Rates bill for company no longer trading

[Mccvinty]

Hi all, wondering if someone might be able to advise me on the issues I am having.
Close to the end of first big covid lockdown I setup a new company (small cafe)
Myself and my business partner signed the lease in our own names and not the company name. The lease was for 4 years. The company did not make it through the lockdowns and cost of living and we closed the business after sinking thousands of pounds trying to keep it afloat.
We surrendered the keys back which were not accepted by the landlord however they had the keys and we have never gone back to the premises. At the start the landlord tried to chase us for the remaining lease but after sending them proof we could not pay they seemed to have backed off. We applied to have the company struck off and that is currently with company house and we will know very soon if anyone objects.
However, main issue is we are both receiving rate bills and threat of court action from the local council. The rates are past years right through to the end 2024/2025 even though our lease was surrendered and even if not accepted would legally terminate October 2024.

Sorry for the long winded question but looking any advice as we just cannot afford anything towards paying the rates. Everything we had we put into the business and since closing it down we have both been unemployed.

 

[Lisa Thomas]

Is it the company the Council are chasing for the rates?

What is the current status of the company? Have you taken advice on it's insolvency options? Perhaps dissolution might be best, depending on its circumstances but would need to know more to comment.

 

[Mccvinty]

Is it the company the Council are chasing for the rates?

What is the current status of the company? Have you taken advice on it's insolvency options? Perhaps dissolution might be best, depending on its circumstances but would need to know more to comment.

Thanks for your response. The rates bill used to come to company name and address. More recently they are coming to our homes addressed to our individual names.

Notice in gazette about striking off. Timeframe for objections was until yesterday. We don’t know if anyone has objected.

Have not taken advice from anyone except company accountant. We can’t afford anything formal so would need either landlord or council to make company insolvent (if they wanted to go down this road) however as the lease was signed in individual names I suspect landlord would come after us personally. I’m not too worried about that at the minute. My biggest worry is the rates from the council. So my question is not necessarily regarding the state of the company but what we could possibly do regarding the rates. I suspect they are going to come after us personally. If they do which I’m informed they will take an aggressive approach will it mean bankruptcy?

Company has no assets.

 

[Lisa Thomas]

Assuming you are personally liable for the rates, and unable to pay, you should take personal insolvency advice, if you cannot reach an agreement with the Council.

That doesn't necessarily mean bankruptcy. There may be better alternatives.

Suggest you speak to debt charity - Stepchange - to explore options:

StepChange Debt Charity. Free Expert Debt Help & Advice

 

[Mccvinty]

How do we find out if we are personally liable? The bill used to come to the company. Now it comes to us individually?

 

[fisicx]

you said the lease was signed in your name not the company. It follows that the council holds you personally responsible for paying the rates.

Look at the original letter from the council setting out the conditions.

 

[Lisa Thomas]

I understand if the lease was in your personal name, all associated liabilities will remain personal.