Reply to: Corporation Tax screw up. What next?

[SueEllen]

+1

The concept should be taught properly in schools. Debt seems to be okay. It should be the "never never".

That's what parents and adults in your family are for.

In addition teenagers nowadays are lucky they have the internet with sites like Moneysavingexpert.

[MrMarkyMark]

Isn't there a bigger problem here that if the OP has been paying dividends to himself using tax money they are illegal? What he owes is just going to spiral once he works it properly?

Technically true. Unsure whether this will just be ignored if he pays the money back though.

[SueEllen]

Isn't there a bigger problem here that if the OP has been paying dividends to himself using tax money they are illegal? What he owes is just going to spiral once he works it properly?

Yep.

But I think we have scared the OP enough...

[northernladuk]

Isn't there a bigger problem here that if the OP has been paying dividends to himself using tax money they are illegal? What he owes is just going to spiral once he works it properly?

[psychocandy]

+1

The concept should be taught properly in schools. Debt seems to be okay. It should be the "never never".

Personally I put aside 25% of all dividends paid for corporation tax. That has never let me down. Yet.....

With my accountant this could never happen. They give me a P&L every month telling me how much is available for dividend. So the CT and VAT is never touched EVER.

So come bill time no chance of ever not having the money there.

[psychocandy]

A few years ago it was explained to me how some intelligent people just cannot get the concept of money. They need their partners to deal with it. (There are some famous examples of it.)

If their partner is also spendthrift the individual isn't intelligent....

My dear wife is one such example. (although intelligent not so sure - she did marry me!).

No idea or interest whatsoever in money etc. Apart from spending it. I tried for years and have now given up. If she fancies buying something substantial she asks me - I say yes or no which is a bit weird but shes not bothered.

[psychocandy]

This. Bearing in mind we tend to be able to pocket about 60-70% of income where has all that money gone? I think you need to look at your lifestyle here. You owe the tax man a lot so time to reign in the spending for a year.

I was wondering that too. If the OP has just blown it then they need to take a look at themselves.

As others have said though - happens all too often. People out where see the money coming in and think "flipping heck this is good" and worry about it later. Seen it myself.

Only going to get worse with dividend tax. Now theres not just the CT to leave in the company - theres the dividend tax to find in January personally. I reckon by about 29th Jan 2018 (there sort always leave it until the last minute) we'll be getting the posts about "feck I owe £5K dividend tax I didnt know about what can I do?"

[BrilloPad]

A few years ago it was explained to me how some intelligent people just cannot get the concept of money. They need their partners to deal with it. (There are some famous examples of it.)

If their partner is also spendthrift the individual isn't intelligent....

+1

The concept should be taught properly in schools. Debt seems to be okay. It should be the "never never".

Personally I put aside 25% of all dividends paid for corporation tax. That has never let me down. Yet.....

[dx4100]

Speak to HMRC. Grovel. If you have an accountant get them to do some forecasts showing how much you can afford to pay. They may offer you another arrangement & I think it's worth trying that before getting a loan.

Every time someone says speak to the HMRC a fairy dies

[SarahL2012]

Speak to HMRC. Grovel. If you have an accountant get them to do some forecasts showing how much you can afford to pay. They may offer you another arrangement & I think it's worth trying that before getting a loan.

[SueEllen]

For a short period and then learn what to do properly. He can't be managed by an accountant for the rest of his contractor life.

A few years ago it was explained to me how some intelligent people just cannot get the concept of money. They need their partners to deal with it. (There are some famous examples of it.)

If their partner is also spendthrift the individual isn't intelligent....

[northernladuk]

Added to that get an accountant who tells you exactly what you can take out of your account and when.

For a short period and then learn what to do properly. He can't be managed by an accountant for the rest of his contractor life.

[SueEllen]

Firstly get an accountant and learn sharpish or go to an umbrella.

Added to that get an accountant who tells you exactly what you can take out of your account and when.

You have 2 options - increase your income and/or cut your monthly expenditure.

I'm guessing the second is the most viable but likely what you don't want to hear, hence why you're in this situation.

Agreed.

[BrilloPad]

You need to be honest with HMRC. An accountant can help.

You should be living on fresh air until HMRC are paid off.

Can you avoid bankruptcy?

[VillageContractor]

Firstly get an accountant and learn sharpish or go to an umbrella.

You have 2 options - increase your income and/or cut your monthly expenditure.

I'm guessing the second is the most viable but likely what you don't want to hear, hence why you're in this situation.