Scotland Liquidators

If your company is solvent, closing the business by way of a formal liquidation procedure known as a Members’ Voluntary Liquidation, may well be the most tax-efficient and cost-effective way of achieving closure whilst also ensuring all loose ends are tied up correctly. https://lnkd.in/evxdXNWW

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Paying yourself a salary and receiving dividends on company profits are not the only ways to take funds from a limited company. As a company director, you can also pay money into the business or take it out using a director’s loan. You must record the transactions in a director’s loan account, which is included in the balance sheet. When you take more money out of the company than you pay in, your director’s loan account is overdrawn. As long as the company is profitable, an overdrawn director’s loan account (DLA) isn’t a problem. You have nine months and one day after the company’s financial year-end to repay the money to avoid a tax penalty. https://lnkd.in/dw3Cfe4p

If your Scottish company has tax debts it cannot pay, you need to proceed carefully. A business that can no longer pay its debts when they’re due is known as ‘insolvent’, and there are strict rules that govern how the directors of an insolvent company must act and the steps you should take to close it down. If you don’t follow the strict company closure rules, you and the other directors could become personally liable for some or all of the company’s debts. You could also be disqualified from acting as a company director in the future. HMRC can take swift and decisive action against companies with PAYE, VAT or Corporation Tax debts. That’s why you should seek professional advice as early as possible. At Scotland Liquidators, our team of licensed Insolvency Practitioners provide professional advice and guidance to protect your position personally and close your business in the most appropriate way. https://lnkd.in/eqRstH9s

If you are the director of a failing business with an outstanding Bounce Back Loan, you’ll understandably be concerned about what happens to that loan if the company cannot repay it. The good news is that company directors were not required to sign a personal guarantee to secure the loan. As part of the Bounce Back Loan Scheme, the government gave lenders a 100% guarantee to ensure their funds would be repaid if the borrower went bust. However, there are still risks for company directors. If you have an outstanding Bounce Back Loan that you cannot pay, you must close the business in the right way. There will be an investigation into your conduct in the period leading up to and during your company’s insolvency. If you misused the Bounce Back Loan or acted unlawfully, the liability for repaying the loan could fall on you personally. https://lnkd.in/dPM6_xPK

Many limited companies are founded equally by two people. By pooling their time, expertise and financial resources, they hope to achieve more than if they went into business alone. While this type of relationship often works out well, there are also instances when two shareholders with an equal stake in the company can have very different points of view, and that’s where problems occur. 50-50 shareholders can disagree about everything from who is responsible for tasks to the direction of the business. Those differences in opinion can escalate to the extent that one of the shareholders may decide to liquidate the company, but what happens if the other shareholder disagrees? Here we discuss whether a 50% shareholder can force a company into liquidation and their other options for closing the business. https://lnkd.in/d9G4Xiii

Paying yourself a salary and receiving dividends on company profits are not the only ways to take funds from a limited company. As a company director, you can also pay money into the business or take it out using a director’s loan. You must record the transactions in a director’s loan account, which is included in the balance sheet. When you take more money out of the company than you pay in, your director’s loan account is overdrawn. As long as the company is profitable, an overdrawn director’s loan account (DLA) isn’t a problem. You have nine months and one day after the company’s financial year-end to repay the money to avoid a tax penalty. However, if the company’s performance dips and it enters insolvent liquidation, an overdrawn director’s loan account can have serious implications for you personally. https://lnkd.in/dw3Cfe4p

Paying yourself a salary and receiving dividends on company profits are not the only ways to take funds from a limited company. As a company director, you can also pay money into the business or take it out using a director’s loan. You must record the transactions in a director’s loan account, which is included in the balance sheet. When you take more money out of the company than you pay in, your director’s loan account is overdrawn. As long as the company is profitable, an overdrawn director’s loan account (DLA) isn’t a problem. You have nine months and one day after the company’s financial year-end to repay the money to avoid a tax penalty. However, if the company’s performance dips and it enters insolvent liquidation, an overdrawn director’s loan account can have serious implications for you personally. https://lnkd.in/dw3Cfe4p

Creditors’ Voluntary Liquidation – or CVL – is a way of bringing an insolvent limited company to a formal end. As the name suggests, a Creditors’ Voluntary Liquidation is a voluntary process entered into by the directors of an insolvent company under the guidance of a licensed insolvency practitioner. Liquidation by way of a CVL is a big step to take and it is therefore only usually considered when all options for rescuing the business have been exhausted. As part of the CVL process, all assets belonging to the company will be liquidated for the benefit of creditors with any debt which remains outstanding at this point written off with the exception of any borrowing which has been personally guaranteed. The company will then be struck off the register held at Companies House and the company will cease to exist as a legal entity. https://lnkd.in/eficDqKf

If your company cannot pay its debts when they are due and/or its liabilities are greater than its assets, it’s insolvent. When your company becomes insolvent, you have a legal duty as a company director to maximise the interests of your creditors. You can do that by ceasing trading and putting the company into insolvent liquidation via a process called Creditors’ Voluntary Liquidation (CVL). But if there’s no money left in the business, how will you pay the liquidator’s professional fee? https://lnkd.in/eQw3K_nr