I've accidentally provided an agency with my own personal bank details before and they've paid it before I've swapped it over, but as already said in this case I'd be telling the OP to take a running jump.
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What happens in General, stays in General.You know what they say about assumptions! -
Fairly interesting responses, however, I do need to address some issues.
It turns out, that I have been naïve, and have been running my company insolvent for 5 years. I have been simply taking money out I don't own, then paying Corporation tax later in the year out of earnings; I have, effectively, been spending my money as I earned it, and paying tax, or planning to pay tax, on future earnings. I thought it was ok to do this, but in a casual conversation with another contractor, fouind out it wasn't. I then phoned the accountant, who told me to stop trading immediately. I phoend the agency, to explain the situation, and they were very good about it, exceptional. Said no problem, they'd get a new contract out to me backdated to the Monday previous. I then handed over responsibility of my bank a/c, company, etc, to the Insolvency Pracitioner the accountant suggested. He then, effectively, told me to walk away, not to touch anything, and we arranged a meeting. I told the agency the name of the new company, and advised them not to pay me, until I gav them new Bank A/C details. All fine and settled, until 2 weeks later I was paid to the old company. The agency admitted the error, but said tough, that if they'd not changed the company on time, that I'd not have got the money anyway (true), and that they believed the Insolvency Practitioner would keep the money erroneously paid anyway. Said I would have to take the hit, that no way would they.
I understand if this all sounds a bit iffy, but the long and the short of it is naivity on our part, and accoutnacy errors on my wifes part.
I have no idea what Phoenix is, but I am guessing it involves the burning of one company and its debts? The only entity we owe money to is HMRC and, to be frank, I am fair kaking myself about that anyway. I am not simply trying to blame everyone else, I am simply telling you what has happened, and am asking for advice. It seems to me, that I have to take a £3k loss on the chin.
Coupled with this, it appears the FD is now refusing to pay the VAT owed on my contract on the new company, which I terminated. It appears I have a rather large pooh sandwich looming that I may have to take a chunk out of…
Can someone explain what Phoenix is?Comment
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If you're not a troll, I'd go out and get an industrial size tub of KY.And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.Comment
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Phoenix company - Wikipedia, the free encyclopediaOriginally posted by Zoiderman View Post"You’re just a bad memory who doesn’t know when to go away" JRComment
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This doesn't make sense, what have you been "taking out" of the company? All of the billed income less whatever the previous year's corp tax was ?It turns out, that I have been naïve, and have been running my company insolvent for 5 years. I have been simply taking money out I don't own, then paying Corporation tax later in the year out of earnings; I have, effectively, been spending my money as I earned it, and paying tax, or planning to pay tax, on future earnings
What have you put on your 4 sets of end of year accounts and CT600 ?
Have you actually paid HMRC any money?
Have you completed a self-assessment tax return?
re. the payment, i suspect you could probably take them to court for some sort of breach of contract, but that will be the end of your contract. Also, you might have bigger things to worry about.Comment
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You got it wrong, and are now trying to get out of "paying your dues". You are essentially trying to avoid tax.
As posted previously, I'd be considering the purchase of an ALMIGHTY tub of KY Jelly, and assuming the position.
There are only two things certain in life - Death and Taxes (actually I can think of a few more - including England being rubbish in world cup football, and the wife not putting out after marriage - but that's beside the point)."Being a permy is like being married, when there's no more sex on the cards....and she's got fat."
SlimRick
Can't argue with that
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The advice to dump your first company sounds very dubious to me as a layman. If you were paying the correct amount of tax, and basically just running ahead of yourself, that would sound pretty simple to fix.Originally posted by MaryPoppinsOriginally posted by vetranComment
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Ohhh
Emmm
Geeee
Deep tulip - could be a sockie/troll so no sympathy from me yet...Comment
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I am not even slightly joking, or trolling. We have been running the company like this for years, and years. We have always paid our Corp tax, and personal taxes, but we have always drawn money down that, I know now, we didn't actually have, as we had corp tax liabilities outstanding, but acted on the premise future earnings would cover it, which it had until we were advised that what we were doing was illegal. Once we were told this, we were told by the accountant to stop trading, immediately, which we did.
However, for the previous 8 years, we have always paid our taxes, it is just the past one which we haven't, and have folded the company. We were advised to do this, btw, we didn't decide to do this, this was legal/accountancy advice. I don't understand the hostility, to be honest. We have been contracting for 11 years and never had an issue. Obviously, thats because we didn't know what we were doing was wrong.
There will be no KY jelly needed, as we have a good war chest, substantial chest and we not once deliberately traded insolvent.
I came here for advice, and all it appears that you want to do, is mock and pour scorn. It's not attractive.Comment
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