I have a client who is considering closing down their limited company. They ceased trading about 6 months ago but still have some transactions going through for insurance and repayments for a business loan which has approx £8k outstanding.
My question is, if the bank allows them to transfer this business loan out of the business so they can repay this out of their personal bank account, can I reflect this in the accounts by transferring the balance outstanding to the directors loan account?
Also, if they did n't close the company down but kept it open with just the tranasactions repaying the business loan what would the company then classified as, would it be able to be a dormant company?
Thanks
Replies (2)
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Yes to part A if all transactions were transferred into sole name
You won't be able to fill in Dormant Company Accounts form for Companies House for part B, and there will be a loss so you will have to prepare a tax comp