No contract, no income = spend corporation tax money?

[juckky]

My contract is up end of the week and next contract got pulled so I could be out of contract. I have enough in the company to last 4 -5 months, but I was wondering who else has considered what they will do should this rumble on for 12 months. If it means putting food in the kids months, would you resort to spending the corporation tax money you've saved in the business account?

[BrilloPad]

My contract is up end of the week and next contract got pulled so I could be out of contract. I have enough in the company to last 4 -5 months, but I was wondering who else has considered what they will do should this rumble on for 12 months. If it means putting food in the kids months, would you resort to spending the corporation tax money you've saved in the business account?

No. If you are tempted, pay HMRC most of what you think you owe now.

[GJABS]

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.

[northernladuk]

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.

Totally this. Tighten your belt and make thr 5 months last 10.

[Paddy]

My contract is up end of the week and next contract got pulled so I could be out of contract. I have enough in the company to last 4 -5 months, but I was wondering who else has considered what they will do should this rumble on for 12 months. If it means putting food in the kids months, would you resort to spending the corporation tax money you've saved in the business account?

Mark 12:17

[ladymuck]

Do not, under any circumstances, spend money you owe to HMRC

[yorkshirespud]

Not quite true anymore with the 3 month pause on VAT payments. You have until end of 2021 tax year to recoup this quarter’s VAT if you spend it


Sent from my iPhone using Contractor UK Forum

[GhostofTarbera]

No contract, no income = spend corporation tax money?

My contract is up end of the week and next contract got pulled so I could be out of contract. I have enough in the company to last 4 -5 months, but I was wondering who else has considered what they will do should this rumble on for 12 months. If it means putting food in the kids months, would you resort to spending the corporation tax money you've saved in the business account?

100% I would

If no other assets, zero money in accounts and credit cards maxed out


But since you can start as Asda tomorrow as delivery driver your 5 months could stretch a whole year

Sent from my iPhone using Contractor UK Forum

[juckky]

Having read those responses you've convinced me that doing such a thing would be like robbing the mafia.

[eek]

Having read those responses you've convinced me that doing such a thing would be like robbing the mafia.

Robbing the mafia is less risky...