Closed Company with a loss

[Bheleu]

I recently closed a company, it owed to HMRC, I settled that account my paying it of myself.

Q. Can I do Donald Trump and claim it as a loss on my personal tax return ?

[fullyautomatix]

If the company owed HMRC some money and there was no cash in the company account, it points to fraudulent activity. So instead of worrying about Trumpism you need to watch your back, there could be someone out there with a warrant for your arrest.

[Paddy]

I recently closed a company, it owed to HMRC, I settled that account my paying it of myself.

Q. Can I do Donald Trump and claim it as a loss on my personal tax return ?

If the company owed HMRC some money and there was no cash in the company account, it points to fraudulent activity. So instead of worrying about Trumpism you need to watch your back, there could be someone out there with a warrant for your arrest.

If you owe HMRC a few thousand pounds, you have a problem. If you owe HMRC a few million pounds, HMRC has a problem.

[Old Greg]

I recently closed a company, it owed to HMRC, I settled that account my paying it of myself.

Q. Can I do Donald Trump and claim it as a loss on my personal tax return ?

Only if you do it in a very specific and limited way.

[eek]

If the company owed HMRC some money and there was no cash in the company account, it points to fraudulent activity. So instead of worrying about Trumpism you need to watch your back, there could be someone out there with a warrant for your arrest.

It's possible that a company could end up owing HMRC money and not have the ability to pay the bill - I've seen it happen with firms with a lot of employees. I can't imagine anyway that a one man consultancy business (PSC but I hate that name) could manage what would be required.

[DoctorStrangelove]

Considering the sort of nonsensical crap that turns up here from time to time, it doesn't surprise me at all.

[eek]

Considering the sort of nonsensical crap that turns up here from time to time, it doesn't surprise me at all.

Oh I believe people will screw up in ways that result in HMRC being owed money.

I just don't believe they will do so in anyway that doesn't give HMRC (or the company liquidator) due cause to chase them for the money personally.

And for the perfect example just look at Oliverson's posts regarding his company's debts...

[Hobosapien]

I just don't believe they will do so in anyway that doesn't give HMRC (or the company liquidator) due cause to chase them for the money personally.

My first contracting Ltd was closed and written off by Companies House while owing HMRC £5k IIRC for corp tax for the period it was profitable. All done using the proper process at the time and not a peep from HMRC.

Happened during a prolonged bench time where I was running down the Ltd balance via salary and 'seeking work' expenses that happened to be unfruitful officially *, resulting in a near zero balance before the next corp tax bill was due.

* Unofficially, I didn't do much contract seeking as I was having time away from contracting doing other things. So it's possible. I suppose there is a threshold below which HMRC don't bother chasing the debt. Maybe I was lucky and it's £5001. Or maybe they were clever enough to realise the trading loss on the final accounts cancelled out the previous tax due, so not worth following up.

[eek]

My first contracting Ltd was closed and written off by Companies House while owing HMRC £5k IIRC for corp tax for the period it was profitable. All done using the proper process at the time and not a peep from HMRC.

Happened during a prolonged bench time where I was running down the Ltd balance via salary and 'seeking work' expenses that happened to be unfruitful officially *, resulting in a near zero balance before the next corp tax bill was due.

* Unofficially, I didn't do much contract seeking as I was having time away from contracting doing other things. So it's possible. I suppose there is a threshold below which HMRC don't bother chasing the debt. Maybe I was lucky and it's £5001. Or maybe they were clever enough to realise the trading loss on the final accounts cancelled out the previous tax due, so not worth following up.

Salary is the magic word there.....