Share this content
0
3
1295

Legal obligation of CT liability on past directors

Basically we have a limited company client which had three directors.

Two directors resigned at the year end.

We prepared the accounts and CT return and the liability was £x.

If the remaining director paid this out of his own pocket should the other two in theory owe there share?

Or as I see it the bill is the company's and as such there may be no obligation on their part?
Nick Robinson

Replies

Please login or register to join the discussion.

avatar
31st Oct 2007 15:48

company's liability
Your last sentence is correct - a corporation tax liability is a debt of the company not of the directors (separate legal persons) personally.

There would be no obligation to former directors to pay unless they have an overdrawn loan account, in which case they would be liable to pay this amount back to the company.

Thanks (0)
avatar
31st Oct 2007 18:08

Corporation Tax
Yes it is a company liability but as you paid it on behalf of the company it would be credited to your directors loan account, and thus if the money was in the company you could draw it back out subject to the position on your loan account

Thanks (0)
avatar
01st Nov 2007 11:49

No
The company owes him.

Why has he paid it personally?

Thanks (0)