- Original Poster
- #1
Hi all
Not posted here before but have read through forums on insolvency and hadn’t seen this mentioned before. I got into a mess tax wise with my 5 year old limited company which was totally my fault as a lot of domestic stuff happened - an emigration that went wrong , long covid , health issues and it all got on top of me - the business aspect kept going fine, my admin simply didn’t . I ended up with time to pay arrangements and this is being done ok - corp tax mainly around £30k and fines and an o/d directors loan ( following the humongous expense of family moving back) the o/d directors loan bumped up the corp tax considerably , as couldn’t pay it all back in within 9 months.
I have since set up a new ltd co and that is being operated perfectly as to be honest I frightened myself how quickly not keeping on top of tax ( and i did my own accounts as in theory it’s not complicated- now got accountant ) - I am using money from this company which hasn’t changed income wise to pay back the corp tax due and also pay down the o/d directors loan on old company - so money still going into that old account and I’m still filing that company at companies house and HMRC Only HMRC as debtor plus a companies house late filing bill .
Once it is cleared off and HMRC are fully clear can I then apply for dissolution ? even if some of the o/d directors loan technically still due back in - do I have to declare amount due as a dividend and account for it on self assessment ( will get a whopping self assessment ! ) or is it just ‘gone’ if dissolved.
I haven’t done a CVL partly because of cost as things are still somewhat tight and partly because I would rather pay back what’s due , as I’m still in business and hopefully can drag it out over 18 months to 2 years. and I can see a liquidator wanting the O/D directors loan paid asap and I can’t do that - we don’t own our home and my personal debt means I am unlikely to just be able to finance it - I also don’t want a ban or to be made bancrupt and frankly over a period my behaviour was somewhat negligent - as I say only debtor really is HMRC , so no one else likely to wind me up .
Are you allowed to keep a company up and running mainly for the purposes of paying back what’ you owe even if not using it for trading operations?
Not posted here before but have read through forums on insolvency and hadn’t seen this mentioned before. I got into a mess tax wise with my 5 year old limited company which was totally my fault as a lot of domestic stuff happened - an emigration that went wrong , long covid , health issues and it all got on top of me - the business aspect kept going fine, my admin simply didn’t . I ended up with time to pay arrangements and this is being done ok - corp tax mainly around £30k and fines and an o/d directors loan ( following the humongous expense of family moving back) the o/d directors loan bumped up the corp tax considerably , as couldn’t pay it all back in within 9 months.
I have since set up a new ltd co and that is being operated perfectly as to be honest I frightened myself how quickly not keeping on top of tax ( and i did my own accounts as in theory it’s not complicated- now got accountant ) - I am using money from this company which hasn’t changed income wise to pay back the corp tax due and also pay down the o/d directors loan on old company - so money still going into that old account and I’m still filing that company at companies house and HMRC Only HMRC as debtor plus a companies house late filing bill .
Once it is cleared off and HMRC are fully clear can I then apply for dissolution ? even if some of the o/d directors loan technically still due back in - do I have to declare amount due as a dividend and account for it on self assessment ( will get a whopping self assessment ! ) or is it just ‘gone’ if dissolved.
I haven’t done a CVL partly because of cost as things are still somewhat tight and partly because I would rather pay back what’s due , as I’m still in business and hopefully can drag it out over 18 months to 2 years. and I can see a liquidator wanting the O/D directors loan paid asap and I can’t do that - we don’t own our home and my personal debt means I am unlikely to just be able to finance it - I also don’t want a ban or to be made bancrupt and frankly over a period my behaviour was somewhat negligent - as I say only debtor really is HMRC , so no one else likely to wind me up .
Are you allowed to keep a company up and running mainly for the purposes of paying back what’ you owe even if not using it for trading operations?
