Winding a company up that has money

Discussion in 'Insolvency' started by Conky, Jan 11, 2019.

  1. Conky

    Conky UKBF Newcomer Free Member

    5 0
    Hi I have a compnay that has been trading for 30 years, but due to health issues I have decided to pack it in.
    The company has circa £50K in the bank.
    Company loan from me to company of £20K, I think its that way around, its there for dividends.
    Owes circa 5.5K corporation tax.
    Vat of about 6K will come due in about 3 months as just paid it
    Owe creditors about 5K
    Company owns a van that I drive which cost 12K plus vat, 4 years ago.

    I guess I can just pay everyone, take any money and go.
    But is there a better way?
     
    Posted: Jan 11, 2019 By: Conky Member since: Jan 11, 2019
    #1
  2. Awinner2

    Awinner2 UKBF Regular Free Member

    303 59
    Obviously as you say pay all the bills and shut the business, having due regard to tax etc. Or is it a viable business to sell on?
     
    Posted: Jan 11, 2019 By: Awinner2 Member since: Aug 4, 2017
    #2
  3. Conky

    Conky UKBF Newcomer Free Member

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    Oh sorry, stock in hand is worth, not sure, 3 K for stuff that could go in a firesale for 1K, but about 5k worth which I could sell off over the next few weeks for 10k?
     
    Posted: Jan 11, 2019 By: Conky Member since: Jan 11, 2019
    #3
  4. Conky

    Conky UKBF Newcomer Free Member

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    Its retail, and to be honest I do not think it really has a value, as such, obviously I could be wrong, but I want to move on and not spend months trying to find a buyer, that eventually may never emerge.
     
    Posted: Jan 11, 2019 By: Conky Member since: Jan 11, 2019
    #4
  5. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    2,577 310
    Hi given the amounts involved a Members Voluntary Liquidation is unlikely to be viable so paying off all the creditors and then dissolving the Company is probably the best thing to do. The Company's accountants should be able to help you with this.

    You need to ensure that all liabilities can be paid first, otherwise you could be looking at an insolvency Liquidation.

    Are there any employees entitled to redundancy pay that need to be allowed for?
     
    Posted: Jan 14, 2019 at 9:07 AM By: Lisa Thomas Member since: Apr 20, 2015
    #5
  6. Conky

    Conky UKBF Newcomer Free Member

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    Hi Lisa
    I am the only employee.
    Obviously I want to come out of this with as much as possible.
    I do have a firm of very good accountants who can give me tax advice.
    I suppose what I am really asking is if there is a more aggresive but legal approach I can take.
    I am sure there are plenty of dodgey dealers out there who can come up with schemes, that will earn them some money.
    IME being greedy can get you conned, but also just blindly following rules can be a bit naive, and can cost money that never needed to be paid out.
     
    Posted: Jan 14, 2019 at 10:15 AM By: Conky Member since: Jan 11, 2019
    #6
  7. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    2,577 310
    As far as I see it you only have two options dissolve it ordinarily or wash it through an MVL...

    I'm not quite sure what you mean by 'more aggressive but legal approach I can take'?
     
    Posted: Jan 14, 2019 at 11:18 AM By: Lisa Thomas Member since: Apr 20, 2015
    #7
  8. Conky

    Conky UKBF Newcomer Free Member

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    What is an MVL please, and what is washing it?
     
    Posted: Jan 14, 2019 at 12:11 PM By: Conky Member since: Jan 11, 2019
    #8
  9. Blaby Loyal

    Blaby Loyal UKBF Enthusiast Free Member

    682 132
    An MVL is a Members' Voluntary Liquidation i.e. a solvent winding up.

    "Washing it" is perhaps not the best terminology to use. Replace it with "or use the MVL procedure ..."
     
    Posted: Jan 14, 2019 at 12:17 PM By: Blaby Loyal Member since: Jun 12, 2018
    #9
  10. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    2,577 310
    Process it.
     
    Posted: Jan 14, 2019 at 3:07 PM By: Lisa Thomas Member since: Apr 20, 2015
    #10