Ex contractor, now perm really needs advice.. Ex contractor, now perm really needs advice.. - Page 2
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Posts 11 to 14 of 14
  1. #11

    Prof Cunning @ Oxford Uni

    WTFH's Avatar
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    Nov 2012


    Can I ask why you have such a large directors' loan, and have you been taking money out of the company recently as a loan rather than salary/dividend?

    Have you taken out more money than leaves enough to pay CT, etc, in recent years?

    Did you discuss it with your accountant before doing it?
    I'm perfect, in a very specific and limited way.
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  2. #12

    Super poster

    fullyautomatix's Avatar
    Join Date
    Feb 2010


    I suspect the OP might not return to the thread.
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  3. #13

    Contractor Among Contractors

    wattaj's Avatar
    Join Date
    Aug 2006


    We do not have the full story here to be able to advise. Suggest OP speaks to their accountant and gets a complete breakdown of the debt and state of the company finances.

    Former member of IPSE.

    Many a mickle makes a muckle.


  4. #14

    Contractor Among Contractors

    Join Date
    Jul 2019


    I wonder if the situation is:

    Company has balance sheet assets consisting of £18K directors loan and £400 in bank, and liabilities of £5,400 to HMRC (£4,700 and £700).

    OP is conflating those, and adding them up (rounded) to £25K, whereas company actually has net assets of £13K (18.4K - 5.4K) but only £400 liquid assets.

    If so, OP need to get £5K back into the company to pay off HMRC's £5.4K.

    Doing so would leave the balance sheet with just the remainder of the directors loan (£13K), potentially with S455 liabilities already paid.

    If the OP can't get any funds into the company, HMRC could (eventually) force closure of the company and call in the directors loan so they can get their £5.4K.

    I am not a accountant etc, and this is based on the OPs confusing information. As other have said, either the OP has misunderstood what their accountant has said, or they have been let down by their accountant.
    Last edited by Paralytic; 5th November 2020 at 09:49.

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