How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alex J. Your Own Question
Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3843
Experience:  Solicitors 2 years plus PQE
Type Your Law Question Here...
Alex J. is online now

Hi, how do i go about closing my Ltd company down we our finding

This answer was rated:

Hi, how do i go about closing my Ltd company down we our finding it hard to keep trading from non payments from other company the company don't really have anything as its in my sole trader name still whats my next step because i'm behide on VAT at the moment

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

Do you have any other creditors? Do you intend on paying the VAT Bill?

Kind regards

Customer: replied 4 years ago.



Yeah we have other creditors to pay but the company don't have the funds to pay them but i could pay the VAT over time






Thank you.

Do you have an accountant?

What you should do is put the company into liquidation but this is very expensive.

What I would suggest you do is speak to an account and arrange to stop trading as soon as possible. You potentially committing wrongful trading under the Insolvency Act and that could hold you personally liable for the company debts. This is where you trade a company having known or ought to have known it was insolvent.

Once you have stopped trading in all likelihood either one of your creditors will seek to wind the company up, or if this has not been done after three months you can seek to have he company dissolved.

The most important thing is to go and speak to an account and see how you can cease trading in an orderly fashion.

Kind regards

Alex J. and 2 other Law Specialists are ready to help you