We have a new client who is faced with the following scenario. He set up a limited company and started trading about a year ago but due to excessive overheads he made a loss. He has ceased trading now. Now he owes about £10k in council rate arrears and is unable to pay this amount. We have agreed to do his cessation accounts for him. My question is: What to do with the £10k rate bill that he is unable to pay as the council are chasing him for payment? Should he declare the company as being liquidated/bankrupt? He hasn`t got enough funds to appoint an insolvency practitioner so wants us to act for all the matters.
Any help appreciated.