ADVICE FOR LIMITED COMPANY

emma1801
emma1801 Registered Posts: 55 Regular contributor ⭐
Hello

What advice would you give to a director of a small limited company who has had no sales for 9 months?

The company is in its second year and he has not even been able to take a wage.

Your thoughts please.....

Comments

  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
    Impossible to say without more information! What industry is it? Why have there been no sales? Does the director have other income sources? What is the directors personal tax situation? What were the reasons for incorporation in the first place?
  • burg
    burg Registered, Moderator Posts: 1,441 mod
    As Gem says need way more info...
    Regards,

    Burg
  • emma1801
    emma1801 Registered Posts: 55 Regular contributor ⭐
    Its Project management, his clients have been based in the public sector. He works full time and deals with the limited company in his spare time, hoping to make it work for when he retires.
  • burg
    burg Registered, Moderator Posts: 1,441 mod
    Then, If he is a higher rate tax payer and the company is profitable it may well be a good set-up. If he is a basic rate tax payer then the gains are less. It may still help to keep things separate. If it is loss making then he may be missing the opportunity for sideways loss relief. As he is contracting to the public sector I know in a lot of circumstances they will now only deal with employees or Limited Companies not just self-employed.
    Regards,

    Burg
  • emma1801
    emma1801 Registered Posts: 55 Regular contributor ⭐
    Yes that is the position he is in with the public sector. Is there any thing we should be doing due to the company not trading for 9 months? He has cancelled all non essential expenditure but has had to put personal funds into the business to keep it going.
  • burg
    burg Registered, Moderator Posts: 1,441 mod
    Either he can continue to run the company and continue funding it if it's likely to be used again soon. Or you can't start the process of closing it.
    Regards,

    Burg
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