Fear the worst

[Janemorley74]

So as you may know i have had a VAT compliance check and i believe the worst may now be a reality and i am unable to afford
outstanding vat from three years. I think I am going to run in to trouble and i need to know what options are tyere for me as a director.

Is the SpongeBob plan still something? - I was trying my hardest to keep the business going but the outgoings and poor profit on sales look to have doomed me!

is it a criminal offence not to pay VAT or HRMC? - or do they wind up and recover from the limited company?, I also have another company, is that effected or protected?

thanks
Jane

 

[Scalloway]

If the business is not making money then there is no point in keeping it going. HMRC will object to strike off but nothing much will happen.

Nothing will happen to your other company.

 

[Socio South West]

@Janemorley74 I don't think you are going to run into trouble - You are in trouble!

If you have been paying yourself rather than paying the VAT then clearly the business is not making sufficient margin.

You personally will not be charged with a criminal offence, but unless action is taken to resolve the matter the company may have proceedings against it for the debt.

You need to crunch some numbers to see if you can come up with a plan to clear the arrears AND keep the VAT up to date going forward AND keep bread on your table.

I would suggest that if neither of the ANDs above can be satisfactorily met, @Scalloway's advice is best followed.

 

[DWS]

Nothing will happen to your other company.

That may not necessarily be true, it may depend how separate the 2 companies are, is the other Company already VAT registered?
Depending on the ties between the 2 companies HMRC may decide that both need to be registered for VAT and that if not registered your other Company may have to be as well.

 

[Lisa Thomas]

Hello

There is too little informaiton in your post to be able to advise you. You really should speak to a licensed IP to explore your options.

My video has some guidance which may help you choose which one applies to your company's circumstances the best:

The different options for insolvent limited companies with Covid related and other debts

In this jampacked video, I explore the following options available for insolvent limited companies: Compulsory Liquidation, Creditors Voluntary Liquidation (...

youtu.be