for HMRC to begin wind up on a Ltd company if you do nothing and conpmay lies dormant?

[Guzzles1]

Long shot for advice here but one man Ltd company. Contract with client not extended. Owe c20k CT and 10k VAT after a horrific family court process to get custody of my son after the mother severed contact and alienated oir son. 2yrs of court but cost c90k. Just threw all gross wage into solictors and barrister. Now have the HMRC bills. The whole process through courts has left me absolutely wrecked but I did win custody of my son. I'm currently seeking work and have a few HMRC debts with CCS which are just manageable for a few more weeks. Given the cost of court I may also have an overdrawn directors loan. It feels like I just need some time to get over court and build relationship with my young son. If I did nothing with HMRC, how long before they would wind up? Appreciate I'd owe the ODL but the stress of it all on top.of everything else is tough. Also on a debt management plan personally too given court costs. Almost just want to do nothing for 6 months and then sort it out once my head is in order. I don't own my home and have explored the Spongebob plan. Just can't so with the stress and court again for a while.
On average how long would it take before HMRC would start wind up? Thank you all in hope of a response.

 

[UK Contractor Accountant]

On average how long would it take before HMRC would start wind up?

probably never based on £30K debt.

Walk away, forget about it and start again.

 

[Guzzles1]

probably never based on £30K debt.

Walk away, forget about it and start again.

Thank you. What would be the threshold for them to do so as I'll be due a bit more VAT and CT next quarter. Is their a without prejudice loose estimate of what level of debt would trigger a winding up? Also last question, when you say walk away, would that mean attempting the write off process and let them refuse etc ? The CCS letters keep coming if that makes sense. Thank you

 

[Porky]

@Guzzles1
Ultimately, by not filing accounts and confirmation statement, Companies house will attempt to strike the company off. However, most likely HMRC will object to the striking off and it will remain active.

What I'm not clear about however though is your comment "I'll be due a bit more VAT and CT next quarter" that indicates that you are still trading? The limited company has either ceased trading or it hasn't. If you have not already done so and you owe the revenue then in principle they could issue a winding up order soon, there isn't a set amount that they act on but anyhow the OR as part of the closure would come after you for your overdrawn directors loan, you owe it.

However, from what you say, you cant pay what you cant pay. You really need some professional advice here from an IP frankly but your first step is to properly cease trading on the limited company and notify all parties.

 

[Guzzles1]

@Guzzles1
Ultimately, by not filing accounts and confirmation statement, Companies house will attempt to strike the company off. However, most likely HMRC will object to the striking off and it will remain active.

What I'm not clear about however though is your comment "I'll be due a bit more VAT and CT next quarter" that indicates that you are still trading? The limited company has either ceased trading or it hasn't. If you have not already done so and you owe the revenue then in principle they could issue a winding up order soon, there isn't a set amount that they act on but anyhow the OR as part of the closure would come after you for your overdrawn directors loan, you owe it.

However, from what you say, you cant pay what you cant pay. You really need some professional advice here from an IP frankly but your first step is to properly cease trading on the limited company and notify all parties.

Thank you very much

 

[Lisa Thomas]

How much is the O/d DLA?

If the stress of waiting for HMRC to liquidate (for which there is no guarantee, or set timescale unfortunately) you could potentially liquidate via a Creditors Voluntary Liquidation, and repay the DLA in instalments, subject to negotiating with your choice of liquidator.

That will give you breathing space and wind the company up in an orderly fashion, which many directors find alleviates most of the stress.

More info here: https://youtu.be/2wklKyl3CI8?si=h02D1IA9D_ixTBI8