We are in the process of completing our client’s limited company accounts. He is the sole director and shareholder. The director had been suffering from cancer and has just recovered. However, he is unfortunately too unwell now to carry on trading through his limited company. Based on the draft accounts for the final year, the client has a corporation tax liability and an overdrawn director’s current account. However, our client does not have any funds in the company to pay off the liability nor does he have enough monies personally to be able to pay back the monies into the Co to clear off his overdrawn account. We are fortunate in as much as the fact that our fee has been covered by Standing order. He has meagre savings that will help him but he says he needs this to live on.
Client does not want us to submit the accounts to HMRC and let companies house strike off the company. We have advised him we cannot do that on the grounds that tax office may stop strike off action & come back to the director and ask for accounts? I am at my wits end what to do. I sympathise with him due to his poor health but I am also aware of his obligation. Any advice will be appreciated.
Thank you in advance for your help.