Liz
Liz_Riley
Posts: 1 Newbie
Please can someone give me some advise. My husband is a contract worker and has his own Limited company. Due to illness he is unable to work so there are no funds going into his account. We still are having to pay Accountancy Fees, Bank Charges etc, so the money is constantly going down. There is Corporation Tax which needs to be paid by about March 2019, but now there is not enough money to cover it. I am extremely worried and now looking at closing the company down. Because it is a Limited company I am not up to date on the legal side. If needs be could the money to pay the Corporation Tax come out of a personal account? Any advice I would really appreciate. Thank you
0
Comments
-
I don't think HMRC will care where the money to pay the Corporation Tax comes from, as long as it is paid ... and as you have probably discovered, HMRC may well object to the company being closed while the CT is still owed.
Will the accountants answer your questions about this side of things? You do need to make sure you are taking all the steps you need to take, and in the right order. For example, if you pay the CT from a personal account, if that leaves funds in the company account, you need to withdraw them before you close the company, otherwise getting the money out afterwards is a bit of a nightmare.Signature removed for peace of mind0 -
There will be a closure fee for closing down the company of around £900. Get your accountant to advise the best route.0
-
if you do not understand the following then your only way forward is to use your accountant
When you apply to Companies House to dissolve a company HMRC will automatically oppose it if the company owes tax.
The first thing they will look at is the director loan account to see what money has been taken out and can therefore be recovered
They will also look for any director guarantees such as those given to the bank and may seek to enforce them
They will examine in great detail what dividends have been taken and when, with a view to establishing if the director has declared an illegal dividend when the company was insolvent. They will seek repayment of that dividend.
They may attempt to challenge the level of salary taken by the director if it varied and appears to be an attempt to extract cash before the end point.
yes a company has limited liability, but it is not a simple case of walking away from your debts, given you had the income in the first place, otherwise you would not have had a tax bill. People who spend the tax money really should not be allowed to run companies.0 -
happyandcontented wrote: »There will be a closure fee for closing down the company of around £900. Get your accountant to advise the best route.
Really?
Whats that made up of? The strike off form DS01 costs £10 to submit.
Wheres the other £890 come from?0 -
-
no it is not, we charge a lot less than thathappyandcontented wrote: »I am just quoting what our Accountant told us last week. Is it not correct?0 -
no it is not, we charge a lot less than that
To be fair, we don't know what the fee your accountant mentioned covered. It might include their final fees, money you owe to HMRC etc.happyandcontented wrote: »I am just quoting what our Accountant told us last week. Is it not correct?Signature removed for peace of mind0 -
-
happyandcontented wrote: »We don't owe any money to HMRC, they owe us!! If it is £10 for the official form then we have no idea what the rest covers.
Yes you really want to get that checked. I'm closing down my LTD co at the mo and my accountant has done it as a matter of course as part of his standard accountancy fees for doing my company accounts.0
This discussion has been closed.
Categories
- All Categories
- 343K Banking & Borrowing
- 250K Reduce Debt & Boost Income
- 449.6K Spending & Discounts
- 235.1K Work, Benefits & Business
- 607.7K Mortgages, Homes & Bills
- 173K Life & Family
- 247.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards