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FUTURE STRATEGY CASE STUDY

How we dissolved a taxi operation with a bounce-back loan they couldn’t afford to pay

We can talk you through all of your options and find you the right solution

Application submitted

October 8, 2021

Date dissolved

January 7, 2022

Company assets

£11.00

Company debt

£40,300.00

We were approached for advice by a small taxi company who had worked as a contractor for another taxi operation for 6 years.  Following IR35 changes in legislation in April 2021, the director of the taxi operation had decided it was in their best interests to close the company and they ceased trading in August 2021.  They needed advice on the best option for closure. Dissolution or Liquidation.

We discussed in detail the various options with our client and decided to proceed with the dissolution of their business using Future Strategy’s support and guidance.  With very limited funds dissolution was their fastest and most cost-effective option for closing the company.

The challenge

The company had VAT debt and a bounce-back loan but had assets of only £11 in the business account.  The client could simply not afford the loan repayments that the bank was starting to demand.

The bounce-back loan was not personally guaranteed by the director and therefore the liabilities for repayments sat solely with the business.

Future Strategy had the challenge of achieving a successful dissolution of the company with all associated debts to deal with.

How we helped

As soon as we had received payment, a form of ID and a signed contract from our client, our case management team set to work.

We changed the company address to our own address.  The Director was receiving post from the bank and HMRC  to their personal address, which understandably was causing worry and concern.

We wrote to all creditors and explained that the business was insolvent and an application to close the business had been submitted.  A DS01 was submitted to Companies House on 8th October 2021.

When the bank began to chase the company loan repayments more aggressively, Future Strategy offered advice and reassurance to the client.  The bank could not pursue the director personally for payments on a business bounce-back loan.

The outcome

The company was officially dissolved on 7th January 2022 and all debts dissolved with it.  Although the bank did attempt further communications with our client, these were forwarded to us and dealt with promptly. The client left a 5-star review on Trustpilot – expressing gratitude that his incredibly stressful situation had been resolved with both speed and professionalism.