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
- Unclaimed amortisation of goodwill 20 1
- Payment for goods received on last day of quarter but refunded the next - what options are open here? 173 9
- Subscriptions not on HMRC list of approved bodies 330 4
- Zero Rated VAT on New Building 79 1
- Accountant Error 220 5
- Auto enrolment 50 1
- Deferral relief 86 2
- Why do HMRC have a different FPS liability to the amount I sent? 1,218 18
- Accountants' Error 346 7
- Builder Gifted Deposit and capital gains 671 26
- Inventory valuation of precious metals? 120 2
- Entrepreneur's relief and LLPs 85 2
- Companies House Abbreviated Accounts 411 5
- Wear and tear allowance 381 5
- HMRC Enquiry 519 3
- Daily Penalties 2012/13 232 2
- Share swap 118 1
- Cashback 351 2
- another ir35!!!! 243 2
- Settlement, or any other issues? 101 1
- Skandia using wrong address 1,434
- Nil Rate Band Trust - index linked debt by way of charge over property 737
- Any views 680
- HMRC Employers Diary 507
- International interest certificate 414
- Stamp Duty on share for share exchange 377
- Sale of business 333
- NOVA 243
- Advertising services? 231
- IRIS Open Books problem 225