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Hi,
A friend is being forced to close her Sole Trader business due to lack of trade.
She will still be left with a £5,000 business loan to pay for the next 4 years however.
Does she have any options to minimize this expense or will it be just a case of transfering the outstanding loan to her personal account (to reduce business bank charges) as she has no need for a business account now and keep paying it until its cleared?
I was thinkng that she could somehow get some tax relief but wasnt sure how this might be done if the business is closed. Surely it is a loss but how would she handle this?
The business just isnt making enough to keep it going. She plans on walking away and starting something new all together.
She has also kept introducing extra capital into the business to keep it afloat, which amounts to around £5,000 also.
Does anyone know what she would be best doing?
I would like to offer her some advice as she doesnt have a bookkeeper or accountant, but I have never had to wrap up a business's accounts before. Any advice would be helpful. This business has been running for over 10 years and been making a profit until recently.
Her husband is employed, could any losses be transfered to his tax code and if so how would they be worked out?
Thanks
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