Test for Wrongful Trading

Took this off the Company Rescue webstie

The tests for wrongful trading actions include:

1.Not filing Annual Returns for the company at Companies House.


2.Not filing annual or audited accounts at Companies House.


3.Not operating the PAYE scheme correctly, failing to pay PAYE and NIC when due, building up arrears.


4.Not operating the VAT scheme correctly, building up arrears.


5.Taking excessive salaries when the company cannot afford them.


6.Taking credit from suppliers where there was no "reasonable prospect" of paying the creditor on time.


7.Willfully piling up debt.


8.When in a hole keeping digging!

Please note you don't have to tick all of the above tests to be at risk of wrongful trading!

If wrongful trading is proven, then the directors can be made personally liable for the company’s debts from the time they knew the company was insolvent.

The above is interesting to say the least and I would say our directors have ticked all the boxes!

It also goes on to say that wrongful trading is a criminal offence.

Anyone got a spare pen mine run out !!!!!