Loan to pay tax. Which lenders will offer this?

hodd

Yikes! Hope you’re on the mend now. At the end of the day, it’s only money, and we can’t take it with us (cliche alert!)

The company status is still active. I’ll call the debt line.

I’m planning to move abroad in a few years. I don’t want this to come back and bite me, so I’ll pay up. There is the option to strike off the company and hope the debt is forgotten about. Whilst I’ve not ruled that out, I’d always be wary of it hanging over me.

Thanks again. I went on a contractor forum to ask a similar question, and you’d think I’d committed mass murder such was the negativity. Cheers.

so_very_confused

I was told that HMRC have a presence on lots of forums precisely to have that effect! It is Corporation tax HMRC view it differently.

hodd

Could I ask what you mean by HMRC seeing Corporation Tax differently, please? Thanks again

so_very_confused

Go to UK business forums and ask what options you have. They discuss options in detail. It may well be you have to pay this money but at this point they would have to liquidate the company as there are no assets. Close the company down immediately.

Good luck

Mrs_Ryan

Have you had any payment plans with them in the past?

hodd

No, this will be my first.

woolythoughts

If its corporation tax, so long as you didn't pay yourself dividends during the period, I don't think they can touch you personally for it.

At least, thats what happened when I wound up a company a couple of years ago.

hodd

so_very_confused wrote: »

Hi
Ring Business debt line now. As it is Corporation tax and the business is in the process of being wound up you are in a better position. Seek advice from BDL I found them very helpful.
They will do a budget with you and give advice to repayments. They are often staffed by ex HMRC personnel so know their business!

Well this is still dragging on, which is to my advantage for now.

To recap, I have a limited company which still exists but hasn’t traded since the end of 2018. Due to very bad management on my part, I don’t have the funds to pay a corporation tax bill of around £9000 to £10000. The tax return is due to be filed at the end of this month. I intend to wind the company up and intend(ed) to pay the tax due.

Since then, I did indeed speak to Business Debtline. They’re very good. They reckon HMRC granting a payment plan for a company that hasn’t been trading is unlikely. Their advice surprised me, but here it is.

1. File the corporate tax return
2. Send a form DS01 to have the company struck off
3. HMRC will then do one of two things within a couple of months:
A) strike off the company and write off the debt!
refuse to strike off the company and chase the debt

As I said, I would’ve been happy to call HMRC and offer to pay a lump sum of, say, £3000 now and ask for the rest to be paid over 12 months. However, if they’re as inflexible as Business Debtline advise, the strike off option is the best one.

If (B) happens, it’ll be a few months down the line, and I’m earning quite well now and would have most of the cash by then.

So that’s the update. A very poor display on my part, but on this one occasion, trying to play fair or do the right thing isn’t the best policy. If the company was still trading, perhaps a payment plan would be granted after I’d submitted plans of turnover, etc. However, without any trading going on, why would HMRC offer a payment plan?

I’ll update as and when. Thanks again for the replies.