Reply to: Ltd Co bank balance and divorce FDR

[TheCyclingProgrammer]

If they refund by cheque, at least it reduces the account balance for a while until you pay the cheque back in

Thats a good point. OP should make sure HMRCs address records are up to date before they start sending cheques out. Trust me, I should know...

[TheFaQQer]

You might want to double-check with the VAT department if they are happy for you to pay early.

I've accidentally double-paid a VAT bill before and despite being told on the phone that I could leave the overpayment "on account" and reduce my next payment, HMRC subsequently issued a refund cheque for the overpayment (this ended up causing me all sorts of hassle for various reasons, but that's another story).

Paying CT early definitely not an issue though and they should pay you some measly interest too.

If they refund by cheque, at least it reduces the account balance for a while until you pay the cheque back in

[speling bee]

Thanks for the advice. I am going to pay early both corporation tax and VAT so as to keep the bank balance at a more reasonable level. Also her lawyers today wrote me an offer that was calculated without recourse to ltd co funds so maybe I have won this battle :-)
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Hope you're sorted soon and can start moving on.

[MPwannadecentincome]

You might want to double-check with the VAT department if they are happy for you to pay early.

I've accidentally double-paid a VAT bill before and despite being told on the phone that I could leave the overpayment "on account" and reduce my next payment, HMRC subsequently issued a refund cheque for the overpayment (this ended up causing me all sorts of hassle for various reasons, but that's another story).

Paying CT early definitely not an issue though and they should pay you some measly interest too.

Good advice, in fact my accountant told me this today as well, they are going to inform HMRC not to issue any refunds.

[TheCyclingProgrammer]

Thanks for the advice. I am going to pay early both corporation tax and VAT so as to keep the bank balance at a more reasonable level. Also her lawyers today wrote me an offer that was calculated without recourse to ltd co funds so maybe I have won this battle :-)
Sent from my RM-941_eu_euro1_262 using Tapatalk

You might want to double-check with the VAT department if they are happy for you to pay early.

I've accidentally double-paid a VAT bill before and despite being told on the phone that I could leave the overpayment "on account" and reduce my next payment, HMRC subsequently issued a refund cheque for the overpayment (this ended up causing me all sorts of hassle for various reasons, but that's another story).

Paying CT early definitely not an issue though and they should pay you some measly interest too.

[MPwannadecentincome]

Thanks for the advice. I am going to pay early both corporation tax and VAT so as to keep the bank balance at a more reasonable level. Also her lawyers today wrote me an offer that was calculated without recourse to ltd co funds so maybe I have won this battle :-)
Sent from my RM-941_eu_euro1_262 using Tapatalk

[Taita]

+1. The ex only sees a "bank" account with lots of money in it that only you have access to.

qh

While she is doing this her legal beagles are wiping their hands with glee! They are not going to rush to tell her the error of her ways: rather, they are going bill against the joint home equity until the cows come home. 'Legal beagles' like to say they advise but they are much more comfortable carrying out ' client instructions' even when the instructions have no merit! Instruct your 'beagles' to stop this farce now!

[quackhandle]

That will remove the large figure her greedy eyes are looking at and hopefully defuse the situation a bit..

+1. The ex only sees a "bank" account with lots of money in it that only you have access to.

qh

[eek]

I think the only advice would be to pay the corporation tax on account as that will reduce the balance and while she may wish to argue the point I can't see any judge agreeing with her.

That will remove the large figure her greedy eyes are looking at and hopefully defuse the situation a bit..

[CoolCat]

Courts in this country are a joke, I have been involved in many types of cases and in every single case the side which could afford the more expensive legal team won. So I have no faith in any kind of justice.

As for divorce your ex is being badly advised, but that is to be expected from lawyers who see her as a revenue stream. The couple will always be better off coming to a settlement themselves and reducing the legal bill as much as possible.

As for the Ltd company issues, if it helps you could always start working through an umbrella, wind the company up paying all the taxes due. Make sure the judge understands your employer is only an umbrella and its a zero hours contract with no guarantees over income from week to week. This removes any possibility that the ex can target money kept to pay tax bills.

If there are kids involved fathers for justice website is worth a read

[tractor]

..

oh she knows, she just thinks she can ask the court to make me pay her costs.

she just doesn't want to understand - she is on a different planet.

You should know that courts take a dim view of friviolous actions. Often this is why a company will make a (very) low offer out of court wrt settlements. Then if you take a hard headed approach that is unreasonable in the court's view, they will adjust any settlement accordingly and may even make you pay a share or all of the costs becuase you were frivolous or reckless.

[TheFaQQer]

Sorry not an answer to the question posed, but could you not just pay the balance to HMRC on account? CT you can (over-)pay on account without yet having filed a return, VAT too I think although it would be advised to cancel the DD to avoid it being taken twice.

+2 - I was about to write pretty much the same thing.

You could also ask your accountants to prepare some kind of monthly management accounts, which shows the state of the company. I don't know how often you send the spreadsheet to SJD, but with InTouch, once I complete a month and the figures have been reviewed, I get a management account summary which shows the assets and liabilities clearly.

[MPwannadecentincome]

To which the only solution is to get someone to ask her where she will live when the lawyer has finished spending the house...

Its probably because she isn't writing immediate cheques that she hasn't realised exactly how expensive this is...

oh she knows, she just thinks she can ask the court to make me pay her costs.

she just doesn't want to understand - she is on a different planet.

[eek]

Yeah that's the tricky bit... she is not paying for it, she has a loan against the house equity for the legal fees and is burning through it at twice the rate I am.

so for every £10,000 of legal fees she burns that is ten grand less in the pot to be divided up.

So to get the court to order it is going to mean 40 grand less overall in the pot, just to prove that my Ltd Co bank balance is not mine? It'd be cheaper for me to just let it be counted in.

rock <-> hard place

To which the only solution is to get someone to ask her where she will live when the lawyer has finished spending the house...

Its probably because she isn't writing immediate cheques that she hasn't realised exactly how expensive this is...

[MPwannadecentincome]

If she wants a level of proof over and above what you have provided, let her pay for it. Unless the court orders it, I would say to her go forth and whistle.

Yeah that's the tricky bit... she is not paying for it, she has a loan against the house equity for the legal fees and is burning through it at twice the rate I am.

so for every £10,000 of legal fees she burns that is ten grand less in the pot to be divided up.

So to get the court to order it is going to mean 40 grand less overall in the pot, just to prove that my Ltd Co bank balance is not mine? It'd be cheaper for me to just let it be counted in.

rock <-> hard place