In an absolute mess with Corporation Tax

[fiisch]

I worked as a contractor between January and June 2017, and have left the company in non-trading status ever since. I have a £6000 corporation tax bill next month and had left more than enough to cover this in the company accounts.

However, my wallet was stolen and my cards used fraudulently. All my personal banks quickly moved to stop the transactions, and the one transaction that did get processed was paid back to me almost immediately.

However, my business banking provider - let's call them GashMinus - sanctioned £6000 of transactions across 13 quick-fire transactions, and then refused to indemnify me. I raised a complaint, emailed the CEO, and this is now with the Financial Ombudsman although despite chasing I have been advised I may not receive a decision this calendar year.

HMRC are not able to defer the bill, and will only offer a 12 month payment term plus 3% interest, which I can ill-afford at the moment.

I cannot do anything further with business bank as they will not discuss the matter while it is with the Ombudsman. I have raised the issue with the nationwide, call-centre style accountancy firm that I have used, and based on their recommendation have complained stating the bank had insufficient fraud protection.

I'm assuming two options - wind up the company with outstanding liabilities (bad), or try and obtain a loan to settle corporation tax bill (very bad). Anyone been in any situation as remotely crazy as this? Is there a third option?

I am absolutely at my wit's end - on the verge of opening up the floodgates on review sites and approaching media outlets as it seems crazy that my company may go under based on my wallet being stolen and cards used fraudulently....

[northernladuk]

I worked as a contractor between January and June 2017, and have left the company in non-trading status ever since. I have a £6000 corporation tax bill next month and had left more than enough to cover this in the company accounts.

However, my wallet was stolen and my cards used fraudulently. All my personal banks quickly moved to stop the transactions, and the one transaction that did get processed was paid back to me almost immediately.

However, my business banking provider - let's call them GashMinus - sanctioned £6000 of transactions across 13 quick-fire transactions, and then refused to indemnify me. I raised a complaint, emailed the CEO, and this is now with the Financial Ombudsman although despite chasing I have been advised I may not receive a decision this calendar year.

Horrible situation so sorry to hear. Why did the bank refuse to indemnify you and why did it go to an Ombudsman? Are they claiming you were negligent in some way? Why you are carrying a company card around a year after you finished working through it and leaving CT payments so late are questionable but nothing wrong with it so they can't blame you for that can they?

HMRC are not able to defer the bill, and will only offer a 12 month payment term plus 3% interest, which I can ill-afford at the moment.

Sadly HMRC through and through that. Have you tried talking to the HMRC Debt Management and Banking Department (DMB)?

https://www.companydebt.com/hmrc-tax...ment-can-help/

I cannot do anything further with business bank as they will not discuss the matter while it is with the Ombudsman. I have raised the issue with the nationwide, call-centre style accountancy firm that I have used, and based on their recommendation have complained stating the bank had insufficient fraud protection.

Not sure how that will help. I don't think there is anything they can be held liable for in a recommendation can they? It would depend on the reason they won't indemnify you as well I would have thought?

I'm assuming two options - wind up the company with outstanding liabilities (bad), or try and obtain a loan to settle corporation tax bill (very bad). Anyone been in any situation as remotely crazy as this? Is there a third option?

I am absolutely at my wit's end - on the verge of opening up the floodgates on review sites and approaching media outlets as it seems crazy that my company may go under based on my wallet being stolen and cards used fraudulently....

I can understand your frustration but I don't think the last paragraph is a good idea, particularly while you are trying to sort it out. You'd have to make sure you've got the facts absolutely right and also they bank doesn't find out. I don't think they are going to be overly helpful in sorting this out if you've slandered them all over the web. And as I say, if you do, you better make sure the facts are absolutely spot on and you have good reason to do this.

Get your options on the table from various sources and get an action plan before hitting social media IMO.

[NotAllThere]

You could also try to raise with your MP and write to the various money sections of the newspapers.

[oliverson]

I worked as a contractor between January and June 2017, and have left the company in non-trading status ever since. I have a £6000 corporation tax bill next month and had left more than enough to cover this in the company accounts.

However, my wallet was stolen and my cards used fraudulently. All my personal banks quickly moved to stop the transactions, and the one transaction that did get processed was paid back to me almost immediately.

