The company was formed by the director to provide services as an IT consultant to the finance and retail sector.
The director had previous experience in this field through permanent employment, but having left his job to spend time travelling abroad, he decided upon his return to the UK to take up a contracting opportunity.
Contracts typically spanned 3-6 months and remunerated him at a rate ranging from £400-£500 per day
The director either worked on site or from his home, so it was not deemed necessary to secure office premises and the company utilised his home address for correspondence purposes.
Having never required an overdraft facility from the company’s bankers the company relied on its own cash flow for liquidity.
Initially, the director was continually on assignment during which time the company operated successfully.
Regrettably, irreconcilable problems within his marriage, finally led to a separation from his partner and thereafter the director became embroiled in legal proceedings.
Regrettably, the director also neglected his responsibility to ensure the company was compliant in the completion and submission of its statutory documentation and returns for HM Revenue & Customs.
Although the director eventually had resumed work normally, the company’s annual return and statutory accounts were never filed and as a result the company was struck off the register.
At the time of its dissolution, the company had funds in the bank, but also large HM Revenue & Customs liabilities, which although unquantified were seemingly greater.
Conscious of his duties as a director and anxious to close the company in an orderly manner, AABRS Limited were contacted and on their advice, the company was restored to the register and the company was placed into Creditors’ Voluntary Liquidation.