Tax Issues

[jonnybags]

Ive been running as a LTD company for a year and Ive not had any advice from an accountant as yet. Ill be doing that shortly, but my question here are If i dont have all my tax money saved, do I get the chance to pay it off in my next tax year? What are the consequences of it?

 

[Williams lester]

The corporation tax will be due 9 months after the company year end.

 

[David Griffiths]

If you don't have all your tax money saved, that leads to the question of where it has gone. If you've simply taken it out of the company and spent it, then there is good possibility that you have an overdrawn directors loan account. If you've taken illegal dividends, that would have the same result.

There are two tax consequences following from that. The first is that you might have a P11d taxable benefit on the notional loan interst (and fines for not filing the P11d on time) The second is that the overdrawn loan account, if not repaid within 9 months can attract a further corporation tax charge at 25% of the overdrawn balance. That's a temporary cost, which can be recovered later on if the loan is repaid, but the tax has to be paid nonetheless.

 

[MyAccountantOnline]

 

[MyAccountantOnline]

David has given you some really good advice - you're not alone many people set up companies and dont take proper advice first, getting into all sorts of difficulties and paying avoidable penalties etc.

The very best thing you can do is to get an accountant sorted asap. Your tax bill may not be as bad as you are anticipating?

In the meantime have a look at this - http://www.hmrc.gov.uk/payinghmrc/problems/bpps.htm