Fight to save Ltd or not

[PCTNN]

All it takes is one contract and it's the flick of a switch.

If that's all it takes why did you start the thread? Seems like you've got it all under control then. Good job, mate

[mjcp]

Is that legal?

In terms of personal insolvency (i.e. bankruptcy) they ask for and can look into transfer of assets in the previous 2 years - apparently people can see this sort of thing that far ahead and try to protect their assets - who'd have thought?

However, I'm not sure where the personal risk is coming from, short of the Dir loan. The other debts are for the PSC, not personal. Pay the CT 1st as its has interest being charged and a profitable PSC with a CT debt looks odd (after all, CT demonstrates profit, so should have been paid!). Then the VAT is an unfortunate loss for the revenue.

That leaves the BBL. No idea how that will be resolved, but the terms are quite clear: you weren't an at risk business when you applied (there is a documented definition of this, assume you did not fulfil those criteria?), you had a reasonable prospect of bouncing back at the time of application and the loan is very specific in stating the director's assets are not at risk.

As others have said, you can chip away at it from other PAYE income to eat into the DL. Beyond that HMRC are the same entity for VAT / CT so minor issues with showing preferential treatment if you pay CT 1st, but you could use TTP and make a single payment against both - HMRC will then divide as they see fit (think they either go oldest 1st or most expensive (i.e. CT due to interest) 1st, I don't recall)

Best of luck! PM if you need a call for support / my experiences (not identical, but some similarities).

M

[ladymuck]

If that's all it takes why did you start the thread? Seems like you've got it all under control then. Good job, mate

Because sometimes talking it through is the best way to consolidate your thoughts.

[oliverson]

If that's all it takes why did you start the thread? Seems like you've got it all under control then. Good job, mate

For reasons I’ve already outlined. What if it doesn’t happen? What do I face?

[fiisch]

I cannot see the government letting company directors walk away from a bounce-back loan unpaid. Otherwise it seems wide-open to abuse (or more open to abuse than it already has been!).

However, unless my maths is way off, the level of debt suggests it's resultant from a lot more than just a few months out of contract - bluntly, it suggests you've been living beyond your means (unless I've misunderstood and you have some cash offsetting the debt?).

If you think there's an opportunity to close the company, and to find a cushy permanent role to ride out the storm, I'd grab it with both hands. Good luck, the job market is tough at the moment, and there are a lot of people struggling.

I am very worried for when my contract ends (renewal very unlikely), and with lack of jobs/enforced remote working/looming IR35, it's hard to make the case to continue as a contractor.

[PCTNN]

What if it doesn’t happen? What do I face?

Bankruptcy

[Old Greg]

I cannot see the government letting company directors walk away from a bounce-back loan unpaid. Otherwise it seems wide-open to abuse (or more open to abuse than it already has been!).

However, unless my maths is way off, the level of debt suggests it's resultant from a lot more than just a few months out of contract - bluntly, it suggests you've been living beyond your means (unless I've misunderstood and you have some cash offsetting the debt?).

If you think there's an opportunity to close the company, and to find a cushy permanent role to ride out the storm, I'd grab it with both hands. Good luck, the job market is tough at the moment, and there are a lot of people struggling.

I am very worried for when my contract ends (renewal very unlikely), and with lack of jobs/enforced remote working/looming IR35, it's hard to make the case to continue as a contractor.

I reckon walking away from the BBL loan will just happen. Walking away when you personally owe the company money, is the problem.

[jayn200]

I cannot see the government letting company directors walk away from a bounce-back loan unpaid. Otherwise it seems wide-open to abuse (or more open to abuse than it already has been!).

However, unless my maths is way off, the level of debt suggests it's resultant from a lot more than just a few months out of contract - bluntly, it suggests you've been living beyond your means (unless I've misunderstood and you have some cash offsetting the debt?).

If you think there's an opportunity to close the company, and to find a cushy permanent role to ride out the storm, I'd grab it with both hands. Good luck, the job market is tough at the moment, and there are a lot of people struggling.

I am very worried for when my contract ends (renewal very unlikely), and with lack of jobs/enforced remote working/looming IR35, it's hard to make the case to continue as a contractor.

The default rates on BBL will be extremely high but yeah of course you can walk away as long as you didn't commit fraud. I almost guarantee they will verify revenue and make sure you didn't lie on BBL application. For example if you were billing 50k a year but put down 200k to qualify for maximum 50k loan that will likely get caught and they will force you to pay back part or all of the loan.

[oliverson]

Bankruptcy

That won’t happen. I have a couple of properties with equity in each. I could sell the U.K. one and plough the proceeds into my foreign place. Good luck getting at that post Brexit. But as I’ve said, I’m intent on resolving this through the correct channels.

[jayn200]

That won’t happen. I have a couple of properties with equity in each. I could sell the U.K. one and plough the proceeds into my foreign place. Good luck getting at that post Brexit. But as I’ve said, I’m intent on resolving this through the correct channels.

Sell and pay off the directors loan, that will give the company enough to pay its tax obligations, find a contract if you can and just work to improve situation.

You owe that directors loan no matter what.