HMRC PAYE debt

tech1000

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Feb 14, 2015
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Hi all
sorry if this in the wrong section (please move if needed) & apologies if its abit long winded.

I run a small company limited company who has a long trading name so we trade as something else, & to protect the trading name we also set up a dormant limited company the same as the trading name.

With one thing and another we have gone through quite a tough time in the last 18 months, so we have just managed to keep our heads above water & feel that we are just turning a corner, unfortunately to do that has meant trying the best possible way to juggle money has meant that we have got in debt with PAYE!!! (not good I know)

For some reason the paye debt has been lodged against our dormant company (has never traded) today we have received notice for a summary warrant. I have in the past tried to explain to hmrc that they have listed the paye wrong but deaf ears and all that.

Obviously the way I would like to go forwards is to sort out paying off the debt & getting back on the straight and narrow, but if we cant pay up quick enough, what are my options? neither company has any assets as such (there is assets but they were sold off a while ago to bring in some money into the business in the way guaranteeing a family loan) if it all goes wrong what is the situation with the debt being registered against a dormant company, can I wind up a dormant company?? can I wind up the main company then point out there error & then open the dormant??

sorry if this is all very strange, but im really not sure the best way forwards (if we cant sort out an arrangement to pay) we have been in business for a few years no & I just don't want to give up - not just for me but for all the staff who work bloody hard!! Also im not trying to beat the system, I just trying to see were I stand

Thank you
 

StevensOnln1

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Business Listing
Dec 10, 2011
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If HMRC are showing the PAYE debt against the dormant company then the PAYE scheme must have been registered for that company instead of the trading company. There is nothing to stop you applying for the dormant company to be dissolved but I don't know how things would stand regarding the PAYE debt as the situation isn't straightforward.
 
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Sep 18, 2013
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How much paye debt are we talking about?

What sort of time frame will the trading company be able to repay the sum demanded.

I think you also are on very dodgy grounds with hmrc with the paye debt being run up in the dormant company away from the main trading company.

They could pursue the Directors personally for the paye debt in the circumstances specified.
 
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Regarding your legal situation it sounds like professional advice would help out a lot.

PAYE debt is a difficult one being a debt to the crown, a friend of mine effectively financed this by taking out a business loan for the total amount and paying it back over 12 months. If you want more details just ask
 
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