What do I do????

[Conjosh]

Hi
We're do I start I'm in a bit of a pickle about everything and need advice on what to do.
I have a ltd company and I'm the sole director of the company and I'm a franchisee which I had 2 franchises in the same company name.
I had to close one back in May due to the lack of business as it was making a loss.
In the 2 years of trading I had to take out 3 loans to keep the company going also the company who I franchise off allowed me to order stock for both shops I now have outstanding debt with them I've been paying the debt back every month until the other shop closed now I'm finding thing very hard the company now will not let me order stock in to sell for me to get money to pay them back until I pay them the £1000 a month.
I've asked them a few times if they can reduce it to help me but won't
I also now I have vat and Hmrc debts which I cannot pay.
I don't know which way to turn and I'm thinking of just throwing in the towel.
I have no money for insolvency
And don't know what to do please advise
Thank you

 

[Scalloway]

If you have no money to keep the company going then you are legally obliged to cease trading.

Read the spongebob plan here.

http://www.ukbusinessforums.co.uk/t...ich-to-pay-an-insolvency-practitioner.316523/

 

[Bob]

Firstly, it would be a good idea to removed your company name from your UKBF profile

The Spongebob plan may work for you but your accounts filed at Companies House suggest that you paid what were technically "illegal" dividends in the period to December 2014.

Dependent upon the amounts owing to them, it is possible therefore that a creditor may seek to place the company into liquidation and then the liquidator may seek to obtain repayment from you of the "illegal" dividends.

You should cease trading and consult an insolvency practitioner. Most will give an intital meetibg free of charge and you can them ascertain your options.

Alternatively you could contact @Lisa Thomas, a respected member on here, who is an IP

 

[UK Contractor Accountant]

Your last accounts filed at Companies House are nonsense- the balance sheet is at 31/12/15 yet the accounts are for the year ended 31/12/14????

 

[UK Contractor Accountant]

I don't think dissolution is the way to go here as you most likely hold some resale stock as well as having outstanding customer invoices judging by the last Balance Sheet filed at Companies House.

As @Bob stated above you need to consult an IP. @Lisa Thomas should arouns Monday fir her considered opinion and well respected advice.

 

[john1989]

Your last accounts filed at Companies House are nonsense- the balance sheet is at 31/12/15 yet the accounts are for the year ended 31/12/14????

You would have hoped that the accountants that filed them would have picked up on such an obvious error.

Though the accounts in general are of very poor quality, so the dates are of no surprise.

 

[Bob]

You would have hoped that the accountants that filed them would have picked up on such an obvious error.

His accountant's own accounts are no better

 

[Lisa Thomas]

Hi

The Company is insolvent so you should really take professional advice from an Insolvency Practitioner to be able to make an informed decision about where to go from here.

The Co. needs to cease trading before you can follow the dissolution procedure. I suspect HMRC will object to you trying to dissolve the Company if the final returns have not been submitted and if they can see there may be an issue with illegal dividends from the last filed accounts. It will also depend on how much HMRC are owed.

If you would like to chat about your options n in more detail I'd be happy to talk. I'm on 01752 786800 today.

 

[Conjosh]

Hi Lisa are you able to talk today regarding the situation?

 

[Lisa Thomas]

Hi Sorry I was out yesterday but am here all day today.