My client is sufferring in the current economic climate.
The good news is that they are continuing to get orders, their customers are paying on time and they are only a couple of months behind paying trade creditors. The P&L shows a small profit. However, they owe HMRC re PAYE, VAT & Corporation tax. They had a payment plan in place and were keeping up with the payments until last September. They have only made minimal payments since then.
They are in the process of trying to sell their house and will use some of the funds to repay the HMRC debt (they have a substantial amount of equity in the house).
Could they be prosecuted for wrongful trading as the company doesn't have the money to pay HMRC? Would the fact that the directors are trying to raise the money to pay the debt be sufficient to say that the company is a going concern? The bank is supporting them and has recently given them a loan, with personal guarantees from the directors.
Should they speak to an IP? They want to avoid incurring these costs if they can avoid it.
- Dazed & confused 229 3
- Tax efficient holding company structure 293 1
- Property scam victim 84 1
- Starting an accountancy practice for bachelors? 196 4
- Recommendation for a good website on exchange rate forecast 151 11
- Where can I get Quickbooks help 139 5
- Law Shipping/Odeon related question 67 1
- Concerned about RTI 2014 2,668 68
- Loss on disposal and impairment 62 1
- Are HMRC getting it right? 125 1
- Comments on this scenario 142 3
- PPR election - what do you think? 235 7
- Penalties 117 1
- SAGE con 234 4
- rates of pay query 229 3
- Dormant company owns shares in another company 101 2
- Pension contributions higher rate extension? 204 1
- Trading Structure / Illegal Trading 124 1
- Overpayment relief claim 163 5
- Charity reserves 135 3
- Desperately seeking Susan, Sam or anyone with any other name 1,022
- Experience with Islamic investor following Sharia-compliant rules? 559
- Darwinpay Partnership Assessment 364
- S464A Charge to tax: conferring benefit & BIK 278
- auto enrolment - calculation of first pension deduction 215
- Charge out rates in London? 215
- Personal consumption by landlord 183
- Interest on Loan to a Company 175
- Bank interest in 'near' facility recall situation 151
- Agent fees to sell business 144