Business is insolvent help needed

[ZENTRIX9]

Hi, I want to close my Ltd business with the least hassle.

I have injected over 100k of money into the business over the last few years but with the combination of, Brexit and a retail shop that didn't work out I can't carry on.

I owe HMRC about 20,000 and myself over 100k which was not just mine but family members.

I stopped trading around 12 months ago and have traded as a sole trader since then and am doing much better.

I had my accounts done up to the end of March 2019

As I paid in any money to help the business I signed over machinery and stock etc to my mother as some of the money was hers. I did this so she would not lose out, I need to know if this is legal as I am going to get a visit from HMRC.

I would like to go down the dissolution road if possible does anyone have any advise they can help me with this matter.

 

Many thanks

 

[AndyOrch]

https://www.gov.uk/closing-a-limited-company

[BazzaS]

Did you offer your Mum stock etc. in proportion to what she owed you, and on proportion to the other creditors?

 

in other words, if you owed 100k total, 5k of which is to your Mum, & you got 1k in, gave your mum £50 and other creditors £950 split between them : that is a fair split.

 

same 100k owed, 5k of which is to your Mum. You get 1k in, giving your Mum

£500 and other creditors £500: you aren’t treating your creditors equally. If an insolvency practitioner comes in (or the creditors go to court over it) the “transaction  at a preference” can be reversed

 

https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part4A/Part 2/Part 2.htm

Edited January 31, 2020 by BazzaS

[ZENTRIX9]

Yes I offered stock/machinery in proportion to the money loaned to me by my mother. But this was at least 2 years ago, and I didn't owe HMRC much at all, the only money I owed anyone was myself and my mother, I always pay for goods with the order.

Edited January 31, 2020 by ZENTRIX9