Reply to: That's it should I walk away?

[Lance]

That's it should I walk away?

What is business if you can't work to it's advantages, what do we do it for? If you had overheads what would you do? The law is changing and this is a last result.

The proposed change to the law is simply about who makes the determination. It won't affect most 'business' as most businesses aren't one man bands, or aren't disguised employees. You should only fear this change if you're the latter. And even then...... all that will happen is you have to pay tax like an emplyee (which is not exactly unfair is it really?).

Of course not, I'm a honest straight and narrow company director just like all of you, struggling with a company and what the government throws at us whilst being exploited on unfair pay rates occasionally and a downturn of work.
I had best give my last lb of flesh and pay everything off before I go.

If you're 'exploited' on 'unfair pay rates' then you're a disguised employee. NOT a business man....

time to wise up...... and if I were you, I'd be speaking to HMRC about how to pay the money back. Unless you like the taste of porridge.

[ladymuck]

Of course not, I'm a honest straight and narrow company director just like all of you, struggling with a company and what the government throws at us whilst being exploited on unfair pay rates occasionally and a downturn of work.
I had best give my last lb of flesh and pay everything off before I go.

Unfair pay rates???

[Mearcat]

So, are you planning to commit fraud or not?

Of course not, I'm a honest straight and narrow company director just like all of you, struggling with a company and what the government throws at us whilst being exploited on unfair pay rates occasionally and a downturn of work.
I had best give my last lb of flesh and pay everything off before I go.

[WTFH]

We will have to see what happens on the 6th then, but I'm sure there are many many others with the same view.
The cat is sent among the pigeons.

So, are you planning to commit fraud or not?

[Mearcat]

Not all work is IR35 caught. There's still a decent proportion where the engagement is on a true B2B basis. There is no need to take the approach you're thinking of if you're capable of legally operating a business without believing your company's money is yours.

We will have to see what happens on the 6th then, but I'm sure there are many many others with the same view.
The cat is sent among the pigeons.

[ladymuck]

Then maybe taking a full time job or paying PAYE if caught by IR35 is more up your street.

Not all work is IR35 caught. There's still a decent proportion where the engagement is on a true B2B basis. There is no need to take the approach you're thinking of if you're capable of legally operating a business without believing your company's money is yours.

[BR14]

Then maybe taking a full time job or paying PAYE if caught by IR35 is more up your street.

No

[Mearcat]

Sorry, everything i do is legal.
I'm not a greedy would be tax dodger.

Then maybe taking a full time job or paying PAYE if caught by IR35 is more up your street.

[BR14]

So you can do it then.

Sorry, everything i do is legal.
I'm not a greedy would be tax dodger.

[Mearcat]

FTFY

So you can do it then.

[Cirrus]

It's most odd his lawyer didn't get all this sorted out. Also why is he left with nothing? Normally you would only have to 'share' up to 50%.


This all sounds very suspicious to me.

[BR14]

This is a scenario situation and how best to shut down a company without paying lawful taxes, and getting away with it

FTFY

[Mearcat]

Work to its advantages, yes. Break the law and then run to bankruptcy, no, that's not business. I have overheads, I have employees. That doesn't give me the right to take money out of the company that is needed to pay my taxes.

No, this is not a result of the law changing, this is a result of you taking money out of the company illegally. The fact that the law changes next year and makes it harder for you to pay back what you took doesn't change the fact that you took it when you shouldn't have, either legally or morally.

If it is truly impossible for you to be a productive and contributing citizen without bankruptcy then you may have to do that. But stop blaming it on the change in the law, that's ridiculous.

How much debt are you talking about, how much of that is CT, and what was your daily rate as a contractor?

This is a scenario situation and how best to shut down a company most Tax efficiently.

[WordIsBond]

What is business if you can't work to it's advantages, what do we do it for? If you had overheads what would you do? The law is changing and this is a last result.

Work to its advantages, yes. Break the law and then run to bankruptcy, no, that's not business. I have overheads, I have employees. That doesn't give me the right to take money out of the company that is needed to pay my taxes.

No, this is not a result of the law changing, this is a result of you taking money out of the company illegally. The fact that the law changes next year and makes it harder for you to pay back what you took doesn't change the fact that you took it when you shouldn't have, either legally or morally.

If it is truly impossible for you to be a productive and contributing citizen without bankruptcy then you may have to do that. But stop blaming it on the change in the law, that's ridiculous.

How much debt are you talking about, how much of that is CT, and what was your daily rate as a contractor?

[Mearcat]

So, you took money out of your company that should have been left in it to pay the Corporation Tax. You've spent that money one way or another.

So, apparently, you issued illegal dividends to yourself. Is that right?

Your company is now insolvent. So HMRC will hold you personally liable for that CT, since you took the money that should have been held to pay it as dividends. It may be they will even try to recover some of it from your ex, if she has some of that money, on the grounds that you didn't really have the money and it shouldn't have gone to her. Bankruptcy for your company isn't going to solve this, you'll have to go bankrupt yourself as well.

You can't blame this on IR35. The new law hasn't even taken effect yet. You are the one who decided to take the money out of the company rather than use it to pay the CT. Neither IR35 nor your ex forced you to do that.

Since it is CT, you've been operating outside IR35. That means the tax level was not excessive. We all have to pay that tax, and when some don't it means more taxes or poorer services for everyone else.

One year's CT is not going to be that much as to be unpayable. If you had £100K profit, it's £19K. If you had that much profit you should be able to get a perm/brolly role that pays £60K or so. Tighten your belt, work, and pay the debt.

I'm very sorry to hear about the divorce and the loss of all assets but I don't think that justifies taking illegal dividends to defraud the Exchequer (and thus society as a whole), and then filing bankruptcy to avoid the consequences.

What is business if you can't work to it's advantages, what do we do it for? If you had overheads what would you do? The law is changing and this is a last result.