8 month bench, corporation tax installments due

[turbowoowoo]

SO someone (albeit in the position because of being an arse) asks for some advice and all most of you cant do is waggle your finger and pontificate!

fwiw it does sound as though you were insolvent months ago and as such should have taken action.

Please speak with your account urgently, do not put any more of your money into the company and do not take any more out!

[tractor]

SO someone (albeit in the position because of being an arse) asks for some advice and all most of you cant do is waggle your finger and pontificate!

fwiw it does sound as though you were insolvent months ago and as such should have taken action.

Please speak with your account urgently, do not put any more of your money into the company and do not take any more out!

You have been around for a few months. Give it a little while longer and you will be able to sniff out a sockie more easily.

Once you have been here a while and spent endless hours providing good advice out of the goodness of your little heart to someone who you find out ultimately is sat at their keyboard laughing their sockies off at the flame war they started, you are likely to change your mind.

Until then, I suggest you practice waggling your finger and pontificating in the quiet of your own home so that you are well prepared for how you will ultimately feel. You will be able to handle the inevitable realisation much better that way.

HTH.

[TheFaQQer]

SO someone (albeit in the position because of being an arse) asks for some advice and all most of you cant do is waggle your finger and pontificate!

The answer I gave in post 6 details the OPs financial position, based on this and his other thread. It explains clearly what he should do - repay the directors loan to the company, reduce the debt to HMRC using the £5k repayment and then repay the HMRC debt in 8 months at £500 a month as he has offered to do.

He has £20k in his bank account, £5k of which is a loan from the company, but for some reason doesn't want to recall that loan to repay the company debts.

The alternative is bankruptcy and hoping that HMRC don't see him as being negligent and go after the directors personally.

[MaryPoppins]

I'm not to sure. I can name at least 5 contractors I know that withdraw every penny the receive from their accounts leaving nil in there and then expect to pay taxes off with next years potential earnings. I know this because all 5 got canned from the role and shat themselves hence 'fessing up about their problem. Stupid situation cause it's just bad planning, they lose it at the beginning of next year anyway. There are enough stupid people out there that do this.

This. This is precisely what my ex did, in fact, as it turned out. Had absolutely no concept that the money was not personally his to spend, and was then unable to pay his tax bill.

[d000hg]

This. This is precisely what my ex did, in fact, as it turned out. Had absolutely no concept that the money was not personally his to spend, and was then unable to pay his tax bill.

The money IS his to spend. 20% of what you earn doesn't belong to HMRC, what you earn attracts tax of 20%. Setting the money aside as each invoice comes in is very sensible but is no requirement at all. Should you know you'll have to pay HMRC £20k and you have £20k of invoices outstanding there's no reason you have to keep £20k in your account.

It makes sense to treat it like the money is HMRC's though, I'm nit-picking a bit.

[MaryPoppins]

The money IS his to spend. 20% of what you earn doesn't belong to HMRC, what you earn attracts tax of 20%. Setting the money aside as each invoice comes in is very sensible but is no requirement at all. Should you know you'll have to pay HMRC £20k and you have £20k of invoices outstanding there's no reason you have to keep £20k in your account.

It makes sense to treat it like the money is HMRC's though, I'm nit-picking a bit.

Yes, true, I know what you mean.

[PeterF]

But you can't just transfer that £20k out and then back in again without considering loan/interest/BIK/etc implications, right?

[junior contractor]

Do you have an accountant? If not, get one. If you do, get a different/better one. CT is not profit kicking around in your company a/c, it is not available for the company to pay to you (with the exception of loans and associated constraints). Your company will have been running with a negative balance for some time - wrong on various levels.

Again, get some competent professional advice. Hope it works out for you.

Pete.

i have accountant, its my first year running business and wasnt expecting it to be like this , i can do better in future years

[tractor]

...

i have accountant, its my first year running business and wasnt expecting it to be like this

If this is not a wind up, one has to ask......

What, actually did you expect it to be like?

[northernladuk]

If this is not a wind up, one has to ask......

What, actually did you expect it to be like?

Free money for cars, loose women and champers baby!!