Directors bleeding companies dry with illegal dividends and loans

Posted by PM | on Mon, 02/08/2010 - 15:15 4583 4 comments

The number of directors taking illegal dividends or loans from their companies is on the increase, and it’s been triggered by the income tax increase, according to insolvency experts.

Data from the Insolvency Service shows that 2,169 directors of insolvent companies faced disqualification proceedings in the year to March 31 2010, up 17% from 1,852 the year before.

Continued...

Directors bleeding

weaversmiths | Wed, 04/08/2010 - 12:28 | Permalink

HMRC wants these directors banned and they want to pursue these directors through the courts for all the money that they can.............................. "

That'll be the day! Bring it on ...

TheAncientOne

Never going to happen......

frauke | Wed, 04/08/2010 - 13:23 | Permalink

Still too many companies get Struck off the register due to the director taking all the money in the accounts and not doing the paperwork. I have refused to work for these companies in the past - because they can't pay thier bills (including mine) as the Director has spent all them money on themselves. Only to see Camplies house strike the companies off years later due to non submission etc.... Now it tends to happen sooner - but it is still common place.

Every case I have seen - they have got away with it.

give them an exam in order to become directors

abelljms | Thu, 05/08/2010 - 20:47 | Permalink

Normal
0

A while ago I started writing a quiz for new directors who come to me, but of course it’ll never catch on…

some sample questions........

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why do you do accounts for me every 5 minutes	So I can practice my reading	They are free scrap paper	To fob off HMRC
what is tax?	It is what pays for the war in xxx	what the little people pay	what holds carpets down
what expenses may I legitimately claim against my business	Anything I need whilst living my hectic social life	Nothing per HMRC	Loads, but judiciously drafted to fool HMRC into thinking it’s all for my poverty-struck business

etc... it's a serious subject, but HMRC haven't a clue how to slow them down. I can tell them how to make £m, but they'll never ask me.

Illegal loans and dividends

freelance32 | Mon, 09/08/2010 - 12:54 | Permalink

I know everyone gets hot under the collar here - but I ensure my clients fully understand the implications, that we keep a close eye on withdrawals and do the paperwork, look at reserves on-going and if your clients need to obtain regular tax effective withdrawals - have a look at EBTs etc. Or dont act for them. or do the maths - some of the company cars now are worth running through BIK and clients can get a lot for the tax charge if you plan ahead with salary, dividend, loans and pensions.