Shutting Down a Limited Company

Shutting Down a Limited Company

Shutting Down a Limited Company

I often give advice to people on shutting down a limited company. It can happen to any company at any time, but it is an increasing phenomenon just at this present time.

There are various reasons why a company might fail. Among the four main reasons that we find for a company needing to close for insolvency reasons are:-

Failure to control costs: It is too easy not to keep an eye on what is being spent. Staff have no real inclination that cost control can greatly assist the profitability for a firm and so will order goods without thinking. Either put in place stringent purchase order rules or make sure that the ordering is done only by management.

Failure to pay the Crown: It is very easy not to pay the Crown debt, in the way of VAT or PAYE. The Crown is an involuntary creditor in that it relies on those who owe it money to pay what is due on time. They attempt to enforce this by making very heavy fines for those who fail to pay what is due on time. It is often the first sign for me that a company is in real trouble if the PAYE falls two months in arrears. If you are at this stage, you need to take advice now.

Non payment of suppliers: If you fail to pay your suppliers they should be on your case. If you were owed money I would expect you to chase it in. Nobody can afford to leave money outstanding for longer than the due date. The longer it is owed the less chance there is of getting it. If you owe your suppliers past their due date, the chances are that you may be in financial trouble. Take advice.

Non payment by customers: The first rule of business is cash is king. You need to get your invoices paid. If you don't get paid, you are working for nothing. It doesn't take too many months of unpaid invoices before you will be in trouble. If you have an outstanding sales ledger, you may be able to do something about it, but you need to speak to somebody.

If you need to close your business, it is likely that a CVL would be the option to take. It can happen in as little three weeks and would enable you to restart, possibly with the assets from the old business. If you feel that you may benefit from advice on this, please seek advice from an expert.

POST COMMENT

Revealing The Hidden Side Effects Of Anabolic Steroids Do You Have A Compelling Reason For Your Visitor To Opt-In? What To Look For From A Web-host? The 8 Essential Elements of a Landscaping Portfolio Check Out Barcelona Be Amused By The Many Celebrations Historical Edifices Plus Comforting Resorts Shed Ten Pounds In Two Weeks Beginning Today Erythrocyte Sedimentation Rate Evolution of Semiconductor Parameter Analyzers for Three Critical Types of Semiconductor Measurement – Part I Evolution of Semiconductor Parameter Analyzers for Three Critical Types of Semiconductor Measurement – Part II CD recorders times R23 lift heavy nature in Malata Hot Wind The Ultimate Guide About Stepladders Evolution of Semiconductor Parameter Analyzers for Three Critical Types of Semiconductor Measurement – Part III Apartment Rental Vs. Condo Rental