Help: Using Sipp money to pay Corporation tax

[Knight]

In 2014 I took out a very large dividend based on all my company earnings and invested it into an Asia investment fund which turned out to be a very poor investment decision, the fund now has practically no value any more.

I later realised that i made the investments in my name instead of my companies’ name.

A while ago i realised that i severely underestimated my corporation tax as 9k, the actual figure for corporation tax is 50k.

I trying to pay back what i can, however my contract is only 6 weeks and have sleepless nights wondering how i got myself in this situation

2 years ago i invested 20k from my company into a SIPP, is there anyway that i can retrieve the money from the SIPP and use it for corporation tax. I have contacted the pension company, HMRC but nobody seems to know how to do this

Is there anyone, that can help me out

Kind Regards

Knight

[SueEllen]

A SIPP is a pension.

If you are under 55 you can't get the money out.

I suggest you make an agreement with HMRC to pay the corporation tax back over the coming year.

This means you will be paying 2 lots of corporation tax at once, last years and this years.

[mudskipper]

In 2014 I took out a very large dividend based on all my company earnings and invested it into an Asia investment fund which turned out to be a very poor investment decision, the fund now has practically no value any more.

I later realised that i made the investments in my name instead of my companies’ name.

A while ago i realised that i severely underestimated my corporation tax as 9k, the actual figure for corporation tax is 50k.

I trying to pay back what i can, however my contract is only 6 weeks and have sleepless nights wondering how i got myself in this situation

2 years ago i invested 20k from my company into a SIPP, is there anyway that i can retrieve the money from the SIPP and use it for corporation tax. I have contacted the pension company, HMRC but nobody seems to know how to do this

Is there anyone, that can help me out

Kind Regards

Knight

For 50K Corp Tax you must have made £250,000 profit. How on earth did you imagine that corp tax was going to be 9K?

As SueEllen says, you cannot access the funds before you're 55. Any scheme that claims to allow you to do this is a scam.

http://www.moneysavingexpert.com/sav...beration#early

[jmo21]

In 2014 I took out a very large dividend based on all my company earnings and invested it into an Asia investment fund which turned out to be a very poor investment decision, the fund now has practically no value any more.

I later realised that i made the investments in my name instead of my companies’ name.

A while ago i realised that i severely underestimated my corporation tax as 9k, the actual figure for corporation tax is 50k.

Wait, what?

[northernladuk]

Is there anyone, that can help me out

Kind Regards

Knight

A good accountant. HTH.

[TheFaQQer]

A good accountant. HTH.

Not even them.

The OP needs to either negotiate with HMRC themselves, or get someone to do it for them. They made £250k profit and paid 4% corporation tax instead of 20%.

That's not going to be something that HMRC say "oh, that's a simple mistake to make, just pay it back when you're ready".

I'd start by asking the current accountant or whoever prepared the accounts why they got it so wrong.

[MarillionFan]

A SIPP is a pension.

If you are under 55 you can't get the money out.

I suggest you make an agreement with HMRC to pay the corporation tax back over the coming year.

This means you will be paying 2 lots of corporation tax at once, last years and this years.

WSS.

I still can't believe we have people who do this. Reminds me of a guy who blew the lot on hotels, cars, eating out and neglected to pay his VAT, Corp Tax or Tax.

They took his car, house and all his possessions.

Run your business properly.

[MrMarkyMark]

I'd start by asking the current accountant or whoever prepared the accounts why they got it so wrong.

A while ago i realised that i severely underestimated my corporation tax as 9k

If he is real, it looks like he does his own .

[northernladuk]

Not even them.

The OP needs to either negotiate with HMRC themselves, or get someone to do it for them. They made £250k profit and paid 4% corporation tax instead of 20%.

That's not going to be something that HMRC say "oh, that's a simple mistake to make, just pay it back when you're ready".

I'd start by asking the current accountant or whoever prepared the accounts why they got it so wrong.

Still be a good call to get a decent guy in, he can help plan long term and give advice that might help the OP sleep at night. Could be options an accountant can provide that the OP has no idea about. At worst the accountant can explain his situation, for example.. Some of the dividends would be illegal as they are not out of profits due to incorrect CT so a whole set of other issues to deal with there? Possible chance to reclassify some divis as loan and so on. Not something he wants to be doing himself.

I'd assume the fact the OP said he'd underestimated the CT that there is no accountant involved so far..