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    Exclamation Owe Corporation Tax & Dividends, moved overseas

    I was living in the UK for a year or so, and unexpectedly had to move to the USA.
    I worked as a contractor in the UK and opened my own business accordingly.
    During my time in the UK I racked up a rather large debt of corp tax and dividends which I'd overpaid to myself (6 thousands pounds or so) ... I had the intention of paying this off, but alas, as I had to move it became a debt.
    I had an umbrella company in the UK looking after me, and they are since trying to contact me to arrange payment via email (I have not replied yet).
    I'm now concerned about the legal ramifications of this...
    Even though I am living overseas now, am I still liable for this debt? Can they track me down here in the US, or even in my home country (Australia)?
    Can I simply state that my business has no income, and thus this debt cannot be paid?
    Please help! Any advice would be greatly appreciated!

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    Should post faster


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    Why would an umbrella company be looking after a LTD company?

    You would usually use one or the other.

    If you ever plan on coming to the UK again I would get in touch with HMRC and make efforts to either pay or wind down the company as insolvent. You never know if they would nick you at the bored for tax evasion otherwise!

  3. #3

    Umbrella Queen

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    Can you explain a little more about the company that's chasing you for the debt? If you had your own Ltd Co then there should not be an intermediary involved
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    More to the point there are treaties between UK and both USA and Oz so you can't hide and pretend the debt doesn't exist. And sorry but I don't buy the excuse that you had to go quickly so didn't have time to sort out the business. Ever heard of the internet? Or accountants?

    Perhaps you should be talking to HMRC and negotiating a clean exit before the writs arrive.
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    My post count is Majestic

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    I would forget the 6K issue. Have you seen the penalties for not paying your VAT alone?

    HM Revenue & Customs: Penalties for mistakes and delays with your VAT

    Then there is the penalties on the corp tax and possible taxation on the dividends which were illegal so would expect them to tax you on that yadda yadda...

    You can also be held personally liable if they suspect you did this on purpose so blaming the company won't work either. For example, with VAT

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    Arrange for England to win the last 3 tests and we'll see what we can do
    "Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny. "


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    kal
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    Quote Originally Posted by Ruprect View Post
    Arrange for England to win the last 3 tests and we'll see what we can do

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    Quote Originally Posted by LisaContractorUmbrella View Post
    Can you explain a little more about the company that's chasing you for the debt? If you had your own Ltd Co then there should not be an intermediary involved
    Hi LisaContractorUmbrella

    Thanks for your reply. They are not chasing me for the debt, rather they have sent me the accounts for the end of the year and are waiting for me to "OK" them to be submitted to the HMRC and Companies House.

    The umbrella company acted as the intermediary company whilst i was contracting and had my own ltd company - they managed my books, and submitted everything on my behalf whilst I was there

    I'm not sure whether my focus should be communicating with them, or the HMRC, or both?

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    Quote Originally Posted by Kanye View Post
    Why would an umbrella company be looking after a LTD company?

    You would usually use one or the other.

    If you ever plan on coming to the UK again I would get in touch with HMRC and make efforts to either pay or wind down the company as insolvent. You never know if they would nick you at the bored for tax evasion otherwise!
    Kanye, thanks for your advice. I am planning to send an insolvency letter to the umbrella company (if they are the correct people to receive this??), and then apply to Companies House to have the company struck off

    Hopefully this is an OK course of action?

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    Are you sure it's an umbrella company and not an accountancy company?

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