Insolvency advice / experience PLEASE

Discussion in 'Insolvency' started by Michelle MLD, Nov 17, 2019.

  1. Michelle MLD

    Michelle MLD UKBF Newcomer Free Member

    1 0
    I’m new to the forum and looking for some advice from a professional or from someone who has been through this.
    I appointed a liquidator a few months ago and have managed to find one that is difficult, unhelpful and scaring the life out of me! I feel that I made a mistake getting one. I assume they want to destroy my life in order to repay hmrc?
    How long will the liquidation process take? It’s been months so far.

    Will I lose my house? I have been told by the IP that I should not have received dividends. Is there an amount that would’ve been acceptable to receive to live off of each year and anything over that would’ve been questionable? Say £25k a year would be acceptable and anything over that I am liable?

    Hmrc have told the IP I owe £80k but I would say £10k of this was in fines - is it too late to dispute the large fines? Will I have to repay the fines?

    Has anyone been through this and come out the other side? Can I set up a repayment plan with the IP or does it have to go to court? Can they deduct the huge fines? Will they make me bankrupt or is an IVA the first option?
    Do I have to pay the full amount or do they accept an offer?

    sorry for the questions, I’m feeling very scared about the unknown.

    and yes I was negligent and it is ultimately my fault. I lost my way with everything a couple of years ago. Hmrc were aware of mental health but still the fines and letters came.

    I don’t know when or how this will end.

    Any advice or first hand experience very helpful.

    Thank you
     
    Posted: Nov 17, 2019 By: Michelle MLD Member since: Nov 17, 2019
    #1
  2. KAC

    KAC UKBF Ace Free Member

    1,195 269
    @Lisa Thomas will probably be along tomorrow. IPs don't work weekends :) You can speak to her here. Good luck
     
    Posted: Nov 17, 2019 By: KAC Member since: May 7, 2017
    #2
  3. Gavin Bates

    Gavin Bates UKBF Enthusiast Free Member

    667 135
    Hi

    could you confirm how much the IP is claiming.

    the liquidation can continue for a number of years if required.

    it seems the claim is likely to be for illegal dividends. You can only draw dividends if the company has reserves to do so, so they is no such thing as an acceptable level.it all depends on the company’s performance.

    The next point is then to look at what you can afford to / your personal assets and liabilities. From there you can look at what the best option is to you.

    regards

    Gavin
     
    Posted: Nov 17, 2019 By: Gavin Bates Member since: May 9, 2016
    #3
  4. KAC

    KAC UKBF Ace Free Member

    1,195 269
    Sorry @Gavin Bates . I should have tagged you as well :oops:
     
    Posted: Nov 17, 2019 By: KAC Member since: May 7, 2017
    #4
  5. Gavin Bates

    Gavin Bates UKBF Enthusiast Free Member

    667 135
    No problem
     
    Posted: Nov 17, 2019 By: Gavin Bates Member since: May 9, 2016
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

    22,762 2,737
    They probably don't want to destroy your life. However they will deal with the problems you created, which can take some time and effort.
    Taking dividends is fine if the company can afford to pay out dividends from its profit. Taking money out of the business from money owed by the company to other organisations causes you problems.
    Its a fairly common issue, people spending money from the business to keep living, even using money that should be paid to HMRC.

    You presumably have been running a directors loan account (DLA) - money taken out of or put into the business. So say you take £1k out of the business for living expenses but don't do it as wages, it would be a negative balance of £1k in directors loan account.
    However the directors loan account would be an asset of the company, one the IP will look at getting paid back to the company in order to pay creditors.

    From what people have posted some have got the IP to reduce the DLA payable in return for lump sum payment. So £75k owed becomes £25k paid back for example.
    Disadvantage for the director is that money written off to the company like that is still income. And needs declaring on tax return as untaxed income.

    Getting fines taken off - not always easy. My wife has just had 6 grand in personal fines removed, took almost 6 years though and they did send bailiffs to collect. And the evidence was staring HMRC in the face all along. Haven't tried removing corporation tax fines.
     
    Posted: Nov 17, 2019 By: Mr D Member since: Feb 12, 2017
    #6
  7. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,515 445
     
    Posted: Nov 18, 2019 By: Lisa Thomas Member since: Apr 20, 2015
    #7