Limited Company Closure (DS01) - Corporation Tax still owed

happyandcontented

hodd wrote: »

Fair enough, but aren’t you a bit worried about HMRC querying limited company expenses as you’ve stayed at the same place with a new contract?

I mean, I hope it works out for you obviously, but that’s the concern of a few contractors I know. Maybe your expenses are low.

We have not claimed any expenses since being outside IR35.

motorguy

hodd wrote: »

Thanks. That’s what I meant to say. Have HMRC made a comment to say this is unlikely? A few of my colleagues are concerned enough (the end client has recently made the inside IR35 decision) to consider moving jobs before their IR35 status changes.

http://www.itcontractor.com/hmrc-ir35-promise-to-contractors-we-will-not-chase-you-for-back-tax/

Not sure i trust them though....

hodd

happyandcontented wrote: »

We have not claimed any expenses since being outside IR35.

🙂 Sorry, I sounded like I was scaremongering there which wasn’t the case or intention, and I’m glad you’ll be OK. I ventured onto an IT contractors’ forum a few months ago to ask about my poor planning, and you’d have thought I’d have ended up on a most wanted list!

happyandcontented

hodd wrote: »

🙂 Sorry, I sounded like I was scaremongering there which wasn’t the case or intention, and I’m glad you’ll be OK. I ventured onto an IT contractors’ forum a few months ago to ask about my poor planning, and you’d have thought I’d have ended up on a most wanted list!

I can imagine, we are really out of our depth here, despite being intelligent people!!:D

JohnDorian

happyandcontented wrote: »

Thank you, so if, during the period of Umbrella company payments (tax and NI) the company has also paid £10,000 in Corproration tax is that incorrect?

I appreciate this is probably a real numpty question, but that is what has happened and it seems that more CT is accruing.

CT is paid after the accounting period so probably relates to the previous year.

Why is it currently accruing? Do you have an accountant that is accruing CT?

happyandcontented

JohnDorian wrote: »

CT is paid after the accounting period so probably relates to the previous year.

Why is it currently accruing? Do you have an accountant that is accruing CT?

Yes, we have an online system via our Accountant and it is showing CT as standing at £3000, despite us paying £10,000 about 6 months ago. Is there any way to check CT liability as we do not have that much confidence in our Accountant?

JohnDorian

If you paid 6 months ago that would have been for the period ending 9 months and 1 day at that point which is basically beginning 21 months prior to your payment. Are you sure you haven’t accrued any CT since then end of that accounting year?

I’m not sure on how you would check other than either teaching yourself how to calculate or getting a new accountant.

hodd

CT return done, strike off intention notice now in London Gazette. Let’s see what happens next.

motorguy

hodd wrote: »

CT return done, strike off intention notice now in London Gazette. Let’s see what happens next.

steampowered

Hopefully you have also sent a copy of the DS01 to HMRC and any other creditors.

If you don't do that within 7 days, you will have committed a criminal offence carrying (in theory - unlikely in practice) a penalty of anything up to 6 months in prison. This is clearly explained on the DS01 form.