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.
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- Have I dropped a major clanger? 2,359 22
- Accountancy Career 335 4
- Do I need to report this to SOCA 3,702 39
- Holiday Pay whilst on Mat Leave 103 1
- HMRC Agents Line 220 4
- calculation DTR restriction 95 1
- Company Director In Prison 466 11
- SMP reclaimable by employer 90 1
- AWeb - download file 184 3
- Charity work 251 11
- Help with HMRC investigation 271 6
- Director Drawings 193 5
- Subcontractor and CIS Deductions made by Contractor 278 13
- Managing Employee Expenses 241 7
- Collection or business assets 117 1
- Incorporated when they should not have 277 8
- Tax position re this lease? 372 9
- Do I need a smartphone? 734 23
- Is compensation for surrender of a lease subject to VAT 110 2
- Property exchange - 8-year legal delay following fall-out 685
- Have you staged yet for auto enrolment? 523
- Cancelled 428
- Cancelled 366
- SAGE Payroll Data for Import to MS Dynamics AX 362
- Probiz 338
- Free-standing washing machine - unfurnished lettings 329
- Phishing emails purporting to be from CIPFA? 244
- Is this UK incapacity benefit taxable in UK or Jersey? 218
- Another HMRC computer glitch? 204