First Year Accounts with huge corp tax

[Jeebo72]

Oops. Hope OP hasnt spent it all....

Seems a bit of a strange thing to do though - go all year and then wait to see how much your tax bill is going to be and then pay it?

Wouldn't be the first contractor to think they're rich and spend all the money they are "making". Knew a guy who started contracting in 1999 on £1000 a day and lived the 1000 a day lifestyle for 24 months. Had a bit of a shock when ye old tax man came a calling

[northernladuk]

Wouldn't be the first contractor to think they're rich and spend all the money they are "making".

What he said. We have also had a number of people on here in trouble after running hand to mouth all year. It happens more often than it should and with so many people starting contracting after being made redundant etc will start to happen more IMO.

[MarillionFan]

Wouldn't be the first contractor to think they're rich and spend all the money they are "making". Knew a guy who started contracting in 1999 on £1000 a day and lived the 1000 a day lifestyle for 24 months. Had a bit of a shock when ye old tax man came a calling

Seen that as well, end of the dot com bubble.

Business class flights everywhere. Top hotels. Champagne lifestyle.
Lease on a Ferrari.

Idiot spent all of his Corp tax. Then dipped into his VAT.

Contract market collapsed. Out of a job, couldn't get another.

They took it all, including house.

[russell]

Seen that as well, end of the dot com bubble.

Business class flights everywhere. Top hotels. Champagne lifestyle.
Lease on a Ferrari.

Idiot spent all of his Corp tax. Then dipped into his VAT.

Contract market collapsed. Out of a job, couldn't get another.

They took it all, including house.

And then he opened a tat shop?

Joking aside, don't think they can take your house. Unless he didnt have a limited company? They can only go for assets belonging to the company.

[malvolio]

And then he opened a tat shop?

Joking aside, don't think they can take your house. Unless he didnt have a limited company? They can only go for assets belonging to the company.

Oh no. Urban Myth.

If you have behaved fraudulently by, for example, spending tax monies belonging to HMRC (i.e. the VAT) or not reserving funds for tax bills you know you are going to have to pay (i.e. CT), they can -and will - come after you personally.

You're allowed to make mistakes. Once. You arent allowed to take the piss. Nor do they allow for sheer stupidity.

[russell]

Oh no. Urban Myth.

If you have behaved fraudulently by, for example, spending tax monies belonging to HMRC (i.e. the VAT) or not reserving funds for tax bills you know you are going to have to pay (i.e. CT), they can -and will - come after you personally.

You're allowed to make mistakes. Once. You arent allowed to take the piss. Nor do they allow for sheer stupidity.

What if you have to spend the tax money short term thinking you will make it back then you run into trouble? Pretty brutal if they then go after your house.

[MrRobin]

What if you have to spend the tax money short term thinking you will make it back then you run into trouble? Pretty brutal if they then go after your house.

No it's not. If you've spent money that isn't yours then your creditor has the right to get it back.

I'm sure the house would be the last option but if you've been that reckless then it's deserved...

[psychocandy]

Wouldn't be the first contractor to think they're rich and spend all the money they are "making". Knew a guy who started contracting in 1999 on £1000 a day and lived the 1000 a day lifestyle for 24 months. Had a bit of a shock when ye old tax man came a calling

Thats scary. Scary thinking about how much the tax bill would be and scary thinking that someone could be so dull!!!!

[MarillionFan]

No it's not. If you've spent money that isn't yours then your creditor has the right to get it back.

I'm sure the house would be the last option but if you've been that reckless then it's deserved...

The cheeky g't also asked me to lend him £50 after he'd told me his story. You can guess the answer.

[northernladuk]

Thats scary. Scary thinking about how much the tax bill would be and scary thinking that someone could be so dull!!!!

<cough>