Failing Business

fatandforty
fatandforty Registered Posts: 553 Epic contributor 🐘
I wonder if anyone can help. I know it is illegal as a Ltd company to carry on trading at a loss. But when is the time to call it a day? Just got our books back from the accountant and we have lost all the profit we made the previous year and now only have £800 left plus £1700 I have been told we will get back from tax man due to making a loss. I know we can't go on much longer unless things turn around, but how long?

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Comments

  • farmergiles
    farmergiles Registered Posts: 1,693 Beyond epic contributor 🧙‍♂️
    What business are you in and are there signs that you could recover ?
  • blobbyh
    blobbyh Registered Posts: 2,415 Beyond epic contributor 🧙‍♂️
    Among other things, if you're buying goods on credit suspecting you can't meet those liabilities, you're starting to tread on dangerous ground. Google 'wrongful trading' and 'unlawful trading'.
  • fatandforty
    fatandforty Registered Posts: 553 Epic contributor 🐘
    What business are you in and are there signs that you could recover ?

    It is a small printing business. The past year has been up and down, although overall obviously down as a loss was made. However we made £5k profit in December. We have 4 months in the past 12 where we have taken no money out of the business. Not easy living on no wages!
  • fatandforty
    fatandforty Registered Posts: 553 Epic contributor 🐘
    blobbyh wrote: »
    Among other things, if you're buying goods on credit suspecting you can't meet those liabilities, you're starting to tread on dangerous ground. Google 'wrongful trading' and 'unlawful trading'.

    Thanks I am quite aware it is wrong to carry if not able to pay bills. We still can at the moment - but only barely and only cos we don't often get any wages! I will google what you suggested - thank you.

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