However, my business banking provider - let's call them GashMinus - sanctioned £6000 of transactions across 13 quick-fire transactions, and then refused to indemnify me. I raised a complaint, emailed the CEO, and this is now with the Financial Ombudsman although despite chasing I have been advised I may not receive a decision this calendar year.

HMRC are not able to defer the bill, and will only offer a 12 month payment term plus 3% interest, which I can ill-afford at the moment.

I cannot do anything further with business bank as they will not discuss the matter while it is with the Ombudsman. I have raised the issue with the nationwide, call-centre style accountancy firm that I have used, and based on their recommendation have complained stating the bank had insufficient fraud protection.

I'm assuming two options - wind up the company with outstanding liabilities (bad), or try and obtain a loan to settle corporation tax bill (very bad). Anyone been in any situation as remotely crazy as this? Is there a third option?

I am absolutely at my wit's end - on the verge of opening up the floodgates on review sites and approaching media outlets as it seems crazy that my company may go under based on my wallet being stolen and cards used fraudulently....

Ultimately what the hell can they do? Your company doesn't have the money (yet) so they'll just have to wait for it won't they? Can't get blood out of a stone. Sure, they may threaten you with winding the company up or sending an inspector round. Big deal. Sounds like you don't need the company anyway. It'll all come out right in the end. I've had similar situations in the past and you'd be surprised how long you can spin these things out. Certainly long enough to resolve your banking issues I would imagine.

[WordIsBond]

Yeah, if you don't actually need the company any longer, tell HMRC to go ahead and wind it up. IF you can prove the credit card charges were fraudulent they can hardly pierce the corporate veil. So if they aren't willing to wait until you get it sorted with the bank, tell them to pursue it however they may.

Of course, if you were actually buying stuff with the card yourself and now claiming it was stolen, they are likely to find out and then you end up in more trouble than you ever imagined. So if you did that, settle up and pay up as soon as you can. I only say this because seems pretty clear your bank thinks that's what happened or they'd have been more help.

[fiisch]

The transactions are very clearly fraudulent - overseas, high-value and quick succession, and the same pattern is evidenced on other cards but as more established banks the transactions were not authorised. Has been reported to the local police (it happened while working overseas in Poland) and they have CCTV image from Cashpoint of the cards being used.

The bank in question is denying indemnity on the grounds the transactions were PIN verified. This is true across all cards, and having done some Googling, it seems that typically the FOS do not consider this a valid grounds for denying indemnity (although the FOS do not work on the basis of legal precedent, so there is always that risk....)

I don't like things being left in limbo, and I am flirting with the idea of returning to contracting, but it sounds like a winding up order might end up being my best option, although rather perversely, if the company gets wound up and then the FOS finds in my favour, that'll leave me £6k better off, surely?!?!

It is so frustrating as the accountants and HMRC were both notified as soon as this happened some three and a half months ago, and I was assured a manageable repayment plan could be instigated should my complaint still be ongoing, yet now it seems I have 2 options: cough up in 12 months or face a winding up order.

Right now I want to make as much noise as possible - I'm disappointed by my accountants for recommending a bank with inadequate fraud protection, and I am furious with my banking provider for 1). Allowing the transactions in the first place and 2). Not investigating thoroughly (I had numerous issues reporting the fraud, getting a response from them, escalating a complaint etc....).

[northernladuk]

How did they get the pin numbers of all yourb cards?

[fiisch]

How did they get the pin numbers of all yourb cards?

If I knew that, I’d be a very wealthy man!!

Most of the cards were not used while in Poland, and all have different PINs with no obvious pattern....!

[oilboil]

... but as more established banks the transactions were not authorised.

The bank in question is denying indemnity

You've already told us it was Nationwide so why hide the fact?

As for more established banks, the nationwide is one of the largest financial institutions in the UK and has been trading over 134 years . In 2016, the bank reported total assets of US$276 billion and posted a net income of US$1.3 billion.

This makes them the 5th/6th largest financial institution in the UK - not sure why you would say they are not established

[1manshow]

You've already told us it was Nationwide so why hide the fact?

As for more established banks, the nationwide is one of the largest financial institutions in the UK and has been trading over 134 years . In 2016, the bank reported total assets of US$276 billion and posted a net income of US$1.3 billion.

This makes them the 5th/6th largest financial institution in the UK - not sure why you would say they are not established

He was referring to an accountancy firm as being "nationwide", not a bank...