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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- Help 141 9
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- Where has Portia gone? 5,027 109
- Overlap profit 292 7
- Moneysoft or Sage payroll with auto enrolment? 318 6
- RTI Payroll ID 2,064 25
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- Payments on account 185 2
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- OMG HMRC !!!! Employ some ppl!! 649 12
- Keeping disastrous accounts 413 5
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- In pratice using part time accountants 349 3
- On the high seas 115 1
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- Spousal transfer and PPR 859 34
- Services via intermediaries and new HMRC reporting requirements 853
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- Sanzar 342
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- Kashflow balance sheet difference 296
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- new investor structure 200
- VAT Registration 181