Cannot pay VAT/PAYE due to Director's Loan - Need Advice !

[TheFaQQer]

Just read this about PAYE penalties as well: "You will not be charged a penalty if only one PAYE amount is late in a tax year - unless that payment is over 6 months late."

So really i have until October 2014 to get this mess cleared up since PAYE/VAT was due in April.

Are you paying PAYE monthly or quarterly? If you miss multiple periods, then they aren't going to let you off, and the same goes for your VAT return.

You've missed the VAT return for the end of April, so there's your first breach. Unless you can find the money to pay that back before the next VAT return is going to be due at the end of July, then you're going to miss two periods in the same twelve months, which sets you some way down the track towards penalties.

Have you actually done the VAT return paperwork and just not paid it, or have you ignored the whole thing?

[speling bee]

Have you actually done the VAT return paperwork and just not paid it, or have you ignored the whole thing?

That is a very pertinent question. A very pertinent question indeed.

[TheFaQQer]

Don't forget to add in the 3% interest charge for late payment as well when you calculate how much return your shares need to make before you can sell them.

[deeniguy]

Are you paying PAYE monthly or quarterly? If you miss multiple periods, then they aren't going to let you off, and the same goes for your VAT return.

You've missed the VAT return for the end of April, so there's your first breach. Unless you can find the money to pay that back before the next VAT return is going to be due at the end of July, then you're going to miss two periods in the same twelve months, which sets you some way down the track towards penalties.

Have you actually done the VAT return paperwork and just not paid it, or have you ignored the whole thing?

Never missed any PAYE/VAT before, since incorporation in Aug 13, i've paid both Oct & Jan. The only outstanding one is VAT/PAYE for April. Since my contract ended in Feb, i haven't had any further income since, so i don't expect the VAT/PAYE outstanding balance to change in the coming months.

[speling bee]

Never missed any PAYE/VAT before, since incorporation in Aug 13, i've paid both Oct & Jan. The only outstanding one is VAT/PAYE for April. Since my contract ended in Feb, i haven't had any further income since, so i don't expect the VAT/PAYE outstanding balance to change in the coming months.

Have you submitted your VAT return and not paid it, or failed to submit the return?

[deeniguy]

Have you submitted your VAT return and not paid it, or failed to submit the return?

My accountant has submitted my VAT/PAYE i just haven't been able to make a payment. I've had reminder letters from HMRC.

[TheFaQQer]

I wonder how the system will react when the next VAT return gets filed at the end of next month and there hasn't been any payment for the previous quarter. I suspect that alarm bells somewhere will ring.

[speling bee]

I wonder how the system will react when the next VAT return gets filed at the end of next month and there hasn't been any payment for the previous quarter. I suspect that alarm bells somewhere will ring.

But if it's not a zero return (and I accept that a zero return may still ring alarm bells), there is money coming in to pay the bills.

[ASB]

Tricky as you won't be personally bankrupt.... However you could be banned as a company director...

Both are quite likely. If hmrc dont accept a repayment plan they can force admi istration. The admistrator will be forced to call the loan and issue bankruptcy proceedings.

[speling bee]

Both are quite likely. If hmrc dont accept a repayment plan they can force admi istration. The admistrator will be forced to call the loan and issue bankruptcy proceedings.

What do the experts make of this:

HM Revenue & Customs: Directors' loan accounts and Corporation Tax explained

A director's loan can be repaid by:
putting money into the company's bank account
the company crediting the director's loan account with a payment - for example a dividend, salary or bonus

A director's loan can also be considered repaid if the loan is:
released by the company in a formal contractual procedure
written off by the company where the company accepts that a loan (usually to a former director) cannot be recovered, and has given up trying to get it repaid