Unsure what to do next

[chrisr12]

I’m really struggling to know what to do about the situation I’m in, cannot afford to get help and when I search insolvency practitioner I don’t know who to trust to make the right decisions

I’ll try and summarise the situation I’m in.
My Ltd company was trading for around 2 years. The outgoings became unmanageable after my dad became terminally ill. Towards the end I was caring for him more and more until he passed away in February. Since then I stopped trading shortly after. As I was working less in that time prior, trade account debts racked up.
I owe roughly 4000 in corporation tax which I haven’t done anything with
I have vat returns overdue from around the last quarter of last year which I haven’t done anything with
I owe some PAYE probably around 600
I owe 14000 to a trade supplier which has a personal guarantee - I eventually agreed on £1250 per month on this
I owe around 9000 to another trade supplier which doesn’t have a personal guarantee but I didn’t want the pressure of compulsory liquidation so have agreed £500 per month on that to at least buy some time
I owe £1000 to my office landlord which is personally guaranteed I’m paying them £100 per month

I have a paye job now paying £3000 a month take home pay. These debts are crippling me and there’s no room to do anything with the hmrc debts or the company as a whole.
My partner is also listed as a director and she cannot have ccj/bankruptcy due to her job.
I’m at the point where I can’t sleep and feel like taking the easy way out
Could anyone advise on what to do next?
Thanks

 

[NickGrogan]

I’m really struggling to know what to do about the situation I’m in, cannot afford to get help and when I search insolvency practitioner I don’t know who to trust to make the right decisions

I’ll try and summarise the situation I’m in.
My Ltd company was trading for around 2 years. The outgoings became unmanageable after my dad became terminally ill. Towards the end I was caring for him more and more until he passed away in February. Since then I stopped trading shortly after. As I was working less in that time prior, trade account debts racked up.
I owe roughly 4000 in corporation tax which I haven’t done anything with
I have vat returns overdue from around the last quarter of last year which I haven’t done anything with
I owe some PAYE probably around 600
I owe 14000 to a trade supplier which has a personal guarantee - I eventually agreed on £1250 per month on this
I owe around 9000 to another trade supplier which doesn’t have a personal guarantee but I didn’t want the pressure of compulsory liquidation so have agreed £500 per month on that to at least buy some time
I owe £1000 to my office landlord which is personally guaranteed I’m paying them £100 per month

I have a paye job now paying £3000 a month take home pay. These debts are crippling me and there’s no room to do anything with the hmrc debts or the company as a whole.
My partner is also listed as a director and she cannot have ccj/bankruptcy due to her job.
I’m at the point where I can’t sleep and feel like taking the easy way out
Could anyone advise on what to do next?
Thanks

You owe £23,000 to trade suppliers - what happened to the product/s that you bought from them, do you still have it - if not where did it go.

Can you arrange to return any of it to reduce the debt, otherwise can you sell it?

Did your partner sign the personal guarantees as well or just you? If she didn't then she could resign and give up any shares to separate herself from the company.

 

[WaveJumper]

Well first you need to take a very deep breath, clearly you have a handle on the numbers but do you have an accountant, there well maybe things you have missed which will reduce your tax burden. As mentioned above what product do you have left which could be sold.

There are several members on here who I am sure will come along later and be able to point you in the right direction and if they offer a free phone call please take them up on the offer.

 

[Elliot Green]

I’m really struggling to know what to do about the situation I’m in, cannot afford to get help and when I search insolvency practitioner I don’t know who to trust to make the right decisions

I’ll try and summarise the situation I’m in.
My Ltd company was trading for around 2 years. The outgoings became unmanageable after my dad became terminally ill. Towards the end I was caring for him more and more until he passed away in February. Since then I stopped trading shortly after. As I was working less in that time prior, trade account debts racked up.
I owe roughly 4000 in corporation tax which I haven’t done anything with
I have vat returns overdue from around the last quarter of last year which I haven’t done anything with
I owe some PAYE probably around 600
I owe 14000 to a trade supplier which has a personal guarantee - I eventually agreed on £1250 per month on this
I owe around 9000 to another trade supplier which doesn’t have a personal guarantee but I didn’t want the pressure of compulsory liquidation so have agreed £500 per month on that to at least buy some time
I owe £1000 to my office landlord which is personally guaranteed I’m paying them £100 per month

I have a paye job now paying £3000 a month take home pay. These debts are crippling me and there’s no room to do anything with the hmrc debts or the company as a whole.
My partner is also listed as a director and she cannot have ccj/bankruptcy due to her job.
I’m at the point where I can’t sleep and feel like taking the easy way out
Could anyone advise on what to do next?
Thanks

Sorry to learn about your situation.

Happy to chat through the situation.

My details are below.

 

[Lisa Thomas]

So sorry to hear about your Dad.

Does the company have any assets? Not just physical - are there any debtor monies owed by customers, or an overdrawn directors loan account?

There will be different options available depending on the answer to that question.

Liquidation or dissolution sound like the most likely suspects based on what you have said.

My video goes into more detail on these options:

- YouTube

Enjoy the videos and music that you love, upload original content and share it all with friends, family and the world on YouTube.

youtu.be

Happy to have a free chat with you both to discuss this further.

 

[Gyumri]

I think at the present time there is no need to appoint an IP because your personal PG for £14,000 and PG for the office rent isn't going to go away, although the £1,000 of rent debt is minor and you are coping with that.

The company's debts don't legally concern you but it does owe £9,000 to a trade creditor so he should be looked after as best you can.

In the meantime I would simply reduce the amount of monthly payments you are making under the PG as it wouldn't be worth the creditor asking for faster repayment.

That should bring you back home and dry. HMRC are unlikely to take any action against the company for £4,000 - in fact it would take them several years even to bother chasing ten times as much.