Coronavirus Resources Thread

[MAVLad]

Closing due to Coronavirus

I am one of those whose business will NOT survive the downturn.

I have an alternative 'thing' I am considering.

BUT I have no idea what I will need to do to close the existing business. What I need to do to inform HMRC/Companies House etc.

Any help would be most welcome . . . . . .

[Paralytic]

I am one of those whose business will NOT survive the downturn.

I have an alternative 'thing' I am considering.

BUT I have no idea what I will need to do to close the existing business. What I need to do to inform HMRC/Companies House etc.

Any help would be most welcome . . . . . .

No-one can answer this without a load of information. Simple one: does your company have a net positive or net negative asset position.

You really should be speaking to your accountant about this, not a bunch of nobody IT contractors.

[MAVLad]

No-one can answer this without a load of information. Simple one: does your company have a net positive or net negative asset position.

You really should be speaking to your accountant about this, not a bunch of nobody IT contractors.

In regards to the 'Simple one':- Obviously net negative asset position, otherwise there would be no need to close the business.

I was hoping that I could avoid the involvement of the accountant. Or maybe find someone through this forum who could advice on this specific issue.

[Paralytic]

In regards to the 'Simple one':- Obviously net negative asset position, otherwise there would be no need to close the business.

No, not "obviously". It is perfectly possible for a company to be in trouble, on the path to insolvency, yet still be in a net-positive asset position,

I was hoping that I could avoid the involvement of the accountant. Or maybe find someone through this forum who could advice on this specific issue.

Your business "will NOT survive the downturn" yet you seem to see engaging your accountant as a hassle?

You have not given a "specific issue" for anyone to give advice on. Its like saying "I want to buy a car, what would you recommend"

Now that we know a little more, some more questions: With this net negative asset position, who does the business owe money to? Any government agencies (eg, Corp Tax, VAT etc?). Have you taken out any dividends in the last year that meant any creditors could not be paid? At what point was it obvious that the business would survive? Have you furloughed any staff or taken advantage of any of the COVID government loan schemes? Has either of these happened since it became obvious the company would not survive? Do you have an accountant?

Can you see how its not as simple as you want to believe? If you do still believe it is, google "closing down company" and fill in the forms. Or get your accountant to do it.

[GhostofTarbera]

In regards to the 'Simple one':- Obviously net negative asset position, otherwise there would be no need to close the business.

I was hoping that I could avoid the involvement of the accountant. Or maybe find someone through this forum who could advice on this specific issue.

And you have spent your bounce back loan ?


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[wattaj]

In regards to the 'Simple one':- Obviously net negative asset position, otherwise there would be no need to close the business.

I was hoping that I could avoid the involvement of the accountant. Or maybe find someone through this forum who could advice on this specific issue.

Have you accounted for the taxes due to HMRC on any income that your company has received to date?

A "net negative asset position" would seem to suggest that you've spent all of your company's money without due regard for its liabilities.

Is this the case?

[WTFH]

Now that we know a little more, some more questions:
With this net negative asset position, who does the business owe money to? Any government agencies (eg, Corp Tax, VAT etc?).
Have you taken out any dividends in the last year that meant any creditors could not be paid?
At what point was it obvious that the business would survive?
Have you furloughed any staff or taken advantage of any of the COVID government loan schemes?
Has either of these happened since it became obvious the company would not survive?
Do you have an accountant?

Have you depleted the business warchest?
How long has the business been suffering from lack of income?

[MAVLad]

Thanks for the replies. You may not think so, but they have all been very helpful.

In summary, income has dried up due to the Coronavirus situation.
There are no other parties impacted on other than HMRC, who are owed.

None of the help on offer from government has been availed of. It seems inappropriate to seek government money just to give it straight back to the government.

The business would probably not be a going concern going forward, so it seems more appropriate to end things now rather than howl against the moon.

If there is any accountants who specialise in doing this kind of thing, closing a business because of the Coronavirus situation, I would welcome a conversation