Corporations Tax

[northernladuk]

I was planning to use the money for a non-liquid asset like a house deposit.

This is even worse. Your nightmare starts here.

However, in very very simple terms, is it possible to just withdraw the money from the account and pay it back before the tax is due ?

It is technically possible but so are all the charges and mess you are going to get in. There is a lot more paperwork around this like BIK and the like you have to deal with.

Guess what I am asking is if there is any chance of any authority coming to me before the 31st May 2013 and asking for Bank statements of the business to prove that I have always maintained enough bank balance to pay back the tax on any given day ??

Hell yes and the trouble you will be in won't be worth it. Even more so WHEN you can't pay it back.

Thanks again

You are not going to listen until you get the answer you want are you? We get plenty of this so go ahead fill your boots.. There I said it.

[prozak]

read this:

it's pretty easy to understand.

Directors' loan accounts and Corporation Tax explained | Business Link

here is more info:
http://www.hmrc.gov.uk/ct/managing/director-loan.htm

make an informed decision.


I can't find any links about BIK implications.

found it...

http://www.hmrc.gov.uk/paye/exb/a-z/l/loans.htm