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Ex contractor, now perm really needs advice..

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    #11
    Can I ask why you have such a large directors' loan, and have you been taking money out of the company recently as a loan rather than salary/dividend?

    Have you taken out more money than leaves enough to pay CT, etc, in recent years?

    Did you discuss it with your accountant before doing it?
    …Maybe we ain’t that young anymore

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      #12
      I suspect the OP might not return to the thread.
      Vote Corbyn ! Save this country !

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        #13
        We do not have the full story here to be able to advise. Suggest OP speaks to their accountant and gets a complete breakdown of the debt and state of the company finances.
        ---

        Former member of IPSE.


        ---
        Many a mickle makes a muckle.

        ---

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          #14
          I wonder if the situation is:

          Company has balance sheet assets consisting of £18K directors loan and £400 in bank, and liabilities of £5,400 to HMRC (£4,700 and £700).

          OP is conflating those, and adding them up (rounded) to £25K, whereas company actually has net assets of £13K (18.4K - 5.4K) but only £400 liquid assets.

          If so, OP need to get £5K back into the company to pay off HMRC's £5.4K.

          Doing so would leave the balance sheet with just the remainder of the directors loan (£13K), potentially with S455 liabilities already paid.

          If the OP can't get any funds into the company, HMRC could (eventually) force closure of the company and call in the directors loan so they can get their £5.4K.

          I am not a accountant etc, and this is based on the OPs confusing information. As other have said, either the OP has misunderstood what their accountant has said, or they have been let down by their accountant.
          Last edited by Paralytic; 5 November 2020, 09:49.

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