Reply to: No contract, no income = spend corporation tax money?

[d000hg]

There are many other things you could do first before doing that, such as selling the house, the car, and other assets, doing less-well paid work, drawing down on your pension perhaps, borrowing from friends, family, loans from banks, spending on credit cards, selling on Ebay, sending the wife out to work, kids to get a paper round. All these things are legal. Purposefully spending Corporation tax money on yourself is not, and could even land you in jail.

I don't think it will come to that though. 5 month's warchest should get you through it in my opinion.

Who is going to want to buy a car or a new house right now? Buying your tat is violating no-essential-travel guidelines (probably laws soon) and people are very cautious.

Finding work is going to be hard when everyone is struggling not to lay off workers.

- Emergency loans from the government might be the best bet if you qualify.
- Maxing out your credit cards and taking other loans. Cancel CC repayments or set to pay the minimum.
- Make sure you take any allowed mortgage holiday. If needed, stop paying the mortgage regardless
- Stop spending on luxuries, make sure you cancel gym memberships and so on you cannot use
- Consider stop paying council tax and utility bills

Ultimately though there is no such thing as "corporation tax money" there is just money in your company, and CT bills. I would not be surprised if CT bills were deferred or that late payments were not penalised.

If it comes down, really comes down to buying food with company money or not buying food... you'd be an idiot not to. The consequences can be dealt with later, but looking after your family is the top priority.

[quackhandle]

Chortle!

They're soft as tulipe regarding corporation tax - You can run up a debt of £20,000 before they even notice, and then they'll just fire off computer-generated letters for months, and only then pass it on to a debt management company, with which you can agree a nice small weekly sum to pay it off over several months.

When I lived oop North there was an owner of a local amateur football who did this. He opened up around half dozen companies and racked up dept on each of them, but he knew there was limit (250k?) before HMRC would become interested.

He ended up going to prison, but for drug dealing and not ripping off every man and his dog with shady deals.

qh

[LondonManc]

Speak to them, explain your situation. They may be able to give better advice or at least put a note on your file. Acting without their consent will end far worse than if you approach them before you act.

[escapeUK]

Spend the lot, there's only two ways out if this

1. debt jubilee for all
2. Increase taxes massively

Once Covid ends there's no way the Tories will be able to wind back all this free cash for people sitting on their arse.

Agreed spend it. And it will be number 1. Maybe even with a new cashless global currency.

2: Corp Tax less so - but don't expect to be able to run a Ltd company again until at least 2 years after

Given HMRC's plan to make running a ltd company utterly pointless, that wouldn't be a factor in my consideration.

[BrilloPad]

Hierarchy is:

1: Always pay VAT without exception - even if you have to sell your kids
2: Corp Tax less so - but don't expect to be able to run a Ltd company again until at least 2 years after

HTH

Since Customs and Excise merged with inland revenue that is out of date.

[OwlHoot]

There are many other things you could do first before doing that, such as selling the house, ... Purposefully spending Corporation tax money on yourself is not, and could even land you in jail. ...

Chortle!

They're soft as tulipe regarding corporation tax - You can run up a debt of £20,000 before they even notice, and then they'll just fire off computer-generated letters for months, and only then pass it on to a debt management company, with which you can agree a nice small weekly sum to pay it off over several months.

So ignore, all that doom-laden advice, and tuck into the corporation tax.

VAT is somewhat different, and they will jump on you fairly promptly for spending that!

Sell your house indeed!

[Benny]

Hierarchy is:

1: Always pay VAT without exception - even if you have to sell your kids
2: Corp Tax less so - but don't expect to be able to run a Ltd company again until at least 2 years after

HTH

[TwoWolves]

No entirely true.

In 2005 I had a bit of a bump and was struggling to pay my tax. Wrote a letter, made a call and offered a payment structure over the next six months to pay it off and they were pretty decent about it. After every cheque I sent in I phoned them up to confirm they got it and that they were happy with the progress and they were fine.

Be proactive, polite and professional with them. Do what you say you will do.

Six months from now HMRC is going to be up to their eyeballs in broke people; new rules.

[vwdan]

Robbing the mafia is less risky...

Yep, you can make a deal with the mob.

[quackhandle]

Having read those responses you've convinced me that doing such a thing would be like robbing the mafia.

qh

[BrilloPad]

Spend the lot, there's only two ways out if this

1. debt jubilee for all
2. Increase taxes massively

Once Covid ends there's no way the Tories will be able to wind back all this free cash for people sitting on their arse.

The normal rules do not apply to HMRC....

[bingobob777]

Spend the lot, there's only two ways out if this

1. debt jubilee for all
2. Increase taxes massively

Once Covid ends there's no way the Tories will be able to wind back all this free cash for people sitting on their arse.

[ladymuck]

Robbing the mafia is less risky...

We're more likely to need the horses for meat, shortly

[eek]

Having read those responses you've convinced me that doing such a thing would be like robbing the mafia.

Robbing the mafia is less risky...

[juckky]

Having read those responses you've convinced me that doing such a thing would be like robbing the mafia.