Limited Co client, ceased trading, owes £10k Corp Tax + £10k s455, mirrored by £20k overdrawn DCA.
As you can see, he's reduced his overdrawn DCA already by £20k by paying CT out of personal funds.
My question is, if I tried to recover £5k of the s455 from HMRC now, presumably they would argue that it can't be repaid until the CT liability is cleared? Would they not simply agree to credit £5k against the £20k creditor?
Presumably client would need to pay the entire £20k CT liability to HMRC first, then apply for £10k s455 to be refunded afterwards?
I'm not too experienced with s455 as you can tell!
Thanks for any help
Replies (3)
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Don't understand
In your second paragraph you say that the director has already paid the £20K CT out of personal funds and yet your first paragraph says that the CT due was only £10K and the s. 455 tax due was also £10K (which doesn't stack up with a £20K overdrawn loan account). This suggests that both the CT and s. 455 have already been paid. So why in your third and fourth paragraphs do you suggest that the CT (now shown as £20K) still needs to be paid?
Dates
I'm still not clear on the dates but, if you've a s455 repayment due on, say, 1 Jan 2015, you can set it off against the tax due on 1 Jan 2015. You don't have to pay the tax to get the s455 repayment.