Dissolving company with taxes to pay

[matthewjacksonwilliam]

I have some assets in my LTD company and have some corporation tax and VAT to pay.

Is it possible to pay myself the assets in dividends to remove those assets from the company and then dissolve the company to avoid paying the taxes.

I want to keep this legal so is this possible? Or maybe some other way to approach this?

[WTFH]

I'm just going to re-organise your post into the two separate sections:

I have some assets in my LTD company
...
Is it possible to pay myself the assets in dividends to remove those assets from the company

What assets are they, how long has the company owned them, how much have they depreciated?

(I) have some corporation tax and VAT to pay.
(Is it possible to) ... dissolve the company to avoid paying the taxes.

It is possible to try to do it, but it wouldn't be correct.


Can you give us the rest of the story? It feels like you're giving us a taster, but not the whole story.
How long has the business been running, what value the assets are, how much is left in the company, how much corp tax the company owes, how much VAT the company owes, what your accountant has advised you, etc.

[jamesbrown]

In a nutshell, no. If you attempt a strike-off (DS01), HMRC will block it. Even if the company is insolvent and the liquidation involuntary, you have certain responsibilities as a Director (which includes not doing precisely what you suggest, aka "preference payments").

[Fred Bloggs]

Fill your boots. What could possibly go wrong with this great idea?

[northernladuk]

I have some assets in my LTD company and have some corporation tax and VAT to pay.

Is it possible to pay myself the assets in dividends to remove those assets from the company and then dissolve the company to avoid paying the taxes.

I want to keep this legal so is this possible? Or maybe some other way to approach this?

Dividends have to be paid from profit. It's bloody company 101. If you owe money then the money you want to dividend yourself isn't profit is it?

We aren't habit of advising how to commit tax evasion so you are on your own with this stupid idea.

Fill your boots. What could possibly go wrong with this great idea?

This.

It's just too good to be true that the poster has started a thread about commiting tax evasion under his full real name is it? Shame. That would be funny.

[Maslins]

Dividends have to be paid from profit.

This.
If your balance sheet is £10k cash, £10k owed to HMRC, net assets £nil, then no, you can't take a dividend.

[jamesbrown]

This.
If your balance sheet is £10k cash, £10k owed to HMRC, net assets £nil, then no, you can't take a dividend.

But before the OP asks, salary payments won't work either. The underlying issue is a preference payment made by/to a Director when the company is insolvent.

[northernladuk]

But before the OP asks, salary payments won't work either. The underlying issue is a preference payment made by/to a Director when the company is insolvent.

I don't think the OP will think about it. THey've got tax evasion on their mind and don't seem to want to understand or care how a company works.

[Fred Bloggs]

I don't think the OP will think about it. THey've got tax evasion on their mind and don't seem to want to understand or care how a company works.

Neither do the majority of posters at CUK, it seems. There's a whole world of idiots out there acting as company directors. And when something goes wrong, it's always somebody else's fault. The posts in several threads in the HMRC scheme section make you want to weep.

[matthewjacksonwilliam]

What assets are they, how long has the company owned them, how much have they depreciated?

They are cash assets of about £150k

Can you give us the rest of the story? It feels like you're giving us a taster, but not the whole story.
How long has the business been running, what value the assets are, how much is left in the company, how much corp tax the company owes, how much VAT the company owes, what your accountant has advised you, etc.

I didn't realise this would matter as I expected the answer to remain the same regardless of the answer to these questions. The company has been open for over 4 years, corporation tax owed is £20k+ and VAT owed is also £20k+. I haven't spoken with my accountant yet as he is on holiday.