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Limited company with a credit card goes into liquidation - HELP PLEASE!

Ags1980Ags1980 Just JoinedRegistered Posts: 3
in General accounting discussion
Hi, can someone help here please. A quick question - what will happen to a limited company credit card with an outstanding balance to pay when the company is being closed/liquidated. Thank you in advance for your answers.

Comments

  • KernowAccountantKernowAccountant Settling In Nicely Registered Posts: 120
    What does the rest of the balance sheet look like... assets, liabilities, capital and reserves? Numbers would be good.

    Has an IP been appointed?
  • Ags1980Ags1980 Just Joined Registered Posts: 3
    Hi, the company wasn't trading at all but a director has been using the credit card for his private purchases. He has been having difficulties repaying the balance and now wants to close the company.
  • kelsmickkelsmick AberdeenRegistered Posts: 89
    I think you're probably better hiring an accountant to dissolve the company correctly. Had the company traded at all? It sounds like the only reason he want's to close the company is because he can't repay his personal purchases. I imagine there would be some kind of tax implications for this.

    If the credit card transactions were his personal purchases would this not be treated in the same was as a directors loan? So you would need to declare this on his self assessment and depending on the value you may need to report this as a "benefit in kind"
    www.essencebookkeeping.co.uk
  • KernowAccountantKernowAccountant Settling In Nicely Registered Posts: 120
    Simple, the director repays his loan account which in turn settles the credit card liability.

    There may be a BIK. There may be s.455 implications.
  • Ags1980Ags1980 Just Joined Registered Posts: 3
    edited September 2015
    Thank you for your answers. Much appreciated. What if the director is having difficulties repaying the loan? Can the company still be dissolved? The credit card/loan account balance is around 3k.
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