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| T O P I C R E V I E W |
| Tom.60 |
Posted - 05 January 2011 : 14:56:46
I am sole director in a company that hasn't traded in more than a year and I want to wind-up. All of the company's remaining assets were used to pay a civil court action of a former director before corporation tax was paid. HMRC are owed £19,500 approximately. I entered into an agreement with them to pay if off in small amounts as I set up my new company - I didn't want a bad director stigma. Now, due to the current climate and lack of business for my new start-up, I
I am unable to continue paying HMRC (I currently owe about £17,000). A lady at HMRC told me off the record that I wouldn't need to continue paying if I had made some sort of effort, but I want some professional advice id possible on where I stand? |
| 3 L A T E S T R E P L I E S (Newest First) |
| Richard P |
Posted - 07 January 2011 : 10:29:34
Hi Tom
Limited companies, PG's, directors responsibilities is an absolute minefield they can be a very complex area and change to each inidividual case.
I believe that HMRC can chase you for upto 21 years ! (sorry)
I would recommend contacting Paul Johns at Reviva (one of the experts on this forum) he will be able to provide a number of options for you.
regards Richard
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| Tom.60 |
Posted - 06 January 2011 : 17:47:12
Thank you for your reply. Without going into great detail, we were both joint directors of a company we started whilst working together in another organisation. The idea was to break away after a successful start up as we were in competition with our existing employer, However, my co-director found clauses in his existing contract preventing him from working elsewhere (I did not have this restriction). So he resigned from our new venture and I became sole director. The new company and both of us as individuals were then sued in civil court by our current employer for alledgedly securing contracts from existing clients. A settlement out of court was reached but as my ex co-director contractually was stumped, he ended up paying the lions share of the costs. I, without really understanding the long-term outcome, allowed the assets left in the company to be used to off-set his costings, before the corporation tax was deducted and accounts were settled and paid to HMRC. The liable tax would die with the company, but if I wind it up owing corp tax, it relects badly on me as the sole director. Therefore I started an arrangement with HMRC to pay if off but am now struggling to pay it.My new company is doing OK, but not well enough to continue paying sums to HMRC who have been very aggressive (aprt from one lady) in pursuing it. My accountant says I can be chased for thi samount for years and I don't know what is the best course of action to take. I dodn't want to ask my former colleague to pay this, as he ended up paying 10 times the settlement figure I did.
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| Bigal4787 |
Posted - 06 January 2011 : 14:34:29
Hi Tom,
welcome to the forum, hopefully you'll find an answer here fromone of the experts.
when you say "I a am unable to pay HMRC",do you mean the company or you personally,and does it relate to corporation tax?
If the company is unable to pay its creditors, then you can if you wish apply to wind it up,as by the sound of it the business is struggling.
However, without knowing too much about the civil action involving the former director, and if the company is wound up, the OR as liquidator, or an IP could pursue them to recover some of those assets.
If you do want to wind the company up this is the publication from the insolvency service website:
http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/howtowindupyourown.pdf
But as always, seek advice fromone of the other experts on this forum.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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