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Can I stop my company being wound up?
Yes you can by asking for the hearing of the winding up petition to be adjourned because you need more time to pay or because it is disputed. Of course, if the claim is correct and you have the funds you can just pay it (plus the legal costs that will be added).
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How do I remove a liquidator?
It depends whether a) the liquidator is just the proposed liquidator and has not yet been appointed or b) they have already been appointed by creditors.
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If I close or liquidate a limited company will I be personally liable for the tax debts?
No. As a director or shareholder, you will not be personally liable for the tax debts of a limited company. However, there are some very exceptional circumstances where you can be. They are rare – see more below.
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Do I have to attend the creditors meeting?
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.
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What’s the difference between liquidation and administration?
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 to a new…
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Is there stamp duty on a distribution in specie in a solvent liquidation?
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.
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What Happens If I Can’t Afford to Liquidate My Company?
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.
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Will my CBIL loan be written off if I close?
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.
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What debts are written off on liquidation?
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.
