Winding up my LTD business.. Advise needed.

[A4Hiwayman]

After trading for just over a year I have decided to pull the plug.
I started the company by putting £10k of my own money into it. Since then my sales have just about broken even with a small profit. However the company is still minus £9k. The company doesn't owe any money (except to me, I'm also a director) as stock was bought in advance. I'm currently sitting on about £6k of stock but I can no longer afford to continue as I'm not making enough money to take a wage and I'm running out of money.
What's the best approach to close the company down? Any advice would be greatly appreciated.

 

[Lisa Thomas]

How is the £9k made up between creditors - is that all you?

If so you could just dissolve the Company as long as there are no other creditors. What happened with HMRC?

If there are other creditors it seems as if the Company has sufficient funds to Liquidate from the stock proceeds, either through Court or voluntarily through a Creditors Voluntary Liquidation.

You should really speak to an IP for advice.

 

[A4Hiwayman]

How is the £9k made up between creditors - is that all you?

If so you could just dissolve the Company as long as there are no other creditors. What happened with HMRC?

If there are other creditors it seems as if the Company has sufficient funds to Liquidate from the stock proceeds, either through Court or voluntarily through a Creditors Voluntary Liquidation.

You should really speak to an IP for advice.

The £9K is all me.. the remainder of the initial amount that I put in to start the company. There are no other creditors. No outstanding bills or demands etc. I'm about to file my accounts and I made a sales profit below £2k so unlikely that I owe any tax.

 

[Lisa Thomas]

Is there a landlord? If so what has happened to the lease/future rent and any dilapidations?

It sounds as if the dissolution procedure is the correct way to go.

Sell the stock. Use the funds to pay accountants to submit all final returns to HMRC and seek their clearance to dissolve. Use the balance to pay part of your debt back.

Dissolve the Company.

https://www.gov.uk/government/publications/company-strike-off-dissolution-and-restoration