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Directors Loan and Dissolved Company

Directors Loan and Dissolved Company


I was a Director of a limited company that hit hard times and eventually ended up being struck off by companies house for not filling returns. 
I stuck my head in the sand during a period of around 3 years not filling in self assessment returns etc hoping that something magic would happen and it would either go away or I would win the lottery but alas neither has happened and I need to get it sorted.
My question is based around money I took out of the business. I was paying myself a salary and taking other money out as dividends. However now that the company no longer exists could I claim that the money I was going to declare as dividends was actually a directors loan and if I do will that mean as the company no longer exists I wouldn't be liable to pay tax on it.
Any help greatly appreciated - ordinarily I am a high rate tax payer and so is my wife so it's not as if I shirk paying tax this could just mean the difference between losing my house or not.


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30th Nov 2012 16:13

I get that Friday feeling again!

You should report the truth. You received salary and dividends and they should go on your self-assessment returns.

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30th Nov 2012 16:48

you didn't

Spend £20,000 on a web site by any chance?

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01st Dec 2012 12:13

Probably a wind-up

But a p***-poor one if so. Even if you could re-classify the income (which you can't) it wouldn't change your tax liability.

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01st Dec 2012 14:07


...spoken to several people recently who seem to think that they can just walk away from a limited company, wait for CH to dissolve it be free from their obligations.

I think the man down the pub has been very busy recently.


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01st Dec 2012 15:32


... and it seems to work most of the time!

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01st Dec 2012 15:50

I know

which is why it so popular!

Don't think its the type of niche I want to specialise in though:)

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01st Dec 2012 16:17

Me neither

... especially when they immediately start another company and the cycle start again!

I can't understand why CH/HMRC allow this and don't pursue the directors.

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01st Dec 2012 18:06

The crux of the matter is

finding the real culprits and tackling the ones that deserve to get clobbered for flouting the tax collectors hat.


Gladly of course HMRC have the Criminal Taxes Unit who lately seem to have cottoned on to oe wakened up on the phoenixism syndrome.


HOWEVER if it is the difference between keeping your house or paying all your worldly possessions over to the Govt to p*** it all away what would you choose....... not that I am condoning it but it does and can work .... but the truth deserves to be told otherwise you are risking more including your potential freedom



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02nd Dec 2012 09:08

Termination of employment

Was your company not VAT registered?  To be fair, VATmen tend to be more efficient than CTax depts, who assume that company failing to file does so because of serious financial difficulties.  It also seems that your company did not have much in its bank account and did not own any worthwhile assets either.

What happens to failing bankers and other fatcats?  They receive huge termination payments.  Non-contractual payments on termination of employment or office of up to £30,000 are tax-free.  Director’s loan written off is taxable.

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02nd Dec 2012 11:25

company strike off
Cannot give rise to a directors loan being written off

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02nd Dec 2012 16:27

HMRC may therefore try to attribute all drawings to remuneration and go against the director personally

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13th Dec 2012 11:23

Suspect dividends not dividends

I suspect your dividends were not dividends and therefore a loan so you are home and dry.

Especially as companies house have decided HMRC don't deserve the tax anyway.

This is NOT a legal way of avoiding your tax as you still have responsibilities as a director of a company to file your returns and company accounts etc.There are also plenty of  laws that would render you personally liable for the amount.

However these laws are never enforced and are therefore tantamount to approval by HMRC that you do not have to pay your tax.

HMRC could pursue you but they won't bother....too busy counting their pensions no doubt.

Who needs an expensive avoidance scheme?????

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13th Dec 2012 11:44

Oh and make sure you excercise your rights to be first in the queue for medical care and social handouts as there are some who have kindly made donations of tax for this reason and it would be rude not to accept their kind hospitality.

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13th Dec 2012 16:16

Directors' loans

Strictly the debt is an asset of the company that is bona vacantia and belongs to the Treasury but it is unlikely they wiil call for it.

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