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Fight to save Ltd or not

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    #31
    Sounds like you've answered your own question.

    Bring on the good fight.

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      #32
      Originally posted by oliverson View Post
      Been in this position before in the financial crisis. Remember the bank manager saying my business wasn't viable. I turned it around and I'll do the same again this time. I'm now angry. I have only just started looking proper btw. Hopefully I'll get to post a boom message on this forum in the coming weeks and avert a disaster.
      I love your enthusiasm, your optimism I too think this way and you know what for the most part I would say it comes out okay in the end. Very best of luck.

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        #33
        Originally posted by GregRickshaw View Post
        I see you mean getting into problem with the mortgage lender rather than tax collectors. Are there ways of protecting your home if you have no mortgage but tax collectors?
        Not legally that I know of!

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          #34
          Originally posted by uk contractor View Post
          Good lucky buddy but London Finance is pretty much dead contracts wise for many months now & not showing any signs of life anytime soon!
          Also, to pile on to the bad scenario, I assume there's a fair number of contractors who are out of work and, who knows, maybe are in a similar situation to the OP so they will accept whatever rates that will keep their heads above the water.

          OP, if/when the market opens up, be prepared to take rates that you would have never considered. Minimise expenses, cut whatever is not essential, which you've probably done already. Plan ahead and figure out all the possible scenarios taking into consideration day rates.

          Good luck.

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            #35
            Dublin contract market is not too bad now. It's normally a pain and expensive to travel and rates tend not to be as good as London, but it's WFH now, and EUR is still strong against GBP.

            And you could always set up an Irish Ltd

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              #36
              Originally posted by oliverson View Post
              Who says the company is unviable? I could land a contract to start in a few weeks and this problem goes away; both the Corp Tax and VAT would be paid when due, the directors loan would remain as is and the bounce back loan repayments would commence April 2021. What I am trying to do here is not avoid paying what is due but planning for a worse case scenario.
              Look at the facts.

              You run a business that has net negative assets of -£24K. It has £30K assets - the directors loan owed by you to the company - and £54K in liabilities (Corporation Tax due end of year (£18k), VAT deferred (£6k), Bounce back loan (£30k))

              It has not generated any income for months. Accepted, the liabilities are not due immediately, so there is a chance you can get out of the situation.

              It is unclear (you chose not to answer) whether you are still withdrawing funds from the company.

              It would be interesting to know if the bounce back loan went directly into the directors loan, or whether you've taken any salary and dividends on the back of that loan, or in lieu of setting the funds aside for the HMRC liabilities. At the point where you took out that loan, the business was not revenue generating, and, by your own admission, it was not looking for new business.

              It doesn't paint a picture of a director being in good financial control of a company.

              One of your questions was whether HMRC could come after you for CT and VAT. How you have managed the company financials as a director has a direct bearing on the answer to that question.

              Good luck with the job hunt.
              Last edited by Paralytic; 27 August 2020, 14:19.

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                #37
                Pretty good point made above

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                  #38
                  Originally posted by Paralytic View Post
                  It would be interesting to know if the bounce back loan went directly into the directors loan, or whether you've taken any salary and dividends on the back of that loan. At the point where you took out that loan, the business was not revenue generating, and, by your own admission, you were not looking for new business.
                  I asked the same but it was never answered...

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                    #39
                    Originally posted by GregRickshaw View Post
                    I see you mean getting into problem with the mortgage lender rather than tax collectors. Are there ways of protecting your home if you have no mortgage but tax collectors?
                    Originally posted by uk contractor View Post
                    Not legally that I know of!
                    Move the assets into someone else's name.
                    I did a stroll around Windsor on 2 Oct for Alzheimer's Society. You can chuck me a few quid here if you like: https://www.justgiving.com/fundraising/lmallen-1

                    Comment


                      #40
                      You can make use of HMRC's time to pay arrangements for CT and VAT if necessary. I tend to think there should be no excuse for missing VAT because it's never been your money but, having had my own sticky times in the past, I know that when it comes to paying the mortgage/rent vs a bill that's three months away you're always going to dip into the VAT pot and borrow from Peter to pay Paul.

                      There's some guidance on TTP here:
                      Negotiating a HMRC Time to Pay Arrangement - Support for Directors
                      I did a stroll around Windsor on 2 Oct for Alzheimer's Society. You can chuck me a few quid here if you like: https://www.justgiving.com/fundraising/lmallen-1

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