Closing business account

M

Merrion

Registered User
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308
Hi,

I am in the process of terminating my LTD company (I am an IT contractor) however my business account is in credit. Could I just transfer money from my personal account to my business account to clear the deficit or is there a penalty/ tax/ applicable if I did this?

Thanks
 
Thats another issue all on its own :) The accountancy firm I was using moved its business to England and since then I am finding it impossible to receive response to emails and phone calls which is why I am asking for advice here - hoping to pre-empt anything they might say. So at least I'll be one step ahead of the matter whilst I am waiting for them.
 
Can anyone help with this? I still havent' heard from my accountant and have already done a search on AAM but didn't find any existing relevant information.
 
What do you mean your business account is in credit ?

Do you mean the business bank account is overdrawn ?

Have you a set of accounts from the start of your financial year to your liquidation date
 
If your ltd co a/c is overdrawn then you may personally pay into that to clear the deficit. In fact, the bank may already have a personal guarantee from you so that in the event of the company not having the funds, then you may be personally liable. ( check your bank documentation on the overdraft granting to see this )

If you do this, it makes you a creditor of the company, i.e. a loan by a director to the company. However this does not give you any special standing over any other creditors ( if there are any ) and if the company has no way of repaying this then you will be out of pocket. If you propose to liquidate the company then you stand as an unsecured creditor.
 
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