So, you took money out of your company that should have been left in it to pay the Corporation Tax. You've spent that money one way or another.
So, apparently, you issued illegal dividends to yourself. Is that right?
Your company is now insolvent. So HMRC will hold you personally liable for that CT, since you took the money that should have been held to pay it as dividends. It may be they will even try to recover some of it from your ex, if she has some of that money, on the grounds that you didn't really have the money and it shouldn't have gone to her. Bankruptcy for your company isn't going to solve this, you'll have to go bankrupt yourself as well.
You can't blame this on IR35. The new law hasn't even taken effect yet. You are the one who decided to take the money out of the company rather than use it to pay the CT. Neither IR35 nor your ex forced you to do that.
Since it is CT, you've been operating outside IR35. That means the tax level was not excessive. We all have to pay that tax, and when some don't it means more taxes or poorer services for everyone else.
One year's CT is not going to be that much as to be unpayable. If you had £100K profit, it's £19K. If you had that much profit you should be able to get a perm/brolly role that pays £60K or so. Tighten your belt, work, and pay the debt.
I'm very sorry to hear about the divorce and the loss of all assets but I don't think that justifies taking illegal dividends to defraud the Exchequer (and thus society as a whole), and then filing bankruptcy to avoid the consequences.
So, apparently, you issued illegal dividends to yourself. Is that right?
Your company is now insolvent. So HMRC will hold you personally liable for that CT, since you took the money that should have been held to pay it as dividends. It may be they will even try to recover some of it from your ex, if she has some of that money, on the grounds that you didn't really have the money and it shouldn't have gone to her. Bankruptcy for your company isn't going to solve this, you'll have to go bankrupt yourself as well.
You can't blame this on IR35. The new law hasn't even taken effect yet. You are the one who decided to take the money out of the company rather than use it to pay the CT. Neither IR35 nor your ex forced you to do that.
Since it is CT, you've been operating outside IR35. That means the tax level was not excessive. We all have to pay that tax, and when some don't it means more taxes or poorer services for everyone else.
One year's CT is not going to be that much as to be unpayable. If you had £100K profit, it's £19K. If you had that much profit you should be able to get a perm/brolly role that pays £60K or so. Tighten your belt, work, and pay the debt.
I'm very sorry to hear about the divorce and the loss of all assets but I don't think that justifies taking illegal dividends to defraud the Exchequer (and thus society as a whole), and then filing bankruptcy to avoid the consequences.
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