How to end company

[Newchodge]

Is this not risking an illegal preference? If the salary was not generally paid, it would seem odd to suddenly pay it

If the director is an employee, employees have priority.

 

[Lisa Thomas]

If the director is an employee, employees have priority.

Only the first £800 of wage payments are classed as primary preferential creditors. The rest of any wages rank as unsecured, ranking pro rata with other unsecured creditors, and behind the primary and secondary preferential creditors, and secured creditors.

 

[Mozz01]

Just got an email confirmation statement us due, as he’s stopped trading is it needed??

 

[Mozz01]

Overdrawn Director's Loan is likely given the description above.

He hasn’t loaned money as such, however he’s been sending money from sum up etc to personal and vice versa to juggle bills

 

[eteb3]

He hasn’t loaned money as such, however he’s been sending money from sum up etc to personal

That is borrowing from the company. Unless you take great care, it’s a breach of directors duties. If there’s a balance in the company’s favour it will be recoverable by a liquidator.

Yes you should send a confirmation statement as it’s an offence not to. But as you have to confirm there that CH has all the other info it’s meant to have, I’d make sure all that is square before you do: it’s also an offence to falsely state that all information has been supplied. Between a late statement and a false one, I know which offence I’d rather commit.

 

[Elliot Green]

So my brothers now after a successful star in a mess

He’s working for nothing his small business is costing money to run and after spending all his savings and borrowing from me he’s finally accepting it has to end.

It’s a very small business, one part time staff as far as I’m aware the debts that will be outstanding is 2 months lease, electric and water ( about £2500)

I could probably cover these if it would make it easier

I suspect his tax will be a mess though as he’s not had an accountant this year and as money comes in it’s been shifted around to cover home bills etc and vice versa

He needs to get out and get a job asap any advice of best way to end business?

Ltd company he’s only director no staff as such could finish with no debt if I give him the money but the tax will be a problem going forward I think

Thanks

This might be a company for liquidation, particularly if strike off isn't an option and the company has no future. However, to ensure all the accurate facts are considered, might want to take advice from an IP.