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IR35 Insolvency

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    #11
    Originally posted by Analyzer View Post
    All situations are different.

    + Did not see being caught up in IR35 (long story)
    + Current EOY not calculated until August.

    And no, I don't retain a sizable % for capital for future tax. I pay incrementally (but do pay). Point is with many large organizations blanket forcing inside IR35, I've had zero time to plan and therefore caught with this issue.

    Curious if HMRC/or anyone had published an approach to this dilemma.
    Blanket inside is not allowed under the legislation. I believe you mean blanket ban on the use of PSCs.

    If you didn't see that coming then you haven't been paying attention for the past year or so.

    You will need to put some cash back into your business to pay its liabilities.

    Comment


      #12
      At any one time, you should make sure, as far as possible, that you've enough money in your company account to cover tax liability. The means before you issue a dividend, you calculate whether you are in profit. If not - no dividend.

      Obviously, some people take risks with this - i.e. on a four month contract, may decided that they can take a dividend now, based on the income for the next four months. But it isn't advisable.
      Down with racism. Long live miscegenation!

      Comment


        #13
        Originally posted by Analyzer View Post
        All situations are different.
        No they are truly not.


        There are two certainties in life - Death and Taxes.


        You paid yourself too much so you need to pay that money back to the company so it can pay it's taxes.
        "You’re just a bad memory who doesn’t know when to go away" JR

        Comment


          #14
          Originally posted by Analyzer View Post
          All situations are different.
          No they are not. It's the law. The only differences are someone that is doing it properly and someone that isn't
          + Did not see being caught up in IR35 (long story)
          + Current EOY not calculated until August.
          So you plan ahead by not spending your tax money. It's as simple as that.
          If you do get in to such dire straits that you have to spend it you just pay it back later.
          And no, I don't retain a sizable % for capital for future tax. I pay incrementally (but do pay). Point is with many large organizations blanket forcing inside IR35, I've had zero time to plan and therefore caught with this issue.
          We can see that. Maybe you'll learn now you are doing it completely wrong. BIDI
          Curious if HMRC/or anyone had published an approach to this dilemma.
          They do. It's to help their investigators rip people like a you new one when they come calling. It also details the interest and penalties when they do find someone that's done it wrong.

          Bearing in mind not one single post in this tread has said anything but pay them back why on earth are you still trying to argue otherwise. You did it wrong first time, you are still arguing. You are either trolling or you are a bit of an idiot.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #15
            You could try the same tactic as some other businesses that are in trouble I guess.

            https://www.contractoruk.com/forums/...ml#post2744561
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #16
              Could you repay some of the dividends you've paid yourself? Since the company doesn't have the funds to pay the dividends, then they should not have been paid out in the first place.

              Are you new to contracting?
              Have you never discussed the best ways to pay yourself with your accountants?
              …Maybe we ain’t that young anymore

              Comment


                #17
                Originally posted by WTFH View Post
                Could you repay some of the dividends you've paid yourself? Since the company doesn't have the funds to pay the dividends, then they should not have been paid out in the first place.
                That is what the OP will have to do - no choice, really - they're ultra vires. OP will need to speak to their accountant about reversing them (assuming they have one).

                Comment


                  #18
                  Originally posted by Analyzer View Post
                  All situations are different.

                  + Did not see being caught up in IR35 (long story)
                  + Current EOY not calculated until August.

                  And no, I don't retain a sizable % for capital for future tax. I pay incrementally (but do pay). Point is with many large organizations blanket forcing inside IR35, I've had over 3 years to plan but put my head in the sand instead.

                  Curious if HMRC/or anyone had published an approach to this dilemma.
                  FTFY
                  See You Next Tuesday

                  Comment


                    #19
                    Originally posted by Analyzer View Post
                    All situations are different.

                    + Did not see being caught up in IR35 (long story)
                    + Current EOY not calculated until August.

                    And no, I don't retain a sizable % for capital for future tax. I pay incrementally (but do pay). Point is with many large organizations blanket forcing inside IR35, I've had zero time to plan and therefore caught with this issue.

                    Curious if HMRC/or anyone had published an approach to this dilemma.
                    This has to be a windup right?

                    Let me add another tax in for you. As you have taken more dividends than the company has funds to cover, there will be a section 455 charge to pay on top, for being overdrawn on the directors loan account.

                    Good luck!

                    Comment


                      #20
                      I have a cunning plan...

                      Start another Ltd Co. Have it perform a hostile take over of your original Ltd Co. "Spend" all the money in original Ltd Co "Fighting the hostile takeover".

                      Sorted.

                      Comment

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