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.
- Partnership Registration 43 2
- Can you declare dividends and not withdraw them 873 36
- Owners loan to business - is interest taxable 81 2
- Would this save hours of your time? 654 12
- Audit Required 1,173 22
- HMRC to sell our tax data to private companies 292 9
- Residential Management Companies 72 2
- Value pricing 2,841 37
- Problems with CT600 filing 385 5
- Flat rate scheme - which rate to use? 379 11
- Payroll software for Mac 114 1
- Online / Cloud Data Back Up 100 2
- Excel problem - pivot tables and multiple data sources 211 5
- CIS and Close Company 199 6
- LLP members share of profits 635 32
- Late P800 demand shows later year? 423 20
- Electronically supplied services - B2B 136 4
- Employment support allowance and self employed 96 1
- Registered Office 105 2
- Winding up a beneficiary will trust 110 1
- Residential Property Purchase Above £750K 940
- Using Sage with Sofa Categories 659
- Understanding the implications of January 2015 VAT changes for downloads on threshold for VAT registration 391
- transferring simply accounting 2010 from xp to windows 7 330
- rent-a-room allowance for part of the year 255
- Paye procedures for CVA 246
- HMRC Second Income Campaign - not so much a question as heads up 242
- Expenses Re-imbursed on the VAT Flat Rate Scheme 191
- Compliance Checks - Time limits 188
- Pension Fixed Protection 184