Limited Company Problem

[BIL310]

I started a Limited Company in Jan 2020 and due to lockdowns it's not been a great year.

The business hasn't generated enough profit for me to take any salary (I have another business also).

As it stands the company has a £10k bounce back loan outstanding with HSBC but only around £400 in the bank.

Company turnover is £28k and Xero is showing loss at the moment of £7k.

The company accounts are also due as I've just received a notice to deliver a tax return. I don't have an accountant. I have most of the accounts up to date on Xero.

Can I file this myself? Should I apply to strike off the company? I've checked online and it says even if strike off I still need to file the accounts.

Should I keep the company going and hope things improve after lockdown?

 

[Scalloway]

You will have until January 2022 to file your tax return. Your accounts will be due at the end of October 2021. Do you think the company's prospects will improve by summer time?

 

[BIL310]

How come I have received a notice from HMRC to deliver a company tax return for period 06 Jan 20 to 05 Jan 21?

Yes I think the company will have improved by the summer.

 

[Scalloway]

You have received notice to file a return for that period because HMRC issue them a few weeks after the year end to remind you to get ready. The period requested is 06 Jan 20 to 05 Jan 21 as they expect a return for the first 12 months trading. You will need to file a separate return for the period 06 Jan 21 to 31 Jan 21 to align the future tax returns with you company's year end.

 

[BIL310]

Ahh i see. So best waiting to see what happens over the next 6 months or so then?

 

[STDFR33]

It sounds like you could be insolvent and ought to stop trading.

 

[BIL310]

It sounds like you could be insolvent and ought to stop trading.

I'm not insolvent I can afford to pay back the loan repayments when they're due as have regular money coming in to cover that.

 

[Scalloway]

If you are planning to carry on I would reccomenend speaking to an accountant now so they are ready for you when you want to file accounts. DIY company accounts is not easy.

 

[JEREMY HAWKE]

I'm not insolvent I can afford to pay back the loan repayments when they're due as have regular money coming in to cover that.

Your not insolvent but technically your company is

 

[Lisa Thomas]

The Company is insolvent, you need to take care going forward that you do not allow the position to get worse.