Fight to save Ltd or not

[simes]

1. Bounce back loan (£30k)
2. Directors Loan (£ 30k)

Sorry. For my edification.

Presumably the Director's Loan is the sum from YourCo to You personally, and that which was made available to YourCo by the BBL of the same amount?

[jamesbrown]

It may still keep me afloat. I have just over 3 months remaining to find something, which remains my main objective.

Yeah, I would try your best with that, taking a permie job in the interim or, really, anything you can get. There's no pride in holding out in the current situation - the market is dire for almost everyone. Just do what you can and pay pack the DL over time and then close the company if you cannot get a contract in the medium-term (IMHO).

[GregRickshaw]

As others have said

Your DL is your biggest problem really but not insurmountable.

I had around 19k DL, I then paid some back into my Business account marking it as DL so accountants could see and tax returns were adjusted accordingly, I also reduced it by paying VAT and PAYE, NI etc., from my personal accounts your accountant will mark this a DL repayment and reduce the loan.

If your company is dormant, not-trading etc., once the DL is sorted, you can then get TTP CT and VAT as long as you talk to them, they will help if you are up front and honest.

'I think' we are allowed around £10k before the extra interest and tax kick in so aim to get it to around that figure.

[oliverson]

Have you taken any out of the company since it was clear it was unviable (other than the directors loan)?

An argument could be made by creditors that you were trading while insolvent or not a viable business and therefore not performing your fiduciary duties as a director.

Who says the company is unviable? I could land a contract to start in a few weeks and this problem goes away; both the Corp Tax and VAT would be paid when due, the directors loan would remain as is and the bounce back loan repayments would commence April 2021. What I am trying to do here is not avoid paying what is due but planning for a worse case scenario.

[jamesbrown]

What I am trying to do here is not avoid paying what is due but planning for a worse case scenario.

Perfectly reasonable thing to do and worth posting, because you can bet that many others will be wondering the same thing.

[oliverson]

Perfectly reasonable thing to do and worth posting, because you can bet that many others will be wondering the same thing.

as I said on page 1, I intended posting this under a different account because of the embarrassment but I am now entirely certain I've done the right thing because I suspect there's a LOT of others reading this, going through the same anguish.

[jamesbrown]

Agree. Hopefully a few accountants etc. will be watching too and can give some solid advice...

[cojak]

as I said on page 1, I intended posting this under a different account because of the embarrassment but I am now entirely certain I've done the right thing because I suspect there's a LOT of others reading this, going through the same anguish.

[simes]

as I said on page 1, I intended posting this under a different account because of the embarrassment ...

Your undoubted pain notwithstanding, is the nomenclature oliverson any more known to us or the world than any other handle one could temporarily choose for you?

How much more virtual can virtual embarrassment actually be?

[jayn200]

Directors loan is an asset not a liability and it looks like from your post it's due soon. Do you have any intention of paying it back?

Your company's assets can pay your short term liabilities. Your company just needs to collect on your directors loan.