Looking for help/advice for real financial mess with corporation tax

[Coisty]

OK, I have got myself into a real mess with my corporation tax and I want to get some advice from people that may have been in a similar situation.

I formed my company in 2006 and ceased trading July 2009. I have not paid corporation tax at all.

Now HMRC have come knocking for the first year's corporation tax and I don't have it. The company has been wound down and I don't really have the means to pay the first year's tax let alone that for the next 2 years which they will most certainly demand.

I don't want to apportion blame (byond myself) but my accountant was terrible. Virtually impossible to contact, no advice and has never sent me any information other than VAT bills (which have been paid in full). I realize as director of the company this is my responsibility but it has got me very worried that I might have my house repossessed to pay the debt or worse still a custodial sentence for tax evasion.

Can anyone offer some constructive advice on where to go from here? As in people to contact etc? I know I will have to speak to HMRC at some point but I'd rather do that with someone on my side who can advise me what to say to them when they ask the questions the inevitably will ask.


Thank for any advice at all,

Coisty.

[LisaContractorUmbrella]

Did you accountant provide you with a set of accounts? Do you know what your liability is? Did you make a profit?

It is very difficult to give advice in these situations without knowing the facts but your best bet is to find yourself a really good accountant who can liaise with HMR&C on your behalf if necessary. There are several who give advice on this board who would be able to help you

[Clare@InTouch]

You need to get accounts prepared, if you haven't already done so. Then you can establish the liabilities and submit the necessary accounts and CT returns to HMRC. Once they know what the liability is they may agree to set up a payment plan with you (they won't agree to anything until they know what is outstanding).

Find a decent accountant, and go from there.

[Robot]

OK, I have got myself into a real mess with my corporation tax and I want to get some advice from people that may have been in a similar situation.

I formed my company in 2006 and ceased trading July 2009. I have not paid corporation tax at all.

Now HMRC have come knocking for the first year's corporation tax and I don't have it. The company has been wound down and I don't really have the means to pay the first year's tax let alone that for the next 2 years which they will most certainly demand.

I don't want to apportion blame (byond myself) but my accountant was terrible. Virtually impossible to contact, no advice and has never sent me any information other than VAT bills (which have been paid in full). I realize as director of the company this is my responsibility but it has got me very worried that I might have my house repossessed to pay the debt or worse still a custodial sentence for tax evasion.

Can anyone offer some constructive advice on where to go from here? As in people to contact etc? I know I will have to speak to HMRC at some point but I'd rather do that with someone on my side who can advise me what to say to them when they ask the questions the inevitably will ask.


Thank for any advice at all,

Coisty.

HMR&C could appoint a liquidator, liquidator prepares the accounts finds you have an overdrawn loan account, liquidator will chase the debtor (you the director).

HMR&C are putting football clubs into liquidation these days and they can do it with you.

First and foremost, get an accountant prepare accounts the CT600s.

Others things you should note:

You don't mention paying yourself a salary, if you did was it above £5,720 and have you paid any PAYE/NIC on that salary?

You don't mention personal tax returns, have these been done, if yes what dividends did you declare, was the proper paperwork drawn up?

Have you completed P11ds ? As you have an overdrawn loan account and you will have a BIK and class 1a NIC to pay on the BIK.

Maybe your where under IR35 and you paid everything as salary and there is no CT to pay.

As you say you are the director, take responsibility and seek a new accountant now, this will show willing when you speak to HMR&C.

Good luck

Robot

[THEPUMA]

Hi Coisty

Feel free to PM me and we can discuss the options available to you.

Joel Harding
Hillier Hopkins LLP

[Vallah]

It's not tax evasion, as presumably you've just not bothered to submit returns, rather than fraudulently under-declared the company income.

[Clippy]

WH(Already Been) Said

I'd take The Puma's offer up pronto to get this sorted and to start to ease your mind.

Joel - I've seen your posts one here before - do HH specialise in Contractor accounts?

[THEPUMA]

Joel - I've seen your posts one here before - do HH specialise in Contractor accounts?

Yes we do.

[DaveB]

Hi Coisty

Feel free to call me on xxxx xxxxxxxxand we can discuss the options available to you.

Joel Harding
Hillier Hopkins LLP

You might want to remove that number and PM the OP instead. That or you'll be getting spammed with junk calls in the next few days.

[TykeMerc]

PM's won't work for the OP unless Admin intervenes.

THEPUMA you might want to draw Admins attention to this thread and Coisty as he's/she's definitely in need of good professional advice on this one.

Coisty depending on what your terms of service were with the accountant you mentioned you might have some recourse against them, but mainly you have to start talking and negotiating with HMRC and do it asap. I hope you get this problem sorted out reasonably comfortably.