To ask if any accountants can help me with a quick question? Heeeeelp!

[somewhereoverthechipshop]

OK this is really boring and not really an aibu, but hey ho. Can't find any clear info online. DH has a Ltd company that lost most of it's work due to coronavirus. Diary was cleared overnight. Ended up taking out a ten grand bounceback loan to survive.
Anyway, we want to close the company. Can't afford liquidation costs.
Question is do we still have to pay back the bounceback loan if we close the company? Or will it be 'written off'?

Sorry in advance for my dull question!

www.businessrescueexpert.co.uk/hmrc-and-insolvency-service-clarify-their-approach-to-bounce-back-loan-debts/

How much are the liquidation costs?

www.realbusinessrescue.co.uk/bounce-back-loan-support/can-a-company-write-off-bounce-back-loans

Think it would be very difficult to just close the company without consequences according to this.

They are about £5000

You need to take proper advice but my understanding is that it depends on how you want to liquidate. If you want a solvent liquidation then no, you have to settle the debt.
If you declare the company bankrupt then you go to a court.
But I’m not an expert!

Read this link

Thank you for the above link

If you liquidate the company (and it is limited) then the bounce back loan would be written off.

@Teeheehee1579

If you liquidate the company (and it is limited) then the bounce back loan would be written off.

It depends on the type of liquidation.

You really need to speak to an insolvency advisor rather than an accountant (although a few accountants also hold an insolvency qualification).

You need professional advice from an IP really but if you sit it out for a couple of years and don't file anything it will eventually get struck off. HMRC will object at first and string it out but eventually it will go.

Hi OP, I work in this area. If you’re paying £5k liquidation costs (I assume those costs are the liquidator’s fees?) then the liquidator really should be giving you advice on this.
In short it depends what happened to the money the company received as a bounce back loan. If DH took it as dividends then yes, it should be returned. If it paid legitimate and unconnected trade creditors then it won’t need to be returned.