Creditors Voluntary Liquidation

[northernladuk]

Am just wondering how you are going to take a 17k loan with no job and are not from the UK?

[BrilloPad]

NLUK, I will be taking a personal loan and going to pay that amount.

Please remember every one makes mistakes and only few will rectify that. Please respect them.

Well done. You will feel better.

Please remember that CUK is full of trolls. And those who can't resist putting the boot in to those who are down. To get some good responses you have to take a lot of flack too. Please respect that.

Good luck to you!

[eek]

NLUK, I will be taking a personal loan and going to pay that amount.

Please remember every one makes mistakes and only few will rectify that. Please respect them.

Good luck getting a loan for business purposes (which this is for)..

The 2 things banks really don't want to make personal loans for are:-

1) business purposes
2) tax payments

and this meets both that criteria... Good luck I think you'll need it...

[spec0203]

Am just wondering how you are going to take a 17k loan with no job and are not from the UK?

I will borrow from friends and family.

Now I am in UK and searching for a job.

I need to find some source. As I mentioned my company is liquidated now and HMRC lodged claim.

[spec0203]

Good luck getting a loan for business purposes (which this is for)..

The 2 things banks really don't want to make personal loans for are:-

1) business purposes
2) tax payments

and this meets both that criteria... Good luck I think you'll need it...

Thank you. I am not planning to approach banks.

At the moment liquidator is not asking for the money. I think there is some time left. Not sure on what to do. But need to take family help.

[ASB]

Many Thanks for all the replies and its much appreciated.

I will find some source or personal loan to pay that money as HMRC lodged claim for that.

Good luck with that. Be carefult not to pay too much. I have no idea what your accounts look like but let us say that you took 25k of dividends, At the time their were, say 15k or distributable reserves, then you only need to repay 10k.

Arguably at that point the remaining shortfall of CT (if any) HMRC can whistle for.

Do not be pressurised into repaying the entire dividend unless it can be shown there were no distributable reserves.

Also it is not necessarily the case that you have to account for contingent liabilities in assesing the shareholders funds. If you were in a secure contract with solid genuine grounds for belief it would continue then you can anticipate future revenue. However this would be a weak case.

[spec0203]

Good luck with that. Be carefult not to pay too much. I have no idea what your accounts look like but let us say that you took 25k of dividends, At the time their were, say 15k or distributable reserves, then you only need to repay 10k.

Arguably at that point the remaining shortfall of CT (if any) HMRC can whistle for.

Do not be pressurised into repaying the entire dividend unless it can be shown there were no distributable reserves.

Also it is not necessarily the case that you have to account for contingent liabilities in assesing the shareholders funds. If you were in a secure contract with solid genuine grounds for belief it would continue then you can anticipate future revenue. However this would be a weak case.

Many Many Thanks for your reply and it's much appreciated.

I have started my limited company on 2011. Every thing went well over 2 years. I have paid CT for 2011 and VAT's.

After that my father was ill in 2012 and it needs a lot of money for operation. I took around 70k and paid back full by taking dividends in 2013. After 2013 OCT trading was stopped as client was moved to US. In March 2014, I was due for CT 2012 and no funds in company account. But I have paid all VAT and CT was outstanding. I was expecting that business go well and then pay CT. But it was not the case and the business was dried and no cash flow at all.

I have approached liquidator based on friends suggestion and he suggested creditors voluntary liquidation. Then I went with that and my Ltd company made insolvent. After 14 months, he came to me and mentioned that HMRC have lodged claim for CT year 2012. In 2013, I have took dividends and paid directors loan instead of CT. Now my liquidator is asking for that confirmation.

This is where I stand now. I dont know what to say to my liquidator.

Can you give me your opinion on this? I am having sleepless nights on this and into more pressure on how to handle this. Can you please suggest me on what I can do?

I have explained every thing to liquidator before the process starts but now he is saying HMRC lodged cliam and asking why I have paid director loan instead of CT. I am more worried that I will be personally responsible for Corporation tax for 2012/2013 years.

I took dividends in Aug 2013/Sep2013 to pay my director loan and cleared. I took it as a preference over corporation tax. Because it's getting due. Corporation tax needs to pay in December 2013. But from October the business got dried and trading was stopped as the client moved from UK to US. Then company went to liquidation in March 2014 as no trading and no funds.

[northernladuk]

You did run the loan properly rather than just taking it out? There are rules about taking loans out of over 10k. I'm assuming you didn't account for this properly either.

[northernladuk]

In a situation like this isn't it worth the OP paying an accountant to redo his books properly to find what his situation is. He needs to fix his cockups but while doing this he might find his liabilities are considerably lower as ASB says?

[TheFaQQer]

You did run the loan properly rather than just taking it out? There are rules about taking loans out of over 10k. I'm assuming you didn't account for this properly either.

In that year, it would have been £5k.