Originally posted by stek
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Creditors Voluntary Liquidation
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Originally posted by spec0203 View PostI am a british citizen... Until 2011 I was a perm.. happy days..after that new business started and got into trouble due to lack of knowledge/guidance.
Did you mean 'recently came back to the UK'?Comment
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Originally posted by tractor View PostNot sure how that tallies with your previous statement "I have left the country after the company made insolvent and came recently to UK to find a job. "
Did you mean 'recently came back to the UK'?
I went to my home country to take care of my parents and they need some one on a daily basis for few months.Comment
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Originally posted by spec0203 View PostI was a British Citizen before leaving UK... I am a British Citizen from 2013.
I go abroad occasionally - I don't stop being a UK citizen while out of the UK.
In fact - when did you start being a UK citizen?
None of this is relevant - just interested.Comment
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OP, the situation appears to be that you owed the company money, and the company owed HMRC money (corporation tax), even though you did not realise at the time due to accounts not being finalised.
You've taken too much out of the company via dividend - presumably by taking all cash out of the company via directors loan and then thinking that you could pay it back via a dividend, without considering corporation tax.
If you had done things properly, and only declared the proper dividend, then HMRC would be asking the company for the cash. However, as you have done things incorrectly in accounting and in law, HMRC can challenge the dividend declaration and you may find yourself (as director) personally liable, and as a shareholder in receipt of an unlawful distribution you may be liable to repay it back to the company, from which the company can settle it's CT.
Have a read here: http://www.grant-thornton.co.uk/en/T...ful-dividends/Comment
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Originally posted by meridian View PostOP, the situation appears to be that you owed the company money, and the company owed HMRC money (corporation tax), even though you did not realise at the time due to accounts not being finalised.
You've taken too much out of the company via dividend - presumably by taking all cash out of the company via directors loan and then thinking that you could pay it back via a dividend, without considering corporation tax.
If you had done things properly, and only declared the proper dividend, then HMRC would be asking the company for the cash. However, as you have done things incorrectly in accounting and in law, HMRC can challenge the dividend declaration and you may find yourself (as director) personally liable, and as a shareholder in receipt of an unlawful distribution you may be liable to repay it back to the company, from which the company can settle it's CT.
Have a read here: Grant Thornton - Technical notes: unlawful dividends
Took the Director loan in 2012 and paid in 2013 SEP/OCT (around) by taking dividends (both directors). Then there was no trading as the business was down and no cash flow to pay CT which was later (4 months). If there was cash flow then I would have been paid CT (which is less to dividends). CT is around 15k.Comment
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Originally posted by BrilloPad View PostWhen did you stop being a UK citizen?
I go abroad occasionally - I don't stop being a UK citizen while out of the UK.
In fact - when did you start being a UK citizen?
None of this is relevant - just interested.
Sorry. I am a british citizen from 2013 and company made insolvent in 2014.Comment
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Originally posted by spec0203 View PostThanks for the reply.
Took the Director loan in 2012 and paid in 2013 SEP/OCT (around) by taking dividends (both directors). Then there was no trading as the business was down and no cash flow to pay CT which was later (4 months). If there was cash flow then I would have been paid CT (which is less to dividends). CT is around 15k.Comment
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Originally posted by stek View PostThe fact is though is that you took money that didn't belong to you and basically you have to pay it back. It's you versus The UK Government and my money's on The UK Government.Comment
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Originally posted by BrilloPad View PostDepends if the OP goes bankrupt or not.
Can I pay this 15k over 3 years? or Can I negotiate this CT amount with liquidator?Comment
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