Will anyone object to us closing down our business?

Discussion in 'Insolvency' started by Martin1984a, Feb 6, 2018.

  1. Martin1984a

    Martin1984a UKBF Newcomer Free Member

    3 0
    Me and my business partner have a limited company. After five years we've never made a profit (though have had some sales, of course). Honestly, we thought if we kept pumping money into the company and could grow sales that a big tech company would buy us.

    We now know that isn't going to happen and we don't want to give the company any more of our money to keep it afloat when we now realize we're never going to make a profit or even be able to take back the money we loaned the company.

    As it stands we are each owed 5-figures from the money we gave the company to keep it afloat over five years. The company has no other creditors or debt. All accounts and tax returns have been filed to date and we owe no CT or other things like VAT or PAYE. We've never taken any dividends or salary (we're both separate sole traders in other professions unrelated to the company, which is how we make a living while we attempted to give this company a go).

    We both now just want to wind the company down ASAP and move on with our lives. That means we are going to apply to have our company struck off.

    Since we are the only creditors–and obviously won't object to closing down the company–and we owe no taxes or owe money to anyone else, is there any reason HMRC would object to this? I read that HMRC can object to a company being struck off, but I'm not sure under what circumstances they do that.

    As I said, we just want to cut our losses and wind down the company legally as fast as possible and move on (and thus stop putting in more money to keep it afloat). We're just wondering if this process (which we understand could take 3-6 months) could get prolonged? But we think the only one who could prolong it/object is HMRC. But if we're all paid up with them and send them our final accounts and return (we'll owe no tax), would they likely object if the only people owed money are the directors themselves?
     
    Posted: Feb 6, 2018 By: Martin1984a Member since: Feb 6, 2018
    #1
  2. KAC

    KAC UKBF Enthusiast Free Member

    953 213
    Don't bother with the accounts. Just send in a form DS01 and a cheque for £10. No one will care if you don't have any creditors
     
    Posted: Feb 6, 2018 By: KAC Member since: May 7, 2017
    #2
  3. Mr D

    Mr D UKBF Legend Free Member

    10,121 1,063
    I'll object.

    Just kidding.

    Seriously its only going to be those you owe money to who would object. If you don't owe HMRC they won't object.
     
    Posted: Feb 6, 2018 By: Mr D Member since: Feb 12, 2017
    #3
  4. Gavin Bates

    Gavin Bates UKBF Regular Free Member

    453 90
    If you have filed everything there is no reason why HMRC would object
     
    Posted: Feb 6, 2018 By: Gavin Bates Member since: May 9, 2016
    #4
  5. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    2,349 290
    Posted: Feb 7, 2018 By: Lisa Thomas Member since: Apr 20, 2015
    #5
  6. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,306 723