Putting company insolvent

[Itsrainingdogsandcats]

I have a limited company which has been going for almost 10 years now.

At the beginning of last year I wasn't enjoying what I was doing, and was also having some personal issues with my partner, so I decided to look for a job to give me some financial stability and assess what I wanted to do next.

In May 2024 I got a full time 12 month contract with a company.

I have continued to pay all bills for my limited company from money in the business account, but in all honesty it's not going to be sustainable for more than a few months.

I can cancel most things but I have a bounce back loan. This is currently at £8,256.21.

I spoke to my Accountant last year and he said I can't close the business without paying that back, but I also don't have the money to do that.

Taking the new role has meant a drop in salary, but having a regular income has significantly helped my mental health so I manage financially, but also can't keep paying for the Limited company indefinitely, especially if I’m not working there.

I have spoken to an insolvency company, and they can’t tell me if doing this will affect me getting a mortgage in the future.
I still have 2.5 years left on my 5 year fixed but don’t want to jeopardise getting a mortgage later on.

I spoke to my mortgage advisor and she didn’t know.

I’m also not sure about the bounce back loan, and how to check if it’s in the business name or mine, other than calling the bank, but might that flag up to them I’ve asked?
I’m certain it’s in the business name.

I tried to call a debt line yesterday but after 20 mins on hold I gave up.

My accountant is putting pressure on me on me to file my accounts this week, which the insolvency person said I don’t have to do if I go down that route…

I'm having sleepless nights and just don’t know what to do.

I would buy myself a little more time and get the accounts filed, which would save you getting penalties from HMRC and Companies House.

It's going to cost you around a couple of thousand to go insolvent, so is it worth it?

The insolvency company said it would be £5k, but I have £3500 in the business account and they said they would take that.
I don’t know if £5k is the going rate or expensive?!

They also said if I went insolvent I wouldn’t have to file anything on companies house.

I’m just worried if the accountant files the account they’ll then invoice me, which will be about £1k…..

The bounce back loan is costing £150 a month, and it’ll take years to pay off, so with the drop in salary I’ll be struggling as once the money in the account is gone I’ll have to pay it myself, which I can’t afford.