Letting HMRC wind up company

[geoff from contracta IOM]

I was thinking 'decades' to mean two or three, Let's assume 'not need to work' means from that he means he could draw £25k a year, means he must have between £500k and £750k in the bank, I'm sure a decent broker could lose that and the broker live off the fees.

On the other hand, I could be completely wrong!

FTFY

[stek]

Depends on their standard of living I suppose! He could be sitting in a cold, damp bedsit above a kebab shop, which has been provided FOC by one of his mates.

I was thinking 'decades' to mean two or three, Let's assume 'not need to work' means from that he means he could draw £25k a year, means he must have between £500k and £750k in the bank, I'm sure a decent broker could invest that and the OP live off the results.

On the other hand, I could be completely wrong!

[Sockpuppet]

Not all my money is in my company account, just thought this was a way to avoid some tax.

In which case the company would pay the outstanding. If you withdrawn £100k from the company account a month before you close it down pleading poverty I'd expect a swift visit from HMRC who will take great delight in trying to ruin you financially.

You'll then probably get sent to the big house where someone names Leon will take great delight in ruining you in a different way.

[TestMangler]

a limitless fine and / or imprisonment for up to 7 years.

That would mean he wouldn't have to work for the best part of a decade.

[doodab]

Not all my money is in my company account, just thought this was a way to avoid some tax.

It's not all your money. You might want to put some of it back.

Wrongful Trading (Section 214 Insolvency Act 1986)

You continue to trade when you knew or ought to have known that your company was insolvent and had little chance of recovery.

If found guilty a director will be required by the court to contribute to the assets of the company as compensation to those creditors who have suffered due to the wrongful trading.

The level of contribution is generally assessed on the extent to which the company’s financial position deteriorated since it was known or should have been known that it was insolvent with no reasonable prospects of avoiding insolvent liquidation.

A successful prosecution may also lead to action under the Company Directors Disqualification Act 1986, seeking to prohibit you from acting as a company director for a period of between 1 and 15 years.

Defence against such an action would take the form of proving that every step was taken to avoid worsening the position of the creditors or indeed mitigating their loss.

Fraudulent Trading

You continue to trade with the intention of defrauding your creditors.

If found guilty penalties are the same as those incurred in wrongful trading. In addition however being found guilty of fraudulent trading may result in a limitless fine and / or imprisonment for up to 7 years.

[ChimpMaster]

Surely anyone with enough wonga to not need to work for decades needs never work at all?

Just saying like...

Depends on their standard of living I suppose! He could be sitting in a cold, damp bedsit above a kebab shop, which has been provided FOC by one of his mates.

[stek]

Surely anyone with enough wonga to not need to work for decades needs never work at all?

Just saying like...

[russell]

These decades just fly in, don't they ?

Not all my money is in my company account, just thought this was a way to avoid some tax.

[TestMangler]

Hi,

If I wanted to close my company and go permie I assume all outstanding corporation tax, VAT etc would be due? If one didn't have enough to pay the full amount I have heard if you let HMRC wind your company up all your tax debts are written off and you cannot be liable personally, is this true? How do you do this?

Well, no contractors are being renewed and I had milked thay cow for a long time. Will propbably go a tour around the USA for a month or two, then think about looking for a new contract. I can afford to not work for decades, but I get bored sitting in the house all day

Anyway shouldn't you get back to clicking buttons, or whatever is it is testers do?

HTH BIDI

These decades just fly in, don't they ?

[doodab]

The company will you mean, the limited in limited company means you are not personally help responsible.

It also means that the directors are bound to adhere to certain rules and failure to do so can result in disqualification as a director and criminal charges. Your suggestion would likely involve you breaking a number of those rules.

[stek]

The company will you mean, the limited in limited company means you are not personally help responsible.

Edit: Just read it, think this is a bad idea!

Unless you've given directors guarantees or the HMRC apply to lift the veil of incoporatation if they think you are attempting to pull a fast one.

[russell]

HM Revenue & Customs: How HMRC collects unpaid Corporation Tax

http://www.hmrc.gov.uk/factsheets/ef6.pdf

They might write the debt off but you will get into trouble.

The company will you mean, the limited in limited company means you are not personally help responsible.

Edit: Just read it, think this is a bad idea!

[doodab]

http://www.hmrc.gov.uk/ct/managing/p...ollect-tax.htm

http://www.hmrc.gov.uk/factsheets/ef6.pdf

They might write the debt off but you will get into trouble.

[russell]

Hi,

If I wanted to close my company and go permie I assume all outstanding corporation tax, VAT etc would be due? If one didn't have enough to pay the full amount I have heard if you let HMRC wind your company up all your tax debts are written off and you cannot be liable personally, is this true? How do you do this?