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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Insolvent “one man band” companies who can’t pay their company tax

Insolvent “one man band” companies who can’t pay their company tax

I have had quite a lot of calls in the last three weeks or so from one man band contractor companies who now find that they cannot pay corporation tax bills built up over the last 15 months or so.

 

With our tax system and the requirement to produce accounts at one stage in time and account for the profits later in the year, it can and does cause problems when there is a downturn in business.

 

Many of the callers to our helpline are now facing demands for corporation tax from the Inland Revenue and are finding that the funds that they had set aside to pay this tax has been used up in the intervening months to live on, as work has dried up.

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Many of our callers are worried that they will be come personally liable for the tax liability of these companies. We are able to assure them that the tax liability is lost when the company is wound up. We will be able to deal with the revenue and wind up the old company, leaving the individual free to set up a new company and trade again.

 

When dealing with the Inland Revenue it is always better to be pro-active and take steps early. As a company director, you have a duty to run your company so that it remains solvent. If it is insolvent then it is also a responsibility to close that limited company if it will not be able to pay its debts and to trade it will cause even more loses.

 

It is not a crime to trade a company with loses in the expectation that trade will pick up and that debts can be paid. However as soon as it is clear that debts can’t be paid through continued trading, steps need to be taken.

 

We are now helping very many labour only trading companies declare themselves insolvent. We are able to wind up a company for as little as £3500 plus vat. This is very much less than other insolvency practitioners across the country will charge.

For personal contact, email sthatcher@helpwithdebtuk.com. If you have any debt problem whatsover either personal or corporate make Steve your first call on 0808 160 5577. All telephone advice is free.

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