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

[ASB]

What do the experts make of this:

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

Of course the co can write it off. Triggers a tax charge.

[speling bee]

Of course the co can write it off. Triggers a tax charge.

To the Director? If so, the OP can easily pay it off with the expected profits from the shares.

[jbryce]

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.

yup as a company director you need to call in the loan. Companies fail all the time and with liabilities to HMRC and the VAT man and that is accepted. However if you don't call the loan in then the liquidator's report will cite the company director as being negligent and you will be banned. Not good.
Sell the car.
Pay it off.

[ASB]

EIM21741 - Particular benefits: loans written off: special rules

To the Director? If so, the OP can easily pay it off with the expected profits from the shares.

I guess there is also some form of interaction with the ct paid 9 months after year end.

[deeniguy]

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.

For now, my intention is to pay it off within the next few months and i am fairly optimistic about my stock returns and getting a job by October.

If HMRC will simply send reminder letters and default notices as per penalty guidelines, then i'd rather keep quite and focus on finding means to repay them or should i contact them and let them know my situation?

What do you suggest?

[TheFaQQer]

For now, my intention is to pay it off within the next few months and i am fairly optimistic about my stock returns and getting a job by October.

If HMRC will simply send reminder letters and default notices as per penalty guidelines, then i'd rather keep quite and focus on finding means to repay them or should i contact them and let them know my situation?

What do you suggest?

What does the reminder letter say to do? The website says that if you cannot pay, they recommend calling them and discussing the problem, rather than ignoring them.

You need to hope that the stocks return to a level that means you can repay them the VAT money and the interest that is accruing on it, or you get a role that pays significantly more than your last one and is outside IR35 so that you can take the money out of the company without incurring a tax and NI liability.

Have you paid the NI yet, or is that still to come?

[LisaContractorUmbrella]

For now, my intention is to pay it off within the next few months and i am fairly optimistic about my stock returns and getting a job by October.

If HMRC will simply send reminder letters and default notices as per penalty guidelines, then i'd rather keep quite and focus on finding means to repay them or should i contact them and let them know my situation?

What do you suggest?

Definitely contact them

[TheCyclingProgrammer]

You shouldn't even be considering ignoring them. The best chance you've got of any leniency is contacting them and explaining your situation and coming to an arrangement to make payment as soon as possible.

Have you even looked into the possibility of taking out a personal loan to cover this? It obviously depends on your credit situation so it might not be possible but personal loans aren't that expensive right now...I'd rather be in debt to my bank than the VAT man, personally.

[cojak]

For now, my intention is to pay it off within the next few months and i am fairly optimistic about my stock returns and getting a job by October.

If HMRC will simply send reminder letters and default notices as per penalty guidelines, then i'd rather keep quite and focus on finding means to repay them or should i contact them and let them know my situation?

What do you suggest?

So you're relying on the VAT man being as incompetent as you?

Good luck with that strategy...

[TheFaQQer]

If you are planning on ignoring them, at least make sure you file an accurate VAT return. The penalties for not doing this are significantly worse than just not paying, eg. a deliberate and concealed error that you only disclose when HMRC prompt you for the facts gives rise to a penalty of between 50 and 100% of the amount due.