Company insolvency advice please

ihategossips

My old company has outstanding tax debts which I'm not able to afford. I'm in the middle of closing the company account etc .. would I be able to liquidate the company and if I did would i loose my home? company was for a single contractor only.

philnicandamy

have you spoken to BDL? (business debt line)

http://www.bdl.org.uk/

ihategossips

I've done an online assesment and I'm waiting for the reply but not sure how long it takes for them to get back to you so thought someone on here might know. Circumstances have changed completely since contracting and this debt is making me stressed and worried sick about not being able to pay it back.

kew63

ihategossips wrote: »

I've done an online assesment and I'm waiting for the reply .

Fairly sure Buisness Debtline only take phone calls, so sure you've got the right one ?

They are increadibly helpful and staff are very knowledgable.

Was your company a sole trader, what type of tax debt is it VAT or Self Assessment or PAYE.

If Self assessment are you sure that you have allowed for evry possible allowance you can, e.g mileage, losses on the business. Our accountant was pretty useless and hubbie's tax bill probably could have been lot less with a decent one on the case.

With Tax you do have a right for time to pay, but they do expect to see a realistic payment schedule that you'll adhere to and it will pay debt off in a reasonable amount of time. We started a payment plan which they were happy with but the other creditors were the problem.

It maybe worth talking to your local Tax Debt Recovercy officer and see what terms they might be able to accept. At least then you would know what is possible.

Not an expert on Tax by any stretch of the imagination but my hubbie closed his business (Sole Trader) in April and had very large tax debts, VAT personal & PAYE. He went BR but had other debts as well.

More than welcome to contact me if can help at all, happy to share any of the info we managed to get together.

Also maybe worth thinking about seeing an Insolvancy Practioner, there is a scheme to give free initial consultantion. For our situation it was the most helpful & informative.

ihategossips

Thank you for the reply.. the tax is paye I think... I was contracting but was out of work on an off and couldn't pay my tax for one year.. amount owed is in region of £13,000.00. Started a repayment plan and then lost a contract when the banks all started going wrong! I'm in full time employment but am now pregnant and don't qualify for SMP so any money i have is going towards all my bills, mortgage etc and there really isn't anything left to pay this off. Will be a complete nightmare next year too when I have to survive on ma which won't even cover my bills let along mortgage etc..

ihategossips

Also did you manage to hold onto your home even thought your OH went bankrupt?

kew63

House was in my name and he hadnt lived their long enough to be able to claim any BI, so house wasnt part of BR at all.
Obviously a house can be at risk if you go BR but that's by no means guarenteed. I know it's scary but promise it's much better to find out all the facts, and speak to someone to find out what BR would mean for you. Once you know, it may not be what you want to hear, but at least you will know your options. Everyones situation is so personal and what happens for one person isnt going to be the same for you.
It might be that in your circumstances and the size of the debt that a DRO maybe a better choice. But speak to one of the charities as soon as you can. They are very helpful and once they go through your own situation they may even be able to lay out all your options. You'll then know exactly what you are facing, instead of this terrible situation at the moment where you are just worrying yourself sick.
Promise it will feel better once you take back some of the control over your situation, and any time you need a friendly ear to talk it through this is a great place to come.
So go on ring them & let us know how you get on

Take care :-)

ihategossips

Thank you , I've save no to my phone and I'll give them a call when I get in later.

maxmycardagain

ihategossips wrote: »

My old company has outstanding tax debts which I'm not able to afford. I'm in the middle of closing the company account etc .. would I be able to liquidate the company and if I did would i loose my home? company was for a single contractor only.

was the company a Ltd company? (you ask about liquidation,etc)

Liquidating a ltd company is far easier than going bankrupt, and the two are rarely inter-linked unless you (as a director) gave Personal Guarantees, which i doubt you would have to HMRC.

If there were no PG's then the tax debts attached to the ltd company are destined for the bin, unless HMRC can prove fraud.

ihategossips

it is a limited company and I did not give any personal guarentees.. who would I speak to about liquidating the company? I tried to contact Inland Rev but couldn't as it was after 5.

fiveyearplan

Give Business Debtline a ring and see what they have to say.