Spending HMRC's money

[Bunk]

Cheers for that.

I don't think I have to pay till late 2012 - so it's not late yet, I was thinking spend it while benched but out of warchest and put it back when back in contract - No?

This is all worst case scenario contingency planning of course

If that all goes to plan then you'd probably be ok, but it's a bit like a gambler risking more money to get himself out of debt - it's entirely possible you just end up in an even bigger hole.

[Chaffinch]

If that all goes to plan then you'd probably be ok, but it's a bit like a gambler risking more money to get himself out of debt - it's entirely possible you just end up in an even bigger hole.

I guess I've just backed myself to find another contract when out of this one.

I have a small warchest - enough for 4 months, its only just struck me - what happens if I'm benched longer?

[eek]

I guess I've just backed myself to find another contract when out of this one.

I have a small warchest - enough for 4 months, its only just struck me - what happens if I'm benched longer?

After two months you try for the tulip contracts you spend the first two months turning your nose up at.

You are probably panicking for the sake of panicking. Unless your skills are niche something will turn it (it always does).

[Chaffinch]

After two months you try for the tulip contracts you spend the first two months turning your nose up at.

You are probably panicking for the sake of panicking. Unless your skills are niche something will turn it (it always does).

Yeah you may have a point.

I don't really do panicking, I do contingency planning. I think panic would lead to desperation and as someone who has sat in the hiring chair in the past - you can smell it a mile off !

Cheers for the replies on this thread, appreciated !

[Bunk]

I guess I've just backed myself to find another contract when out of this one.

I have a small warchest - enough for 4 months, its only just struck me - what happens if I'm benched longer?

That's up to you, you can spend the tax money and risk HMRC's wrath or call the bank and tell them you can't make the mortgage payment this month. Not a choice I ever want to make.

[MarillionFan]

Cheers for that.

I don't think I have to pay till late 2012 - so it's not late yet, I was thinking spend it while benched but out of warchest and put it back when back in contract - No?

This is all worst case scenario contingency planning of course

Don't see why not. I've taken a chunk of mine out as a directors loan and stuck it in an interest account. I'll put it back in November when it's due.

[MaryPoppins]

PS As for illegaility, not sure anything much is done. I was searching in connection with a bastard "friend" of my son who emptied the company account, including the several k my son had lent him. Bugger all seems to have happened to him, he just changed the business name a bit and started up again.

Yup. My ex partner (in both senses) did the same - i.e. took all funds set aside for VAT/Corp Tax and it came to nothing for him.

[d000hg]

if you spend it by paying yourself a salary then there is no problem as the salary payments reduce your Ltd.'s profit and that reduces the corp tax liability

If you have the CT money set aside from the previous year, and pay salary this year, does that still work? I'd guess not.


I don't think HMRC requires your company to have the CT money in the accounts, they just require you to pay on time... so if you spend the money you set aside for CT and rely on a new contract later in the year, that should be OK - as long as you GET the contract!

[Arturo Bassick]

Is it not possible to pre-pay the CT? Thus reducing the temptation.

[Chaffinch]

If you have the CT money set aside from the previous year, and pay salary this year, does that still work? I'd guess not.


I don't think HMRC requires your company to have the CT money in the accounts, they just require you to pay on time... so if you spend the money you set aside for CT and rely on a new contract later in the year, that should be OK - as long as you GET the contract!

That's my worst case scenario plan. I hope its one I never have to execute but it's good to know where you stand before you set off

Got a call in with my accountant too, to see what advice he has