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Please Help: Implications of a Limited Company going into Liquidation (owing £80,000 Tax) |
Submitted on: 5th Jan 2010 by Non-Member | Total Answers: 1
I really need some urgent advice, my husband has a Limited Company which owes approx £80,000 in tax, made up of £30,000 payroll, £20,000 VAT and £30,000 personal earnings that he has payed to himself. He instructed an accountant to take care of payroll and tax etc but now we have been landed with this tax bill. Our newly appointed accountant has confirmed that the tax office calculations are correct. The only way forward that I can see is liquidating the company but we are unclear on the implications to my husband, as a sole director and the procedure itself.
He is having a meeting with the tax man tommorrow, I really need some advice, I dont eeven know if its an inprisonment offence or if liquidating the business will mean we'll never get a motgage again or credit, please help.......
Re: Please Help: Implications of a Limited Company going ...
A limited company means that your husband's liability for the debt is limited. He could get into trouble as a director if he has traded the business wrongfully - for example trading while the business is insolvent but the company itself is liable for its debts..
If it turns out he has personal liability for the debt - if for example he has given a guarantee - you can get free debt advice from the debt charities on this site.
He needs to speak to an insolvency practitioner about the implications of liquidation - which is a kind of business bankruptcy. There are other options such as administration and company voluntary arrangements which might allow the business to survive,
Two good places to look for business advice are Business Debtline http://www.bdl.org.uk/ which is another debt advice charity.
and www.r3,org,uk which is a trade body for Insolvency Practitioners..
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