Doing a tax runner

Do the runner - let us know how it goes

A mate has the IR sniffing around his ltd company re IR35 - so he shut the company down and went permanent. The friendly taxman advised that he pay up any unpaid PAYE/NI contributions, and think about paying corp tax later. He said it was their polite way of saying you're too small, we can't be bothered chasing a few £k of corporation tax, so don't worry about.

Possibly an isolated case but hey, gotta be in to win. Shoot into the Outback, buy a ranch, and drink your homemade beer.

Re: runner

The whole point of having a company is that your liability is limited to your share capital.

It limits your liability as a shareholder. You are also liable as a director, and limited liability does not offer you personally any protection.

I'm sure it is possible for a company to go broke without paying tax bills, but I think you would need to prove that there was no fraud or negligence by you as a director, if you don't want the tax man coming after you personally.

(As director you can have personal liability for harm your company may cause. For example, the former directors of Equitable Life are being sued by customers. This is why directors indemnity insurance exists.)

Re: runner

There was a thread somewhere recently started by a contractor who abandoned his company leaving his final tax bills unpaid. The Inland Revenue / Customs & Excise (can't remember which) handed his company over to a liquidator, he now faces a bill (including liquidators fees) of something like £30,000 - £40,000. I think the original tax bill he didn't pay was a couple of thousand pounds.

Re: runner

Go on runner, pocket the money the bastards want to steal from you and leg it. You have my full approval.

runner

Thanks for the comments. I will never return to the uk (visa wont allow me even if I wanted to) so bad credit ratings or being banned from being a director again etc are of no concern. I will probably end up paying but was more just curious how many people have done this and got away with it.

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Runners eh...where are the Sandmen when you need them! :rollin

Mailman

Re:You can run but you can't hide

And you wonder why the IR bought in things like IR35.

While you're at it Runner, burgle a few houses before you leg it back to Oz. The chances of being caught by the cops are almost zero ...

Seriously though, pay up. You may hate GB but you may have to come back to the UK one day ...

Re:You can run but you can't hide

The whole point of having a company is that your liability is limited to your share capital.

Having said that if the £6k was appropriated by you and that's why you can't/won't pay then the Revenue will pursue you personally wherever you are for it.

Companies House may also ban you from being a UK Director again and your UK credit rating will be affected.

What are the implications/risks of a contractor returning to Australia owing Hector corporation tax of 6K? Surely the chances of being tracked down are slim and even if forced to pay would only mean paying what was owed anyway plus a few late penalities etc. This must go on all the time- risk worth it?