Do I have to attend the creditors meeting?

The Quick Answer If you are a company director and are the proposed chairperson of the creditors meeting then yes you do have to attend the meeting. Normally all directors are asked to attend the creditors meeting (if there is one in person or online) to explain what happened and answer reasonable questions from creditors. […]

What’s the difference between liquidation and administration?

The Quick Answer Liquidation tends to be used to close a business that has stopped trading or is about to stop trading where there is no live business to save. The business has no future. It is a cheaper process. The process of Administration tends to be used to: a) Sell an ongoing larger business […]

Is there stamp duty on a distribution in specie in a solvent liquidation?

The quick answer It depends what the asset is and if it has a loan or mortgage on it. If it is a freehold property with no loan secured on it then there will be no Stamp Duty Land Tax (“SDLT”). The property is transferred to shareholders debt free after the members voluntary liquidation date. […]

What Happens If I Can’t Afford to Liquidate My Company?

The quick answer Usually, a creditor like HM Revenue and Customs will petition to wind the company up and it will then be put into liquidation. There are still alternatives though – more on these below. In more detail There are three main choices to close down an insolvent company: You pay for liquidation, but […]

Do I need to repay my directors loan before liquidation?

The quick answer No, you do not need to. In more detail If you are about to do a Members’ Voluntary Liquidation, then we can distribute the overdrawn directors’ loan to you as a distribution in specie. This means you do not need to pay it back. We effectively transfer the company asset, of the […]

Will my CBIL loan be written off if I close?

The Quick Answer The Coronavirus Business Intervention Loan (known as a CBIL) is a loan due by your company first. If there are insufficient company assets to repay the loan in full any shortfall up to 20% may be claimed personally from the shareholder or director that guaranteed it. The answer in more detail When […]

What debts are written off on liquidation?

The Quick Answer The following liabilities (also called unsecured creditors) are written off on liquidation: Trade suppliers. Utilities. VAT. PAYE. Corporation tax. Unsecured bank debt like Bounce Back Loans. Business Rates. Employee claims including arrears of pay, redundancy and tribunal claims. The debts not written off by liquidation include: Secured debts such as hire purchase. […]

What happens to my Bounce Back Loan on Liquidation?

The Quick Answer A Bounce Back Loan will rank with all other unsecured creditors and normally be written off on liquidation. Unsecured creditors including suppliers, Business Rates, PAYE and VAT also normally get written off on liquidation. The Bounce Back Loan is classed as an unsecured creditor and should not have been personally guaranteed. THE […]

Can I liquidate online?

The quick answer Yes everything to liquidate a company can be done online. If you want to have a meeting we can do this by video using Zoom, Teams or other services. All of the signatures that we need can be done electronically. In more detail ONLINE LIquidation We can do everything by email and […]

Has wrongful trading been suspended?

The quick answer Wrongful Trading was suspended on the 1st March 2020 until the 30th September 2020. This was because of the economic impact of the Coronavirus on businesses.  In more detail Wrongful Trading The issue with Wrongful Trading is that the directors can be personally liable for the company debts if they keep trading […]