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 […]

My Language School Is In Trouble – What Should I Do?

The quick answer The first thing you should do is work out if your language school is insolvent. This means either all your assets will not cover all your liabilities in full or you are unable to pay your debts as they fall due. If you are insolvent then you should not continue to take […]

How To Liquidate A Limited Company

The quick answer Firstly, you need to know that there are two types of liquidation, and to make sure you choose the right one: Insolvent liquidation: also known as Creditors Voluntary Liquidation (“CVL”). This is where the company cannot pay off everything it owes and needs to be closed down quickly. Solvent liquidation: this is […]

What Happens If My Business Cannot Pay Its Corporation Tax?

The quick answer You need to be proactive and contact HM Revenue and Customs and ask for time to pay if you want to keep trading. If your business cannot afford to pay its Corporation Tax then HM Revenue and Customs will send in a bailiff to your business premises to seize company assets in […]