Ltd Co client cannot pay corporation tax
I have a Ltd Company client who has no prospect of paying a £10K coporation tax bill due 1st January. The reason for this is that he funded very expensive private medical expenses (not of a cosmetic nature) straight from dividends out of the Company. This bill relates to the year ended 31st March 2012 and trhere will be another similar liability for the forthcoming March year end that will also not be able to be be paid.
I cannot help but think that Revenue and Customs are not going to be sympathetic despite the medical condition as its a case of living to your means and had he been salaried the medical expenses would not have been possible.
Despite my view, I do not know what to do next. Client is talking about walking away but I do not know of the ramifications given his deliberate avoidance of paying his tax.
Would he be directed to an insolvency practitioner at this stage to close the whole thing down or are there any other views of what should now be done.
- Company limited by guarantee having only 1 member 112 3
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 468 5
- flat rate scheme 140 3
- capital allowances - Demolition of a building 162 2
- Limited by Guarantee - Members 78 1
- VAT refund 312 3
- Are you going to Tick and Bash on 21 May? 1,283 37
- Turnover on a tax return 547 12
- incorrect old p60 563 15
- Company to buy shareholder land 119 4
- Deferred income - financial concern no recognised turnover CT600 182 1
- Posting Corp Tax to Sage Line 50 151 1
- Special dividends & CGT 203 1
- Director's Earnings when Drawing from Goodwill profit from Sole Trading Company sale to Ltd Company 194 1
- Networking 366 5
- Bank Interest Held by Solicitor During Divorce 279 2
- US company hiring UK citizens in UK 305 4
- What VAT to reclaim on van purchased on HP? 337 5
- Professional coaching claimable? 297 2
- IT Contractor 286 1