Help with winding up a business
I am hoping that someone will be able to help me. I am a relatively new sole accounting practitioner who normally takes on simple and straight forward accounts. However I have a new client and would really appreciate some advice:
The limited business is a new shop that started trading in December 2011. The old limited business is going through a voluntary wind-up process. The old business had debts to HMRC and a loan outstanding. It’s the usual scenario where ownership of one business has been taken on by a family member running the second business
The grocery store has continued to trade and a stock take took place between old/new trading days. The old business had liabilities to suppliers of about £25k, however the stock take revealed a value of only £22k. Suppliers did have the option to come and take there stock, but all opted to be paid by the new company.
My question is: Is this allowed? Can the Director of the old company be selective with her Liabilities and transfer supplier liabilities to the new company and allow others to be lost in the old company?
If this is allowable:
Where can I find further reading on this?
What is the right way to process the accounts between companies to maximise profits in the new company?
How will this affect VAT that is due next month?
Any help gratefully received
- SAGE - Filtering Inactive Suppliers/Customers 113 2
- Personal allowance 404 10
- Workshops centred around Xero 456 12
- Limited Companies, Directors Employer Registration P11D 134 3
- Scams are not always obvious 685 19
- RTI, no payroll but BIK 106 1
- P60 from HMRC Basic Paye Tools 105 2
- VAT on long lease in comercial property thathas opted to Tax 87 3
- Related party disclosures 166 3
- Input vat on my fees after deregistration 178 2
- Charity Buildings and Zero-rated Vat 73 1
- Auto Enrolment, Payroll, Small Client Advice and what to charge? 608 17
- 100% FYA, do I have to cliam all of it in 1 year? 221 4
- Vat query - EU customer requesting invoice without charging vat 244 8
- Is this legal? 622 9
- Market Value/Connected Persons 186 7
- Saying NO to a time wasters 1,988 23
- Cells from many sheets 124 2
- Taxation of rental income 204 4
- notice of consent by surrendering company group relief 137 6
- New Fangled Penalties 1,041
- Moving away from CCH software 902
- Recruitment agencies 526
- QROP pension input amounts 410
- write off loan or loan to equity swap or both 362
- Deemed Employment Payment 344
- HMRC BENCHMARK EXPENSES 307
- Unused Losses and Post Cessation Receipts 298
- EIS relief on transferring shares to spouse 217
- fraud 215