Question about spongebob

Discussion in 'Insolvency' started by GIS, Feb 4, 2020.

  1. GIS

    GIS UKBF Newcomer Free Member

    7 0
    Dear members
    I have a question while following spongebob process. Company's next statement is due on 10 April. Now all directors decided to cease trading as insolvent and sent notification of this to all creditors. We haven't penny to fund IP or any DLA hence should we submit DS01 now or wait until april? Only 2 creditors; bank overdraft £2k and hmrc £18k.
    Look forward for your advice.
     
    Posted: Feb 4, 2020 By: GIS Member since: May 4, 2019
    #1
  2. Adam93

    Adam93 UKBF Regular Free Member

    359 71
    What tax do you owe HMRC?

    Quite a large debt owed to HMRC so it would be advisable to get some professional advice.

    the overdraft will probably have a personal guarantee.
     
    Posted: Feb 4, 2020 By: Adam93 Member since: Jan 18, 2018
    #2
  3. Mr D

    Mr D UKBF Legend Free Member

    22,762 2,737
    You can't afford the statement. Leave it.
    A few months later companies house starts process to dissolve company.

    DS01 you wait 3 months after ceasing trading.
     
    Posted: Feb 4, 2020 By: Mr D Member since: Feb 12, 2017
    #3
  4. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,515 445
    When did you send the notice to creditors? You have to give them 2 months notice before filing the DS01.

    HMRC will likely object.

    If they C House will probably strike off in July.
     
    Posted: Feb 5, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #4
  5. GIS

    GIS UKBF Newcomer Free Member

    7 0
    Thanks Lisa. I have posted cease notice on 3rd feb. Should I submit ds1 on april?
     
    Posted: Feb 7, 2020 By: GIS Member since: May 4, 2019
    #5
  6. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,515 445
    Posted: Feb 7, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #6
  7. GIS

    GIS UKBF Newcomer Free Member

    7 0
    Thanks for quick reply. Just wanna know as both creditors notified about cease, can hmrc forcefully liquidate company in between this time? Because I dont wanna get OR in the process. Also what date would be for DS1 submission still confused.
     
    Posted: Feb 7, 2020 By: GIS Member since: May 4, 2019
    #7
  8. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    5,012 1,674
    While Bobs plan is the best for those that are in a state of not being able to afford an IP . It is a bit concerning when a company states that they don't want the OR involved . This normally indicates something and I would guess something to do with the DL account ! :confused::confused:

    Has any director taken too much out of the company ?
    Bobs plan is gaining momentum on the google machine so it is only right that those that support it ensure that advise given does not abuse it and is accurate.

    As members and friends on here we also have a loyalty to the IP companies that are on here as I do feel the plan has a potential to draw business ways from them . We are all here to help each other but on reflection we are not helping each other when we recommend a free service
     
    Posted: Feb 8, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
    #8
  9. ECSWalker

    ECSWalker UKBF Newcomer Free Member

    14 1
    Does the overdraft have a PG? If so, has it been enforced? If you act quickly you could sort that out. What is the balance on the DLA?
     
    Posted: Feb 13, 2020 By: ECSWalker Member since: Dec 14, 2017
    #9
  10. GIS

    GIS UKBF Newcomer Free Member

    7 0
    Thanks. There is no PG for overdraft. We also dint withdraw any money under DLA. HMRC debt is only from PAYE underpayment.
     
    Posted: Feb 13, 2020 By: GIS Member since: May 4, 2019
    #10
  11. ECSWalker

    ECSWalker UKBF Newcomer Free Member

    14 1
    You could leave it and wait for Companies House to strike off the company, or wait three months with no trading or threats of liquidation and file a DS01.

    If you have the slightest doubt about the OR being involved, then pick up the phone and speak to an IP. See Lisa Thomas above.
     
    Posted: Feb 14, 2020 By: ECSWalker Member since: Dec 14, 2017
    #11
  12. Spongebob

    Spongebob UKBF Ace Free Member

    2,211 1,117
    In cases like yours the best course of action is often to do absolutely nothing at all.

    You have already sent out the Spongebob letters - this is good in that it protects you against any potential accusation of trading while insolvent. The letters are an arse-covering exercise.

    If you file a DS01 you are obliged to send a copy to all creditors. This can disturb a can of worms and precipitate an objection from HMRC which can scupper the whole process. It could well lead to HMRC winding up the company leading to the appointment of a liquidator.

    Simply not submitting the next Confirmation Statement is unlikely to attract the attention of HMRC or any other creditor. There is no onus on a director to bring to a creditor's attention the impending dissolution of the company. Unless that creditor is actively monitoring Companies House or the London Gazette they will be none the wiser that the company is listed for dissolution until after the event.

    Not submitting the Confirmation Statement leads automatically to the company being dissolved within three months. It is the new best way of junking an unwanted company.

    If for some reason HMRC does get wind of what you are up to you might have to rethink. The chances of this however are slim and you are in no worse position than you were too start with.

    It's worth a punt.
     
    Posted: Feb 15, 2020 By: Spongebob Member since: Dec 9, 2008
    #12