Corporation tax return help please

[floricita]

How can you pay your tax if you have no funds in the account? If you owe tax and there company has zero money you could have a real problem on your hands... only one that an accountant can sort out.

You came on for advice, at least 6 people have given you the same advice so take it. Get an accountant. You are neck deep in trouble...


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Why am I neck deep in trouble?

Yes that was one of my questions. Can I pay the tax bill from my own personal account? Or do I essentially have to "pay back the directors loan" first into the business account?

What if the business account has been closed?

Thanks

[TheCyclingProgrammer]

Seeing as you owe the company money, yes you can pay the corporation tax bill directly from your personal account and the overall result will be that you will reduce the money you owe YourCo. You don't need to physical move money around but you do need to show this correctly in your company accounts.

For example, if you owe YourCo £5000 and your corporation tax liability is £1000, then your accounts would probably look something like this:

Director's Loan Account DR 5000.00
Corporation Tax CR 1000.00

If you then pay the CT bill yourself, you would show this with a journal to your accounts like so:

Director's Loan Account CR 1000.00
Corporation Tax DR 1000.00

[TheFaQQer]

I still don't agree that it an accountant is neccessary, these are my first thoughts on the issue without any background reading. I'm sure I can do it.

So do some background reading and then do it.

The advice from CUK is that you should consult a professional to do the work for (or even with) you. However, you are convinced that you can do it.

Good luck - prove the doubters wrong.

[northernladuk]

Why am I neck deep in trouble?

Yes that was one of my questions. Can I pay the tax bill from my own personal account? Or do I essentially have to "pay back the directors loan" first into the business account?

What if the business account has been closed?

Thanks

I thought you knew what to do and could do it yourself?

[floricita]

I thought you knew what to do and could do it yourself?

Thanks.

No I have never said that if you read my posts.

I have no idea how to do it and that is why I am asking for some advice on here as a starting point.

I have merely said that I will learn how to do it and I will do it.

If you wish to help, then that is greatly appreciated, if you're getting irritated for whatever reason I suggest you have a cup of tea or a bath rather than post unwarranted negativity on here.

Cheers

[JRCT]

I think if I was determined enough to not engage with an accountant, then I would be on the phone asking HMRC what they want from me, not asking on here what everyone thinks HMRC want from me.

[floricita]

I think if I was determined enough to not engage with an accountant, then I would be on the phone asking HMRC what they want from me, not asking on here what everyone thinks HMRC want from me.

I have been in contact with them, they want corp tax from me.

[TheFaQQer]

I have been in contact with them, they want corp tax from me.

You don't have any personal tax to pay? How does that work?

[northernladuk]

Do you actually know how much an accountant will charge you to do your corp tax and sort the horrible mess you are in?

[TheCyclingProgrammer]

You don't have any personal tax to pay? How does that work?

Well to be fair, OP hasn't actually received any personal income from the company yet.