Director Disqualification - Insolvency Service

Discussion in 'Insolvency' started by Olu Olu, Nov 13, 2019.

  1. Olu Olu

    Olu Olu UKBF Newcomer Free Member

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    Director Disqualification

    I am going through a voluntary liquidation of my 1 person IT consultancy service, didnt keep up with tax payments and got in trouble and had to go into liquidation, my fault if am honest

    Liquidator and I who I will say seemed to change behaviour from initial meetings to when i had signed with tehm, my mistake, anyway from 100k outstanding we managed to settle at 25k which is to be paid over six months, Have 3k left to pay

    Got letter from insolvency service recommeding me for disqualification, wonder if I can appeal and say I paid 25k to liquidator or thats of no importance, should I just sign and accept or try and defend myself not that there is a much of a defence

    My fear is how do I continue working as an IT contractor if sometimes I work through a limited liability company, I also have an online business where I am director, do I need to get that updated so I no longer appear as a director, just want to clean my act up and stay on the straight and narrow right now
     
    Posted: Nov 13, 2019 By: Olu Olu Member since: Mar 8, 2019
    #1
  2. Olu Olu

    Olu Olu UKBF Newcomer Free Member

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    And the case is with a business reigstered in Scotland
     
    Posted: Nov 13, 2019 By: Olu Olu Member since: Mar 8, 2019
    #2
  3. Scalloway

    Scalloway UKBF Legend Free Member

    16,162 3,416
    Which of these are you guilty of?
    • allowing a company to continue trading when it can’t pay its debts
    • not keeping proper company accounting records
    • not sending accounts and returns to Companies House
    • not paying tax owed by the company
    • using company money or assets for personal benefit
    https://www.gov.uk/company-director-disqualification
     
    Posted: Nov 13, 2019 By: Scalloway Member since: Jun 6, 2010
    #3
  4. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

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    the £75K still becomes taxable as income on your personal tax return irrespective of settlement figure. I believe the IP notifies HMRC of this as part of his role as liquidator.
     
    Posted: Nov 13, 2019 By: UK Contractor Accountant Member since: Sep 18, 2013
    #4
  5. Olu Olu

    Olu Olu UKBF Newcomer Free Member

    15 0
     
    Posted: Nov 13, 2019 By: Olu Olu Member since: Mar 8, 2019
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

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    Did you tell HMRC about the £75K untaxed income? If not then they will take it into account for your personal tax liability.
     
    Posted: Nov 13, 2019 By: Mr D Member since: Feb 12, 2017
    #6
  7. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

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    We don't specifically notify HMRC about the DLA position, except for a general report to all creditors that a settlement has been done etc.
     
    Posted: Nov 14, 2019 By: Lisa Thomas Member since: Apr 20, 2015
    #7
  8. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

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    Close companies: loans to participators: company insolvent and loan irrecoverable

    Where a company has become insolvent and is unable to pay its creditors, it is sometimes argued that the payment of tax due under CTA10/S455 (or also now under CTA10/S464A) on a loan to a participator should be waived because it will damage the interests of the company’s creditors (other than HMRC). Whilst this was potentially the case when HMRC debts took priority on a liquidation it is now unlikely to be the case.

    However if a liquidator argues as above, the loan is irrecoverable, or no return payment is forthcoming, in spite of the company’s or the liquidator’s efforts and the Section 455 or Section 464A charge cannot be otherwise discharged (e.g. by write off), a report should be sent to BAI (CT Structure) with the files for the company and for the participator to whom the loan was made.
     
    Posted: Nov 14, 2019 By: UK Contractor Accountant Member since: Sep 18, 2013
    #8
  9. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

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    Thanks for sharing - where is this from please?

    The tax point would only be relevant if there was a material dividend available to unsecured creditors.
     
    Posted: Nov 15, 2019 By: Lisa Thomas Member since: Apr 20, 2015
    #9
  10. Adam93

    Adam93 UKBF Regular Free Member

    359 71
    You'll have to trade as a sole trader with unlimited liability.

    You will not be able to run a company (even if you are not named as a director, you would still be in breach of the disqualification as a de facto director).
     
    Posted: Nov 15, 2019 By: Adam93 Member since: Jan 18, 2018
    #10
  11. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

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    Posted: Nov 15, 2019 By: UK Contractor Accountant Member since: Sep 18, 2013
    #11
  12. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,515 445
    Thank you
     
    Posted: Nov 15, 2019 By: Lisa Thomas Member since: Apr 20, 2015
    #12