Closing Limited Company with A Bounce Back Loan Implications

How long does an insolvency case take?

Liquidation can be a long and harrowing process but that doesn’t mean that you have to go at it uninformed.

An insolvency case can range from one to two years but it’s not unheard of for them to last longer. The rule of thumb is, that the size of the liquidation is a good barometer for the length of said liquidation. In the case of compulsory liquidation, three months seems to be the general average between the initial threat and the end-of-court proceedings. Although in either case, all time frames presented are just the time it takes for liquidation approval.

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What do insolvency companies do?

An insolvent company is a company whose assets are not enough to handle its debts and liabilities. It is a common occurrence for an insolvent company to be unable to pay off its debts.

What happens when you go into insolvency?

When one goes into insolvency, the company is forced to close down due to being able to pay off its debts and liabilities. There are two forms of insolvency: compulsory liquidation and voluntary liquidation.

What is the difference between liquidation and insolvency?

Insolvency is the state of being unable to pay your bills and debts. Liquidation is the process a company must go through once they have been deemed insolvent.

Can I liquidate my company myself?

Only a licensed insolvency practitioner can liquidate a company. As a result, you are unable to liquidate your own company unless you have been licensed for such a task.

Can an accountant do liquidation?

While only a licensed insolvency practitioner can handle the liquidation process of a company, your accountant can definitely offer some guidance and assistance as the process takes place. Though this is up to your discretion only. Whether or not you allow your accountant to help is up to the position your company is currently in.

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How much does insolvency cost the UK?

In the UK, the insolvency fee falls within the range of four thousand to five thousand pounds but keep in mind that the size of the corporation will affect these prices. Not to mention that any small limited companies will have to contend with the price of VAT.

Can a company be struck off with a bounce-back loan?

Unfortunately, you can not strike your company off unless you have paid back your bounce-back loan. in situations such as these, your best course of action is to liquidate your company.

What happens to a bounce-back loan if a company closes?

During the process of liquidation, a bounce-back loan becomes unsecured debt as it is not secured against the company’s assets. Fortunately, this means that the lender must pursue the government for repayment in full.

Can I close my business with a BBL?

While it is certainly possible for a company with an outstanding bounce-back loan to be liquidated through a dissolution process, there exists a strong possibility that such a dissolution would invoke objections due to the debt being an unsecured one.

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham.

What Is a Notice To Complete A Tax Return letter ?

What does it mean to be informed to file a tax return?

A “board officer” sends a “notice to file,” which tells the taxpayer that they need to file a tax return for 2022.

Some taxpayers get a paper tax return with a reminder to file in the mail. This depends on what the taxpayer needs based on how they have filed in the past.

The deadline is written on the letter, and action is necessary.

Do you get reminders from HMRC to file a tax return?

You might not even receive any paper correspondence from HMRC informing you that you need to file a return. You may instead receive an email reminder that you must file a tax return. If you joined up for HMRC’s digital self-assessment email reminders service, this should only happen to you.

What is the purpose of the self-assessment letter I received?

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Is it necessary for everyone to file a self-assessment tax return?

Every year in April/May, HM Revenue and Customs distribute Tax Returns – or a notice to file online – to everybody in the Self-Assessment system. You must complete a tax return & submit it to HMRC if you get a tax return or a notification to file online.

Under Self Assessment, some taxpayers are required to file an annual tax return (often referred to as a form SA100) detailing their dividends and capital gains, as well as claiming any applicable allowances & reliefs.

Unless their trading income is exempt under the trading allowance, self-employed individuals were required to file a yearly Self Assessment tax return. It is irrelevant whether you earn a capital gain from your self-employment or whether you start trading as a self-employed individual later registering.

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What if I don’t complete my self-assessment?

You’ll incur fines if you don’t file your return and pay any taxes owed on time – and there may be further penalties. So don’t put off filing your tax return until the last minute, and pay whatever taxes you owe with whatever information you have – even if you need to modify it later.

How do I opt-out of self-evaluation?

When you stop being self-employed, you have two options for notifying HMRC. Calling HMRC at 0300 200 3310 is one of them.

If you work in the construction industry (CIS), you can phone 0300 200 3210 instead.

If I’m on PAYE, why do I have to conduct a self-assessment?

