Limited Companies

[Alan Lung]

Any accountants hang around on here?

The "limited" in limited company means limited liability right? Does that apply to debts owed to HMRC?

Cheers.

[TWGL1]

Any accountants hang around on here?

The "limited" in limited company means limited liability right? Does that apply to debts owed to HMRC?

Cheers.

Limited liability usually means they pursue the company not the individual and it can lead to liquidation.

[cyril evans awaydays]

Any accountants hang around on here?

The "limited" in limited company means limited liability right? Does that apply to debts owed to HMRC?

Cheers.

There are now instances where HMRC can pursue Directors for the liability if they have evidence that those Directors have been engaged in regular abuse of the Insolvency Act but it is in limited (if you excuse the pun) circumstances.

Good explainer here

https://www.wrighthassall.co.uk/know...paying%20taxes.

[Alan Lung]

Limited liability usually means they pursue the company not the individual and it can lead to liquidation.

I want to wind the company up anyway, so no worries there.

[pipster]

I want to wind the company up anyway, so no worries there.

I have just closed by Ltd Co (after 26 years of trading)

1. Speak to your accountant.
2. If you are closing it now - there are new rules that apply to dividends.
3. Max out the capital distribution - and then look at the dividend situation.
4. Look at the possibility of investing any money currently in the company into a pension.

Close the company and keep money back to pay any corp tax due etc. That's what I just did - all relatively painless and cost £500 for the accountant to do.

If you had a bounce back loan be careful....interesting fact - at the Senedd - they have exactly ONE person who is chasing bounce back / covid loans - just him - no one else. He has thousands of cases on his books - and knows it's a hopeless task. They may have increased the team since Jan this year - but I doubt it.

If you owe VAT - you need to pay it either through your company or personally - as they do have some wide ranging powers.

[Alan Lung]

I have just closed by Ltd Co (after 26 years of trading)

1. Speak to your accountant.
2. If you are closing it now - there are new rules that apply to dividends.
3. Max out the capital distribution - and then look at the dividend situation.
4. Look at the possibility of investing any money currently in the company into a pension.

Close the company and keep money back to pay any corp tax due etc. That's what I just did - all relatively painless and cost £500 for the accountant to do.

If you had a bounce back loan be careful....interesting fact - at the Senedd - they have exactly ONE person who is chasing bounce back / covid loans - just him - no one else. He has thousands of cases on his books - and knows it's a hopeless task. They may have increased the team since Jan this year - but I doubt it.

If you owe VAT - you need to pay it either through your company or personally - as they do have some wide ranging powers.

Cheers pal, appreciate the reply. Only have one outstanding bill which is Corp Tax. I've managed to get it down from around 7 grand to 1,500. I was quite pleased with this but they've now passed it to a DCA without any notice.

I guess what I need to know is are the DCA a threat or can I tell them to do one?

[The Bloop]

I assume thecompany is solvent and you just want to stoo trading. If so, go down the MVL route. A liquidator will sort it for you. Pay your tax bills as we all benefit from the public purse. The statutory duties of being a company director include paying your tax in full and on time. Also be careful about disposing of any assets at under value, especially if your bills haven't been paid. Once creditors have been sorted and assets liquidated you'll be able to get hold of any money left over.

[HiVis]

Any accountants hang around on here?

The "limited" in limited company means limited liability right? Does that apply to debts owed to HMRC?

Cheers.

the shareholders liability is limited to any unpaid shares
the directors liability is limited assuming they have acted in good faith

this includes all liabilities, including those to HMRC.

[HiVis]

Cheers pal, appreciate the reply. Only have one outstanding bill which is Corp Tax. I've managed to get it down from around 7 grand to 1,500. I was quite pleased with this but they've now passed it to a DCA without any notice.

I guess what I need to know is are the DCA a threat or can I tell them to do one?

ignore the DCA. the debt will go back to HMRC after three months.

for £1500 HMRC aren't going to bother chasing you other than sending the usual begging letters. complete a DS01 and submit to companies house and voila, 6 months later the company is dissolved.

[HiVis]

I assume thecompany is solvent and you just want to stoo trading. If so, go down the MVL route. A liquidator will sort it for you. Pay your tax bills as we all benefit from the public purse. The statutory duties of being a company director include paying your tax in full and on time. Also be careful about disposing of any assets at under value, especially if your bills haven't been paid. Once creditors have been sorted and assets liquidated you'll be able to get hold of any money left over.

You don't need an IP for a company with net assets less than £25k. Your accountant can do it.

[pipster]

Cheers pal, appreciate the reply. Only have one outstanding bill which is Corp Tax. I've managed to get it down from around 7 grand to 1,500. I was quite pleased with this but they've now passed it to a DCA without any notice.

I guess what I need to know is are the DCA a threat or can I tell them to do one?

Cant help you on the DCA mate sorry.

One thing I forgot to add - if you go down the capital distributions route - then you cant open a similar company for 2 years - other wise HMRC may ask questions and stop you from opening a new company

[Alan Lung]

ignore the DCA. the debt will go back to HMRC after three months.

for £1500 HMRC aren't going to bother chasing you other than sending the usual begging letters. complete a DS01 and submit to companies house and voila, 6 months later the company is dissolved.

Cheers. Are you sure I can ignore the DCA? Won't they just go to a court and hit me with a CCJ?