New law to stop spongebob plan??

Discussion in 'Insolvency' started by CF2, Jan 8, 2019.

  1. CF2

    CF2 UKBF Newcomer Free Member

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    when is the government going to bring out the new law to stop companies from using the ‘spongebob plan’??

    And what exactly will the law be stopping?

    Thanks :)
     
    Posted: Jan 8, 2019 By: CF2 Member since: Aug 21, 2018
    #1
  2. Newchodge

    Newchodge UKBF Big Shot Free Member

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    Why do you think this may be happening?
     
    Posted: Jan 8, 2019 By: Newchodge Member since: Nov 8, 2012
    #2
  3. CF2

    CF2 UKBF Newcomer Free Member

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    I’ve just seen people post on this forum saying that the government is going to bring a new law in to stop it?
     
    Posted: Jan 8, 2019 By: CF2 Member since: Aug 21, 2018
    #3
  4. Newchodge

    Newchodge UKBF Big Shot Free Member

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    Part of the budget included a plan that directors would be personally liable to oay outstanding debts for PAYE, VAT and, possibly corporation tax. The budget has not yet been passed by Parliament.
     
    Posted: Jan 8, 2019 By: Newchodge Member since: Nov 8, 2012
    #4
  5. CF2

    CF2 UKBF Newcomer Free Member

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    Ahh okay thanks for the info! Would this only be if the director has taken out a directors loan and owed the company Monday? Or would it happen regardless of any directors loan?
     
    Posted: Jan 8, 2019 By: CF2 Member since: Aug 21, 2018
    #5
  6. Newchodge

    Newchodge UKBF Big Shot Free Member

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    VAT and PAYE are collected by the company on behalf of the government, so these sums were never the company's to spend. I don't think there is much detail yet, but I don't think a director's loan should come into it.
     
    Posted: Jan 8, 2019 By: Newchodge Member since: Nov 8, 2012
    #6
  7. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

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    Posted: Jan 8, 2019 By: Lisa Thomas Member since: Apr 20, 2015
    #7
  8. Mr D

    Mr D UKBF Legend Free Member

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    There's still 6 days to go yet.
    So far don't worry about it. Unlikely I think to get much done this year. Possible but unlikely, what with some vote next week about something taking up MPs time and potential for changes in budgets next tax year etc.
     
    Posted: Jan 8, 2019 By: Mr D Member since: Feb 12, 2017
    #8
  9. CF2

    CF2 UKBF Newcomer Free Member

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    What’s happening in 6 days? Okay thanks!

    Will companies house eventually strike off a company if it fails to submit its accounts? If so, how long would it take for companies house to do this?
     
    Posted: Jan 8, 2019 By: CF2 Member since: Aug 21, 2018
    #9
  10. Mr D

    Mr D UKBF Legend Free Member

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    In 6 days its Monday when you owe the company.

    Companies house will eventually strike off a company currently when it doesn't submit its returns too.
    Timescale measured in months. And HMRC can object if there's money or paperwork outstanding.
    Eventually companies house ignore objections that don't do anything.
     
    Posted: Jan 8, 2019 By: Mr D Member since: Feb 12, 2017
    #10
  11. CF2

    CF2 UKBF Newcomer Free Member

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    I understand now! Sorry it was a mistake in my post, was supposed to be Money not Monday! My bad.

    Brilliant, thanks for your help!
     
    Posted: Jan 8, 2019 By: CF2 Member since: Aug 21, 2018
    #11
  12. Spongebob

    Spongebob UKBF Ace Free Member

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    Ironically, the Spongebob Plan is now more effective than ever and easier to follow. I must update it.

    The change has been the introduction of the Confirmation Statement which all companies have to submit each year. If a company does not submit the Confirmation Statement it will receive within a couple of weeks notification from Companies House that the company will be struck off in two months.

    Two weeks after the expiry of that two month deadline the company is dissolved automatically.

    The significant thing about this process is that creditors need not be informed of the imminent dissolution, and that it does not appear to be advertised in the London Gazette. HMRC and the company's bank do not seem to be made aware that the company is to be dissolved!

    I have twice recently tested the procedure with companies of my own which I wished to close - one of them with a small overdrawn Director's Loan Account and the other with a Corporation Tax liability.

    Both were dissolved as per the above timeline without any fuss. The company bank accounts are still active, so clearly there is a complete break-down in the previous communications when a company is dissolved.
     
    Posted: Jan 14, 2019 By: Spongebob Member since: Dec 9, 2008
    #12
  13. CF2

    CF2 UKBF Newcomer Free Member

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    It seems that we possibly have a Spongebob plan part 2 on our hands! :D

    Would the same thing apply if a company fails to submit their accounts? Or would it only work with not submitting the Confirmation Statement?
     
    Posted: Jan 14, 2019 By: CF2 Member since: Aug 21, 2018
    #13
  14. Spongebob

    Spongebob UKBF Ace Free Member

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    It would appear that not submitting the Confirmation Statement is the silver bullet!

    The beautiful thing about it is that all that has to be done is absolutely nothing.

    No lies, no concealment, no subterfuge, no stretching the law.

    Just not submitting the Statement and sitting back for 10 weeks.

    You couldn’t make it up!
     
    Last edited: Jan 14, 2019
    Posted: Jan 14, 2019 By: Spongebob Member since: Dec 9, 2008
    #14
  15. AllUpHere

    AllUpHere UKBF Ace Free Member

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    You must be so proud.
     
    Posted: Jan 14, 2019 By: AllUpHere Member since: Jun 30, 2014
    #15
  16. Spongebob

    Spongebob UKBF Ace Free Member

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    All in the interests of research, my friend.
     
    Posted: Jan 14, 2019 By: Spongebob Member since: Dec 9, 2008
    #16
  17. AllUpHere

    AllUpHere UKBF Ace Free Member

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    Maybe we should all start scamming money from others, in the name of research.
     
    Posted: Jan 14, 2019 By: AllUpHere Member since: Jun 30, 2014
    #17
  18. Spongebob

    Spongebob UKBF Ace Free Member

    2,158 1,084
    “My advice is always based on what’s best for you and your business.”

    I couldn’t have put it better myself. The thousands of people who have successfully followed the Spongebob Plan and escaped insolvency with their lives intact have reason to be glad I do my research.
     
    Posted: Jan 14, 2019 By: Spongebob Member since: Dec 9, 2008
    #18
  19. Blaby Loyal

    Blaby Loyal UKBF Ace Full Member

    1,016 193
    Sir, use of such terminology ("scamming") just demonstrates ignorance on your part.
     
    Posted: Jan 14, 2019 By: Blaby Loyal Member since: Jun 12, 2018
    #19
  20. AllUpHere

    AllUpHere UKBF Ace Free Member

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    You've told yourself that so many times I think you actually believe it.

    Anyway, we could just go round and round in circles with this, so I think agreeing to disagree is the only way forward. :)
     
    Posted: Jan 14, 2019 By: AllUpHere Member since: Jun 30, 2014
    #20