You may be required to file an additional Self Assessment tax return if you are a director of the company, generate money that is not taxed under PAYE, or have untaxed income. This could include interest that has not been taxed before being given to you or rental income.

Must I file taxes if my income is less than £1,000?

You don’t have to tell HMRC if your yearly gross income from these is £1,000 or even less unless you can’t use the allowances. You must register for Self Assessment and file a tax return to report your income.

How can I tell if I’ve signed up for self-assessment?

If you’re unsure whether or not you’ve registered, you can call HMRC with your National Insurance number to find out.

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham.

Claiming Tax Relief on Your Cryptocurrency Losses (Luna)

Tax return filing for relief on Luna Cryptocurrency losses.

We released an article some years ago that examined how cryptocurrency revenues may be taxed. However, you may have lost money when the market crashed. As a result, this post will go over your choices for seeking tax relief on cryptocurrency losses.

The latest guideline from HM Revenue now provides some insight into obtaining tax relief on cryptocurrency losses – but only for individuals. HM Revenue has yet to issue their business and company guidelines. Despite the appointment of a cryptoassets task force by the chancellor, no special tax law for cryptocurrency transactions has been implemented.

How do I declare crypto losses on my taxes?

Individuals investing in cryptocurrencies are most likely subject to capital gains taxation. As a result, requesting tax relief on cryptocurrency losses will be subject to capital gains tax laws.

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What expenses can be deducted when calculating a loss?

Certain expenses are deductible when computing your loss, and these are as follows:

  • The first payment in money for the cryptocurrency.
  • Transaction fees paid prior to a transaction being posted to a blockchain.
  • The initial ‘expense’ of exchanging one cryptocurrency for another.
  • Any advertising spent on behalf of a buyer or a vendor
  • The expenses of valuing or apportioning assets or liabilities in order to determine profits or losses. This might include the cost of a software subscription to calculate gains or losses.
  • Professional expenses for establishing a contract for the purchase or sale of cryptocurrency

In these cases, however, you cannot claim for the costs of mining activities (such as equipment).

How much of a loss can you claim on crypto?

If you still possess cryptocurrency and it has become worthless or of minor value, you can crystallize capital losses. Simply put, a negligible value claim considers the cryptocurrency to have been disposed of and reacquired at the sum mentioned on the claim.

Because bitcoin is pooled like shares, the insignificant value assertion must be made in relation to the whole pool, rather than the individual cryptocurrency units/tokens.

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Making a claim of minimal worth

To make an insignificant value claim, the following conditions must be met:

  • The cryptocurrency must be owned at the time the claim is submitted.
  • You must indicate the cryptocurrency’s value at the time of the claim. There is no formal definition, however according to HM Revenue, an asset has minimal value if it is worth next to nothing.

Reversing a claim

You can backdate an insignificant value claim if the following requirements are met:

  • You possessed the coin at the period mentioned previously.
  • At the time, the cryptocurrency had lost its value. The earlier time must be no more than two years prior to the start of the tax year in which the claim is submitted.

For example, you may file a claim on April 5, 2020, and it would be carried back to April 6, 2017.

This might be beneficial if you haven’t generated any capital gains in the current tax year but have in the prior two. Because your cryptocurrency must have already lost value at the time the claim is being backdated, this will be relevant only if the prospect of a negligible value claim was previously disregarded.

Tax on lost or stolen crypto in the UK

You may misplace your private key, rendering you unable to access your cryptocurrency. The private key still exists, but you no longer have access to it. Likewise, the coin is still there on the distributed ledger. As a result, losing your key does not constitute as a disposal for Capital Gains Tax purposes, and no loss may be claimed.

However, if you can demonstrate that there is no chance of retrieving the private key or accessing the cryptocurrency stored in the related wallet, you may be able to make an insignificant value claim (see above).

There is always the possibility of being a victim of theft or fraud if you invest in cryptocurrency. Because the individual retains ownership of the assets, HM Revenue does not consider theft to constitute a disposition. They have the right to retrieve them as well. This implies that victims of theft cannot claim a capital gains tax loss.

Furthermore, if you do not get the cryptocurrency for which you paid, you may be unable to claim a capital loss.

If you pay for and get cryptocurrencies, you may be able to make an insignificant value claim if it later proves to be worthless.

Gm professional accountants have offices located in London Canary wharf, London Wimbledon ,Ilford Essex and Birmingham.