corporation tax

holly_hobby

antrobus wrote: »

Yes. It should be clear that the ex-director has no liability to pay any share of the CT bill by virtue of once having been a director.

Whether or not the company has any claim against the ex-director would depend on the details of the settlement made (if any) on their departure. Which would be more of a legal question than a tax question.

Exactly ....

H x

CKhalvashi

zygurat789 wrote: »

On every P&L I've seen divs come out of post tax profits

My accounts go this way, too!

I've got an OD DL account through the year, which at the end of the year goes back to £0 when Divs get distributed.

The only claim against him personally could be to run the above sequence, to remove the 25% liability, but IME, it's more likely the debt will be written off if he doesn't reply, unless it's huge sums.

CK

Any

zygurat789 wrote: »

Divs are not and never have been paid out of pre-tax profits. Do you mean "dividends paid are in excess of post tax profits and reserves"

Seriously I don't think it is that difficult to understand Holly.
That is what she (assuming it is she) is saying. And she said several times. English is not my first language and I got what she meant the first time round. IF FOR EXAMPLE THEY SCREWED UP!!! and paid dividends without calculating the tax charge first or calculated too little and now they want the money back because the dividend should have not been that much..............

OP needs to come back and confirm on what basis they are claiming the tax needs to be paid by the ex-director.. what is their reasoning. Otherwise we can keep guessing until the end of the world.

holly_hobby

Any wrote: »

Seriously I don't think it is that difficult to understand Holly.
That is what she (assuming it is she) is saying. And she said several times. English is not my first language and I got what she meant the first time round. IF FOR EXAMPLE THEY SCREWED UP!!! and paid dividends without calculating the tax charge first or calculated too little and now they want the money back because the dividend should have not been that much..............

OP needs to come back and confirm on what basis they are claiming the tax needs to be paid by the ex-director.. what is their reasoning. Otherwise we can keep guessing until the end of the world.

Thanks you get me completely .... I was wondering how else I could simplify my point for the reader, but hopefully from your post, its not too confusing to all x Hope this answers your query Z ?:)

Yes Z. you are competely right that discussions re dividend payment and/or a director loan being the issue of the CT claim, are at the moment completely speculative.

But I did hope (and thought) I'd also made it clear in my posts, that my discussing such possible factors as a underlying basis of claim (re os CT from our OPs Hubby) was guess work (at least until the OP comes back with some more meat on the bones), just in an attempt to try and deduce/direct the OP as to why the current director may believe his payment request to be appropriate in the first place. As others have speculated too.

Apologies for any confusion, hopefully we're now on the same page, and OP will be along with a bit more info to enable some positive assistance and team work .....

Holly