HMRC Refuse Payment Plan - CVA?

[eddieraver]

So I stopped trading in Feb and called HMRC to try and repay £18k Corp tax in instalments, suffice to say they didn't like the idea and now Im sort of stuck. Anyone advise on CVA or any other solutions for this?

I tried using the search but its says nothing found for almost anything Im putting into it!

[cojak]

So I stopped trading in Feb and called HMRC to try and repay £18k Corp tax in instalments, suffice to say they didn't like the idea and now Im sort of stuck. Anyone advise on CVA or any other solutions for this?

I tried using the search but its says nothing found for almost anything Im putting into it!

I'm afraid that I can't remember such a thread on here.

I would suggest going on the moneysavingexpert.com forums (specifically the debt forums), I'm pretty sure that you'll get more help on there.

Also you could contact Business Debtline on 0800 1976026 or Free online debt advice | free debt help |Business Debtline

[Maslins]

Possibly you're thinking of a "CVL" (Creditors Voluntary Liquidation) rather than a CVA? A licensed insolvency practitioner could help with this.

However, if the main reason the company can't afford to pay its corporation tax is because you've taken out funds from it that you shouldn't have, then be warned the liquidator will be obliged to try to recoup it from you. Typically they'd come to some agreement with you where you'll repay some (ie it won't be pain free for you), but not all, and HMRC will just get what they get. Theoretically the liquidator could force you into personal bankruptcy, though I think that's highly unlikely with the amount you mention.

Plus of course the liquidator will need to be paid. I'd suggest you expect circa £3k maybe for liquidator fees.

[eddieraver]

Good advice, thanks!

[Lance]

So I stopped trading in Feb and called HMRC to try and repay £18k Corp tax in instalments, suffice to say they didn't like the idea and now Im sort of stuck. Anyone advise on CVA or any other solutions for this?

I tried using the search but its says nothing found for almost anything Im putting into it!

you might want to consider trading again.
Somehow you need to get money into the company to pay the tax man.
If you can't afford CT that suggests you've taken illegal dividends.
You're up to date on VAT aren't you?

Choices as I see it are, start losing money to reduce the CT liability (depending on YE that might not be possible).
Borrow money perosnally to pay back the illegal dividends.
Start trading FAST to make the up the loss.
Ring them back and tell them the company is insolvent but you want to make it right. They might be more willing to allow installments if the alternative is more complex.

When's it due?
If you stopped in Feb, then at the very earliest you have till November (again depending on YE, and assuming it's not [previous YE you owe for).

[PerfectStorm]

How was your accountant allowing you to take out money that would be ringfenced, on or before payment, for tax?

[Manic]

How was your accountant allowing you to take out money that would be ringfenced, on or before payment, for tax?

Depends on your accountant relationship. My accountant is an adviser and doesn't control my bank account or restrict what I do. I am accounts savvy enough to know the rules and manage my company money accordingly. Maybe some people need extra help!