No contract, no income = spend corporation tax money?

[LondonManc]

Speak to them, explain your situation. They may be able to give better advice or at least put a note on your file. Acting without their consent will end far worse than if you approach them before you act.

[quackhandle]

Chortle!

They're soft as tulipe regarding corporation tax - You can run up a debt of £20,000 before they even notice, and then they'll just fire off computer-generated letters for months, and only then pass it on to a debt management company, with which you can agree a nice small weekly sum to pay it off over several months.

When I lived oop North there was an owner of a local amateur football who did this. He opened up around half dozen companies and racked up dept on each of them, but he knew there was limit (250k?) before HMRC would become interested.

He ended up going to prison, but for drug dealing and not ripping off every man and his dog with shady deals.

qh

[d000hg]

There are many other things you could do first before doing that, such as selling the house, the car, and other assets, doing less-well paid work, drawing down on your pension perhaps, borrowing from friends, family, loans from banks, spending on credit cards, selling on Ebay, sending the wife out to work, kids to get a paper round. All these things are legal. Purposefully spending Corporation tax money on yourself is not, and could even land you in jail.

I don't think it will come to that though. 5 month's warchest should get you through it in my opinion.

Who is going to want to buy a car or a new house right now? Buying your tat is violating no-essential-travel guidelines (probably laws soon) and people are very cautious.

Finding work is going to be hard when everyone is struggling not to lay off workers.

- Emergency loans from the government might be the best bet if you qualify.
- Maxing out your credit cards and taking other loans. Cancel CC repayments or set to pay the minimum.
- Make sure you take any allowed mortgage holiday. If needed, stop paying the mortgage regardless
- Stop spending on luxuries, make sure you cancel gym memberships and so on you cannot use
- Consider stop paying council tax and utility bills

Ultimately though there is no such thing as "corporation tax money" there is just money in your company, and CT bills. I would not be surprised if CT bills were deferred or that late payments were not penalised.

If it comes down, really comes down to buying food with company money or not buying food... you'd be an idiot not to. The consequences can be dealt with later, but looking after your family is the top priority.