Ltd Company strike-off with debt ...

[engcc]

Hi All

I have been trading through a Ltd company for contract work for the past 18 months. Due to personal financial problems I've not been able to put aside any money to cover the corporation tax. I am not VAT registered and I havent spent the money on flash cars or fancy holidays it has been purely to pay bills and cost of living expenses. I guestimate I would owe approx £10K in corporation tax so far. I want to get on the straight and narrow and my question is if I start a new company and ensure I pay all corporation tax going forward what will happen to my present company, I've not filed any accounts yet and have had notice that they will strike off within 3 months if no accounts are filed. Will they chase me for my outstanding liabilities and what options do I have to pay if this is the case ?

 

[StevensOnln1]

Corp tax is owed by the company, not you personally. If you don't file any accounts HMRC will not know how much they are owed so chances are you will be able to get your company struck off (although it may take a few attempts). Take a look at the Spongebob plan in the sticky thread in this forum.

 

[engcc]

Who would object to my company being struck off if I didn't owe anyone other than corporation tax

 

[nelioneil]

Who would object to my company being struck off if I didn't owe anyone other than corporation tax

If the company has no other liabilities or bills, then no one else can possibly object! Only HMRC could object for failing to file any returns or if they believe corporation tax is due. But if there is no assets which can be used to generate money to pay any tax, then HMRC will get nothing.

 

[engcc]

I have just received a 'warning of enforcement by taking possession of goods' letter today from HMRC regarding outstanding Self Assessment tax for 26k, will HMRC accept a payment plan for this as I want to pay it but obviously cannot pay in full ?? Please help :-(

 

[StevensOnln1]

Is this relating to your personal self assessment or the company?

 

[engcc]

i think this personal self assessment

 

[StevensOnln1]

Is the figure of £26k correct? Do you have any assets of any value that they might try to take?

 

[engcc]

A lot of that fugure is penalties as I've not filed for about 2 years, I used to be in a partnership business with my parents (pub) and about 19K is from this so its probably accurate. I rent my home and have no assets of any real value, car on finance ? I want to pay this but fear they will come down hard on me

 

[StevensOnln1]

Get the outstanding returns filed ASAP to stop penalties building even further. What do you propose to offer as a repayment plan?

 

[engcc]

ive work out I could afford £300 per month, I know thats paltry in comparison to the debt buts its all I can afford

 

[Alan R Price]

It seems unlikely to me that HMRC would accept £300 a month on account of a debt that size, but it's worth making an offer. I recommend checking out if bankruptcy is appropriate for you, or perhaps an individual voluntary arrangement (IVA). Have a look at this link: http://www.bis.gov.uk/insolvency/Publications.

 

[engcc]

Problem with personal bankruptcy for me is i work as a contractor through a LTD company and this would stop me being a director. Is there a way around this by using by partner as director then paying myself a wage ? What are my options ? Thanks for your advice

 

[Alan R Price]

If you go bankrupt you will be disqualified from acting as a director - this includes a situation where you are not formally appointed, but other people act on your instructions as if you were. It's probably best to check out an IVA, if you can't negotiate payment terms with HMRC for the self-assessment tax; although £300 a month isn't very attractive. Sorry I can't be more positive.

 

[engcc]

how long do IVA's stay on my record, and can i still be a director with an IVA ?

 

[Anonymouse72]

a quick google found this

 

[Spongebob]

Problem with personal bankruptcy for me is i work as a contractor through a LTD company and this would stop me being a director. Is there a way around this by using by partner as director then paying myself a wage ? What are my options ? Thanks for your advice

Is there any reason why you need to work via a limited company. There is nothing to stop you being self-employed while bankrupt - so long as you trade under your own name.

Barclays will allow you to have a bank account while bankrupt.

 

[engcc]

yes I work as a contactor through a recruitment agency so need a company to allow them to pay me through it. I could go PAYE but my hourly rate drops significantly if I do (i know this is because my tax and ni is taken off for me). I have heard of phoenix companies and wondered if I could operate this way with my partner as director and me as employee, then just declare myself bankrupt and be done with it....

 

[Anonymouse72]

i thought the rules had just changed with recruitment agency work, don't you have to be paye now?

 

[Alan R Price]

I have heard of phoenix companies and wondered if I could operate this way with my partner as director and me as employee, then just declare myself bankrupt and be done with it....

An IVA will be on your record for six years, but you can still be a director if you are in an IVA. What you cannot legally do is to go bankrupt and run a company with a stooge director acting as your puppet. This would be a criminal offence.