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JackieChang
Starting Member
United Kingdom
1 Posts |
 Posted - 05 May 2011 : 06:38:50
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Hi everyone. I hope someone can advise me on my current situation.
I currently owe £60k through loans and credit cards and am paying £800 a month through a DMP. I run my own company and this has ceased to trade in the last couple of months. I have now found a new perm role that will still allow me to cover the DMP.
The problem is the company owes the HMRC £4k corp tax from last year and I am about to find out the corp tax due in Dec this year. As I have paid myself dividends I believe I am liable for the corp tax too. Which will mean my total debt will be approx £75k.
I own my own home which I believe is currently in about £10k negative equity - house will be valued on Monday to confirm.
I think it is best for me to declare myself bankrupt - well maybe wait for HMRC to force me to?
Questions are - can I declare myself bankrupt? Having the new perm role will that mean I can't?
Also should I wait for HMRC to do it or carry out the process myself? |
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admin
Forum Admin
239 Posts |
Posted - 09 May 2011 : 08:26:28
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Can anyone provide an answer here?
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Viki.W
forum expert
United Kingdom
2211 Posts |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 13 May 2011 : 17:29:47
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Hi,
You are correct in that CT will be due on the profits, which then gives the dividends, which are then taxed at whatever rate you're on.
There are no barriers to declaring yourself bankrupt, apart from the fact that liabilities should be more than £750 in England and Wales. Having another job is no barrier, if it means that you can pay into a DMP at £800 per month, then it would be likely that you'd get an IPA for a similar amount, but after 3 years that would be it.
Regarding the company, it has ceased trading, but who stopped it? did you, or has a creditor wound it up? either way, if declaring bankruptcy you would have to resign as a director, and you wouldn't be able to be a director whilst an undischarged bankrupt as it's one of the restrictions.
You could of course wait for HMRC to do it, but that could take anything from a year to many years, during which time you are dealing with your creditors.
The only other observation, is that even when a company is trading at a loss it can still pay salaries, but dividends can only be paid from profits, so an OR would look at the fact that the company must have been making a profit for dividends to be paid, but has since ceased trading, an OR may wonder if that contributed to the company failing or was it a combination of other factors.
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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Hi everyone. I hope someone can advise me
