Personal Bankruptcy and Dissolved Company

[quainoz]

Hi all,

I posted previously about how I should declare the Directors Loan I had accumulated from my my now dissolved company. There were different opinions expressed here. I don't want to dig an even bigger hole so on that score I am looking for a tax accountant/insolvency firm who can help me work out exactly how much I owe personally to IR and submit the returns. I am hoping they will then be able to advise on what to do next. Though I understand accountants take a dim view of people in my situation so I am not really expecting much help.

My latest concern is if IR make me bankrupt with the company being dissolved and I owing monies in the form of a Directors Loan - would I ultimately end up in a position where I have been bankrupted once but then HMRC go on to restore the company in an effort to bankrupt me again in roder to realise the companies assets i.e. that loan.

Has anyone heard of this happening before. Another terrifying prospect.

 

[Scalloway]

How much are we speaking about?

The advice on your other query suggested the you should declare it on your self assessment as a dividend. In 2016/17 there was no tax on the first £5,000 of dividend received.

 

[Gavin Bates]

Hi

To clarify the debt relates to the same issue your DLA, so if you were made bankrupt that would be it as your bankruptcy is for all debts that occurred prior to the bankruptcy date

Regards

Gavin

 

[Spongebob]

You can't be made bankrupt twice for the same debt.

Bankruptcy covers ALL your debts at the time of bankruptcy, whether or not they are declared or have yet materialised.

There is no way in the world that HMRC are going to go to the trouble and expense of having a company re-instated when the only asset is a debt from a bankrupt director. The debt will longer exist.

 

[quainoz]

Thnkyou all.

@Scalloway I appreciate your comment. My concern though is that I cannot support a dividend with records. Will HMRC not just make my life more difficult and accuse me of lying?

Additional to previous queries can anyone recommend any accountancy firms who are 'sympathetic' to people in my position? I want to run my self assessment by one.

 

[Scalloway]

My concern though is that I cannot support a dividend with records. Will HMRC not just make my life more difficult and accuse me of lying?

Do you think there is sufficient tax at stake that HMRC are going to pick up your return and enquire further?

 

[Spongebob]

Though I understand accountants take a dim view of people in my situation so I am not really expecting much help.

A good accountant will be completely non-judgmental and will treat your case as an intellectual and professional challenge.

A bad accountant will take a dim view of you and your situation.

There are a few good accountants out there.