Winding up a Limited Company

[The Shaggy D.A.]

A quick query for any accountant types out there.

I've a company that's not been active for some time that I want to close. It's got about £1,000 in the bank account, but owes me about £1,500 in the director's loan account. I'm expecting a bill of about £800 from my accountants for the year end work.

The good guy in me is saying pay the accountant, take the £200 that's left and write off what the company owes me. The unemployed bloke with no income in me is saying empty the bank account, fold the company and let the accountants swivel.

If I were to take the second option, what would be my personal liability for the accountant's bill? Usually I'd ask the accountant this type of question, but as you can see they might not give an unbiased answer
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[Tonka]

I think you'd find the Accountants will be just another Creditor and have to come after you for the money you owe (if they've done the work). I don't think that you'll be able to say the Company's now ceased so tough, as you probably have the agreement with them personally, but that's just a guess.
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[Itchy]

The agreement will be with the directors having drafted many an agreement they generally sell the debt to a collection agency if you do not pay.
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[powelly]

if there are no personal guarantees as long as you have not be negligent as a director then you have no liability.
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[yambabe]

I'd be going for option 2. Your personal liability is lmited to the amount you have invested in shares in the company whatever that is, but if you have a positive loan account balance you are just as much a creditor of the company as your accountant is.

Powelly is correct, unless you have given a personal guarantee to the accountant there is nothing he can do except apply for a winding-up order, which will cost him far more than I suspect he is willing to lose when he knows there is no chance of a payout.

I take it there are no assets other than the bank account? Has the accountant actually done any work yet? If he hasn't, may be best to tell him the company has ceased to trade with no assets and ask for any of your stuff that he has back. Closing the company is then literally just a matter of informing HMRC, filling in a form for Companies House and paying them a fee which I think is still £10..............
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