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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hello I had a Limited company in building trade and ceased

Resolved Question:

Hello

I had a Limited company in building trade and ceased trading in 2008 after my brother committed suicide and my wife had heart failure. I took her back home to Africa until she got better which was one year away from UK. By the time we returned to UK the credit crunch was really bad and work was little. I worked as a sole trader on and off and was claiming jobseekers quite often. The Inland Revenue sent me bills for the period up until I went to Africa. I complained about the amount but they just kept coming and coming. I was never able to pay these Ltd company bills and I have been on ESA now for almost two and a half years, due to an accident at work. I have asked Inland Revenue to please understand my situation, but they just keep sending the bills. The Limited Company has ceased trading since 2008, as i said earlier. The insurance company has agreed to pay me for my accident on a 50/50 basis, but it will probably be nearly another year before I know how much. I have been told that the insurance company will deduct my ESA payments from my claim. What is worrying me now is; will they try to deduct the arrears for the Limited company from 2008 also? If this happens, then my claim settlement will be very little, if any!!!
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts : Hello my name is ***** ***** I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : Did you strike it off, or was it just not trading please?
Customer:

Hello Alex

Customer:

I don't know what "strike it off" means? I told them I was operating as a sole trader and not a ltd company. I don't even know what lltd company means as it was my accountant that set it up and made himself secretary. He was doing better from it than me.

Customer:

When I contacted my accountant in 2009 he basically told me the debt would be written off. But he wasn't very helpful as he lost out on my business. Getting this claim would help get me going again as I lost everything including my marriage, when I had my accident and not earning anything anymore.

Customer:

I spoke to Inland Revenue today and the guy was very understanding and told me that the computer keeps sending out these bills. He said he would speak to someone and see what can be done. He told me they have all the details on file about me not working from 2008 He said the bills should stop coming to me.

Alex Watts : You said in your question you had a limited company but refer above to a sole trader. Do you know which is it?
Customer:

I just checked with "Companies House" and my company is still valid even though it hasn't traded since 2008. To strike it off costs between £600 and £2000. I don't have this money. I have not done any advertising, accounts charged VAT or earned money etc for this company since then. I must admit I am surprised that the company name is ***** ***** live record after this length of time.

Alex Watts :

Well to strike off is an application fee £10

Alex Watts :

http://www.companieshouse.gov.uk/infoAndGuide/faq/strikingOff.shtml

Alex Watts :

You could strike it off.

Alex Watts :

If the Company is dissolved then the debts go with the company

Alex Watts :

Only if PAYE is owed then would a Director be personally liable

Alex Watts :

You should apply to strike off - once that is done the debt goes

Alex Watts :

But in any event you are not responsible for a Company debt

Alex Watts :

Can I clarify anything for you about this today please?

Ash and 3 other Law Specialists are ready to help you