Can I close my LTD company with a Bounce Back Loan?
Yes. However, the only way to do this is through Liquidation. Whilst the debts lie with the Ltd company, it is imperative to understand how it was applied for and what it was spent on, to ascertain if there would be any personal implications for you, the Director.
Talk to the team to understand your situation.
Will closing affect my personal credit?
No. Having a Limited Company limits your liabilities, meaning any debts which arise within the company do NOT belong to YOU personally. However, it can impact you personally when there are things like overdrawn directors loan accounts, personal guarantees or misuse.
Talk to the team.
Am I personally liable for the Bounce Back Loan?
No, it is 100% backed by the government.
If you're closing your company with an outstanding Bounce Back Loan, the only way is through Liquidation. However, there will be an investigation into how it was spent and applied for.
Talk to the team to understand any personal implications first.
What happens if my company can't pay HMRC?
Call HMRC and tell them your situation sooner rather than later. Putting this off will only make the issue worse. Offer them a payment plan (Time to Pay Arrangement) which will allow you to pay the debt in affordable monthly instalments.
If this fails, there's always another solution. Get in touch with our team.
How much does it cost to liquidate?
Insolvency fees range from £4k-£6k depending on the firm you use and the complexity of the case. However, it is vital you seek advice as there can be hidden fees or personal implications the Insolvency Practitioner didn't address beforehand.
The Directors Helpline will assess any personal implications before beginning the Liquidation process.
Can I be a Director again?
Yes - in most cases, you can be a director again after you close your company.
However, in some instances where a company director has committed any wrongdoing, hasn't followed the correct procedures, or has previously been disqualified, you are likely to experience problems becoming a director again.
