advice

Discussion in 'Insolvency' started by Contractor18, Jan 30, 2018.

  1. Contractor18

    Contractor18 UKBF Newcomer Free Member

    3 0
    I have read all the previous posts to try and get a decent understanding of my options.

    I have been contracting on a daily rate for the last 6 months through my own limited company (I was told this was better than an umbrella company).

    I have basically been taking what I though was dividends (although my latest company health check from accountants says DLA - I have asked them to sort this out)

    My contract has finished and it looks like I will be unable to find any more work...

    I have a CT bill of approx £3k outstanding and about £1000 VAT (although I have £1k in bank account ready to pay this)
    I am unable to pay the CT bill - its my fault for not asking enough questions from the accountant but it just seemed all contractors were taking money once a month.

    Do i have to wait 3 months before sending the letter to HMRC to close the company?
     
    Posted: Jan 30, 2018 By: Contractor18 Member since: Jan 30, 2018
    #1
  2. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,272 720
    You should have asked them for the maximum amount you can draw each month.

    That's why i give my Contractor Ltd's a free spreasdsheet when they sign up so that they know how much they can draw leaving sufficient reserves to meet tax debts.

    Are you able to put money back into the company to pay the tax bills or not prepared to?
     
    Posted: Jan 30, 2018 By: UK Contractor Accountant Member since: Sep 18, 2013
    #2
  3. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,272 720
    You send the letter to creditors whenever you want - you have to wait 3 months after ceasing trade before filing the strike off form at Companies House.
     
    Last edited: Jan 30, 2018
    Posted: Jan 30, 2018 By: UK Contractor Accountant Member since: Sep 18, 2013
    #3
  4. Contractor18

    Contractor18 UKBF Newcomer Free Member

    3 0
    I can't blame the accountant they are a massive nationwide firm but maybe I should of gone with a contractor accountant.

    I could try and put the money back into the bank account once I get a PAYE job but it will take a while as I will earn nothing like i did on day rate contracting
     
    Last edited: Jan 30, 2018
    Posted: Jan 30, 2018 By: Contractor18 Member since: Jan 30, 2018
    #4
  5. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    2,245 275
    I expect as there are debts, the accountants are unable to class your drawings as dividends, which is why it is classed as a DLA.

    That means it is repayable by you to the Company.

    Depending on the amount involved, it is possible you have enough to pay for Liquidation, including the £1k of cash you are holding.

    HMRC are likely to object to the strike off until final returns are filed. They may also decide to Liquidate due to the (potential) DLA.
     
    Posted: Jan 30, 2018 By: Lisa Thomas Member since: Apr 20, 2015
    #5
  6. Contractor18

    Contractor18 UKBF Newcomer Free Member

    3 0
    There isnt any debts bar the corporatation tax although this is not due yet its just what I have worked out approx estimated.

    At every point that I withdraw funds in the last 4/5 months its been profit and available as a dividend its just the accountants for one reason or another were not aware that was the intention.

    They are going to sort it out so from my understanding there shouldnt be any outstanding DLA
     
    Posted: Jan 30, 2018 By: Contractor18 Member since: Jan 30, 2018
    #6