Settlement, NI and limited company Settlement, NI and limited company
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  1. #1

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    Default Settlement, NI and limited company

    I used a loan scheme through my own limited company for a few years. I’ve recently received settlement figures from HMRC which only include PAYE. They have however included calculations for employer and employees NI in the pack.

    If I go and settle the PAYE will my limited company then receive a demand for NI? If the company is dissolved before then can the liabilities then be transferred to the director?
    This seems to suggest that NI can’t be transferred to the employee if employer no longer exists but what are the implications for the company director?


    Tackling disguised remuneration - GOV.UK


    HMRC have also incorrectly calculated the PAYE even though I have provided all the relevant loan details. Can they come after the limited company for the rest of the PAYE?

  2. #2

    Still gathering requirements...


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    Is the Ltd company still active or has it liquidated?

  3. #3

    Should post faster


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    I don't think closing it is an option, as it seems you need HMRCs 'permission'.

    Strike off your limited company from the Companies Register: Close down your company - GOV.UK


    I'm in the same situation as you, so I assume this pack will make its way to me soon. Do you have to pay both employer AND employee NIC?

  4. #4

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    from another thread

    Quote Originally Posted by webberg View Post
    I think that the you need to distinguish between

    Employees NIC - primary contributions

    Employers NIC - secondary contributions

    The legislation released very recently is for secondary contributions.

    Bear in mind that the loan charge arises on employers and this seems to say that where that actually happens, secondary contributions are due.

    Where the employer is around but does not pay, primary contributions will be due (thank you Iliketax) but I confess I remain unclear why in that case the employer is not assessed.

    Where the employer is not around, primary NIC is probaly not due.

    I'd pay the PAYE settlement they ask for, so your settled personally. Then just leave it there.

  5. #5

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    [QUOTE=here4beer;2621910]I don't think closing it is an option, as it seems you need HMRCs 'permission'.

    Strike off your limited company from the Companies Register: Close down your company - GOV.UK


    Yes it would seem so....my Ltd entered CVL in May 2018, still not completed & seems unlikely to do so. Reg 80's issued to the liquidator for the PAYE / NIC, so presumably Reg 81's will follow in April / May.

    Worryingly, also been advised that HMRC are insisting all liquidators assess for possible director misfeasance by virtue of having used schemes.

  6. #6

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    Sounds similar to me, they also gave me a few other calculations which worked out more expensive. If you were the only director in the company (and 100% shareholder) etc I assume HMRC will make director liable to settle total anyway.

  7. #7

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    Quote Originally Posted by here4beer View Post
    I don't think closing it is an option, as it seems you need HMRCs 'permission'.

    Strike off your limited company from the Companies Register: Close down your company - GOV.UK


    I'm in the same situation as you, so I assume this pack will make its way to me soon. Do you have to pay both employer AND employee NIC?
    They haven’t asked for NI as part of the settlement but they have included calculations for employer and employee NI - I’m concerned that they will start investing the company now.

  8. #8

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    Quote Originally Posted by fatpug View Post
    They haven’t asked for NI as part of the settlement but they have included calculations for employer and employee NI - I’m concerned that they will start investing the company now.
    I'm told (AFTER I came forward to settle) that a personal settlement is different to a full settlement, as that'll involve your company too. If i'd have known that I doubt I'd have bothered comming forwards.

    I plan to pay the PAYE, as that's all they're asking for. Then wait and see if they ask for more. Youd hope they'll be busy hunting down the people still hiding doing the schemes, or the promoters still active today selling them...

    What sort of percentages are they asking for? Another thread on here has someone settled fully in the same situation, paid all NI etc, and now they want Corp tax. Hopefully a mistake on HMRCs part. But just shows how hard they're prepared to go. Taxed WAY beyond that of a PAYE employee, not including the tens of thousands of pounds the promoters have already taken.

  9. #9

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    I've been advised it's very possible Employer NIC won't get passed down, but I'm not banking on it.

    Yes, Corp Tax is the other big concern now too if they're starting to sniff round that too. Outrageous of course, but that hasn't stopped them going after IHT.

  10. #10

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    Quote Originally Posted by Ltdoptions View Post
    I've been advised it's very possible Employer NIC won't get passed down, but I'm not banking on it.

    Yes, Corp Tax is the other big concern now too if they're starting to sniff round that too. Outrageous of course, but that hasn't stopped them going after IHT.
    I've come forward to pay PAYE and an NIC, but I'll argue Corp tax forever. EBT is an allowable expense. Disclosing loans and income doesn't automatically incriminate any EBT contributions.

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