I was wondering if someone could advise before I reach out to HMRC, as I admit I haven't had a client this messy in a long time.
My client has had income of around £500k into a personal Company over the last 3 years. This income was largely taken out of the Company account but no salary or dividends were declared, hence being classified as a loan - currently at around £450k! We are now in the process of cleaning up the accounts and i understand there would be the following charges (which will incur penalties and interest):
1. S.455 Corporation tax charge for the Company
2. Class 1a NIC for the Company
3. A benefit in kind charge for the client personally
My query is that how does one register and declare charges 2 and 3 above, without the Company ever having being registered as an employer? Is this something that should be registered with a back date and then declared? Any previous experience in a similar issue would be much appreciated!