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.
- UK tax exposure 126 2
- flat rate scheme 250 7
- Deferred income - financial concern no recognised turnover CT600 205 2
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 498 6
- Non-UK resident - where to pay income tax? 68 3
- Director's Earnings when Drawing from Goodwill profit from Sole Trading Company sale to Ltd Company 241 2
- What do young accountants know that you don't? 1,999 9
- Company limited by guarantee having only 1 member 160 3
- capital allowances - Demolition of a building 180 2
- Limited by Guarantee - Members 116 1
- VAT refund 335 3
- Are you going to Tick and Bash on 21 May? 1,291 37
- Turnover on a tax return 572 12
- incorrect old p60 572 15
- Company to buy shareholder land 164 4
- Posting Corp Tax to Sage Line 50 167 1
- Special dividends & CGT 215 1
- Networking 379 5
- Bank Interest Held by Solicitor During Divorce 288 2
- US company hiring UK citizens in UK 312 4