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Company Strike Off

Company Strike Off

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A contractor company wants to close down.

For the past three months the only work done has been under an IR35 contract although company running costs (insurance, website etc) have been ongoing so there is a negative balance sheet (less than £1k).

The client wants to keep things tidy and clear all creditors in full except for the amount owed to them for their directors loan account.

Can the simple 'Strike Off' procedure be used with a negative balance sheet?

I had thought that this procedure could only be used for solvent companies.

 

 

Replies (4)

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Scalloway Castle
By scalloway
08th Jun 2020 21:03

If the director is willing to write off his loan there is no problem.

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Replying to scalloway:
Psycho
By Wilson Philips
08th Jun 2020 21:30

Well, there might be. A formal release might give rise to a taxable credit. So just apply for strike off and be done with it.

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Lisa Thomas
By Insolvency Practitioner
09th Jun 2020 10:17

Yes it can be dissolved.

HMRC will object if there are o/s returns.

C House will strike off after 3 months (extended due to Covid) of overdue statutory documents.

https://www.gov.uk/government/publications/company-strike-off-dissolutio...

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avatar
By Truthsayer
09th Jun 2020 10:31

'Can the simple 'Strike Off' procedure be used with a negative balance sheet?'

Yes.

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