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.
- VAT refund if only output tax on first claim 402 4
- Setting up a practice 280 4
- Very large share capital by mistake 425 6
- 24 month rule and expenses 198 1
- Love is in the air 488 6
- HP agreement in Directors name but payments under company 647 17
- Stamp Duty 287 4
- Physiotherapist and vat and agency work ( one for Les Howard???) 233 4
- I am 34 years old, am I too old to start a career in Accounting ? which is the best way to pursue it 1,781 21
- Another Sneaky Tax Hike! 522 5
- Incorporation of gp practise 213 1
- Sage Instant Accounts Complete De-install problem 258 9
- Auto enrolment confusion 2,018 46
- Client Paperwork Retention? 561 13
- Paid staff their normal salary instead of SMP 569 7
- Tax Overlap Reporting 362 4
- Pay rise - how to enter in Moneysoft 387 9
- Reimbursing director travel costs 444 6
- Allegedly ICAS most of us at 50 should pack up - Interesting 484 8
- Sage 50 VAT Return 301 2
- DTA tie-breaker issue 298
- Tax Implicatins on a Directors Loan 286
- CGT for NOn UK residents 278
- Employer's pension contribution - need to be PAYE registered? 275
- What are the tax implications of overseas sales through a UK based company? 251
- profit or loss on furnishings and deed of trust 238
- Apprenticeship Levy 236
- Capital Gains personal representatives 219
- Tenants in Common - Actual % split not written down 219
- Discretionary payment to sick employee 198