Failing Business

fatandforty

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?

farmergiles

What business are you in and are there signs that you could recover ?

blobbyh

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

farmergiles wrote: »

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

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.