Creditors Voluntary Liquidation

[spec0203]

If you are a visa-national UKVI will cross check with HMRC to see if things tally.

I 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.

[tractor]

...

I 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.

Not 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'?

[spec0203]

Not 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 was a British Citizen before leaving UK... I am a British Citizen from 2013. Company made insolvent in 2014 and left UK after that.

I went to my home country to take care of my parents and they need some one on a daily basis for few months.

[BrilloPad]

I was a British Citizen before leaving UK... I am a British Citizen from 2013.

When 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.

[meridian]

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/

[spec0203]

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: Grant Thornton - Technical notes: unlawful dividends

Thanks 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.

[spec0203]

When 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.

My english gave a wrong sense.

Sorry. I am a british citizen from 2013 and company made insolvent in 2014.

[stek]

Thanks 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.

The 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.

[BrilloPad]

The 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.

Depends if the OP goes bankrupt or not.

[spec0203]

Depends if the OP goes bankrupt or not.

I took dividends of 30k and paid overdrawn account. My CT is 15k.

Can I pay this 15k over 3 years? or Can I negotiate this CT amount with liquidator?