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CT and PAYE Debt - Advice needed to close company

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kaneshi71

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May 2, 2019
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I've been director of a business since the mid 2000's, unfortunately the last few years have been a financial struggle and the company has now have racked up CT debts dating 2014- 2016 totaling around 18K.

With 2017 overdue and 2018 pending, I estimate an additional 8K in total.

Additionally there is around 5K in PAYE and NIC liabilities. I am at the point where I don't know where to turn, I need advice as there is no way this can be paid the company has no substantial assets.

HMRC have sent their demand to pay in full (or attempt to negotiate a payment plan) and I have been in contact initially to attempt to arrange a installment plan, however this cannot be arranged as there are specified charges (estimates on the PAYE) due to RTI submission errors and also the CT for last year is still not submitted. To be honest there is no way this amount can be repaid while continuing to operate. I know HMRC are soon going to apply to wind up the company as they mentioned this in our call.

At this point I just want to close the company however am concerned about the repercussions. The company bank account has no funds but is not overdrawn and there is around 2k left on a Bank loan.

Can anyone give some advice. I have seen many mentions about SpongeBob plan?

Thanks
 
Mr D said:
just be warned when you go to dissolve the company it is almost a certainty that HMRC will object - delaying the dissolution by months. companies house will eventually ignore HMRC objections.
Click to expand...

By which time Government may have enacted the legislation to make company directors personally liable for 3rd party tax debts such as VAT, PAYE, NIC.
 
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SteLacca said:
By which time Government may have enacted the legislation to make company directors personally liable for 3rd party tax debts such as VAT, PAYE, NIC.
Click to expand...
Possibly, but as the government withdrew its own finance bill (which I think this is in) because they did not want to lose an amendment vote, it may not reach the statute books before there is a general election!
 
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Newchodge said:
Possibly, but as the government withdrew its own finance bill (which I think this is in) because they did not want to lose an amendment vote, it may not reach the statute books before there is a general election!
Click to expand...

I agree, which is why I was careful to use the word "may". And the local elections certainly have the potential to colour the next finance bill anyway.
 
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Hi

Am I missing something, I am aware that the government has plans to make tax debts preferential in insolvencies next year and also that they plan to use the powers of the directors' disqualification act for company's that are struck off.

They already have the power to make some tax debts a personal liability albeit rarely used and limited circumstances but I am not aware of any new plans?

Regards

Gavin
 
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Additionally, I did notice on Companies House that our Confirmation Statement has not been submitted and is overdue Sept 2018 and states "overdue". Reviewing other comments that I've read, should this not have triggered CH to commence striking the company off?

Would the Confirmation Statement being 8 months overdue, make any difference to the steps in need to take for the Spongebob plan, ie: still waiting 3 months to submit the DS01.

I am very concerned as we work from home and have young children, I appreciate the advice.
 
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Gavin Bates said:
Hi

Am I missing something, I am aware that the government has plans to make tax debts preferential in insolvencies next year and also that they plan to use the powers of the directors' disqualification act for company's that are struck off.

They already have the power to make some tax debts a personal liability albeit rarely used and limited circumstances but I am not aware of any new plans?

Regards

Gavin
Click to expand...

The proposal in the last FA were to transfer liability for all 3rd party taxes (i.e. those where the company collects the tax as agents for HMRC, such as VAT, PAYE, NIC etc.) to the director(s) in the case of liquidation/dissolution.
 
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Appreciate the advice so far but just to bring the former question thread back:

I did notice on Companies House that our Confirmation Statement has not been submitted and is overdue since Sept 2018 and states "overdue". Reviewing other comments that I've read, should this not have triggered CH to commence striking the company off?

Would the Confirmation Statement being 8 months overdue, make any difference to the steps in need to take for the Spongebob plan, ie: still waiting 3 months to submit the DS01.
 
Upvote 0
kaneshi71 said:
Appreciate the advice so far but just to bring the former question thread back:

I did notice on Companies House that our Confirmation Statement has not been submitted and is overdue since Sept 2018 and states "overdue". Reviewing other comments that I've read, should this not have triggered CH to commence striking the company off?

Would the Confirmation Statement being 8 months overdue, make any difference to the steps in need to take for the Spongebob plan, ie: still waiting 3 months to submit the DS01.
Click to expand...

yes it appears it should have caused companies house to start process to dissolve.

as they have not done so then its down to you to take action with the ds01.
which means not trading for 3 months first.
 
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Options seem to be:

1. Liquidate the Company
2. Let HMRC Liquidate the Company
3. Try and dissolve the Company
4. Let C House dissolve the Company

You should take advice form an IP to ensure you are picking the right option.
 
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However, I am in the position whereby I cant pay an IP for advice :( I think that takes me back to attempting via route number 4 via the SB plan.
 
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