Self Assessment: Advice when you cannot pay the tax due
What happens when a director cannot afford to pay their personal Self-assessment tax bill? As a company director, you must complete a Self Assessment tax return, unless you serve as a director for a not-for-profit organisation without receiving any remuneration. This requirement is in addition to submitting your company accounts and a Self Assessment corporation […]
What happens to your limited company if you ignore HMRC?
What action can HMRC take if I fail to respond? Ignoring HMRC or neglecting to respond to their inquiries regarding your financial matters may result in penalties. HMRC could issue an enforcement notice, notifying you of a scheduled visit from HMRC officers or independent bailiffs. Alternatively, HMRC might issue a statutory demand, and ignoring it […]
What does HMRC Secondary Preferential Status mean for creditors?
As of 1st December 2020, HMRC became a secondary preferential creditor in insolvency processes. Before, they were unsecured creditors and positioned at the bottom of the hierarchy for repayment. Creditors get repaid in a specific order set by insolvency law. This alteration has significant effects on certain creditor groups. Unsecured creditors usually get a small […]
Corporation tax: What happens if you file or pay late?
What are corporation tax late filing penalties? Late filing penalties for corporation tax are imposed when companies fail to submit their Company Tax Return by the official deadline. A fine of £100 is levied by HMRC, even if the filing is just one day overdue. These penalties escalate over time and can harm your company’s […]
What are Employer Financed Retirement Benefits Schemes (EFRBS)?
Understanding EFRBS and the 2019 loan charge Employer Financed Retirement Benefits Schemes (EFRBS) are pension schemes that provide retirement benefits to their members but operate as unregistered schemes. Unlike regulated schemes, such as those that qualify for tax advantages, EFRBS does not allow the limited company to claim corporation tax relief on contributions, and any […]
Understanding the impact of a Personal Liability Notice (PLN)
What is a Personal Liability Notice (PLN)? A Personal Liability Notice, or PLN, is a notification sent by HMRC to an individual, transferring a company’s responsibility for unpaid National Insurance Contributions to the recipient. It’s a significant action, more frequently applied since its introduction in 2009, primarily addressing serial ‘phoenixism.’ Phoenixism involves selling a struggling […]
Understanding IR35, CEST, and the new April 2020 rules
How do the April 2020 rules affect IR35? From April 2021, new rules will impact IR35 legislation, affecting contractors using a Personal Service Company (PSC) and the medium to large businesses in the private sector hiring them. Originally scheduled for April 2020, the implementation was postponed due to the COVID-19 pandemic. These changes shift more […]
Understanding HMRC security bonds for VAT, PAYE, and NI
When will HMRC request a tax deposit or security bond? A security bond is a tax deposit requested by HMRC to cover potential future tax liabilities if your business is at risk of financial difficulties. If you are required to provide a security deposit, you will receive a Notice of Requirement specifying the amount and […]
Tax, HMRC and VAT Help, Advice, and Support for Company Directors
What help is there for companies with HMRC tax debt? Companies struggling to meet their tax obligations with HMRC can find assistance. A key form of support is the Time to Pay (TTP) scheme, allowing businesses with tax debts to negotiate extended deadlines for repayment. This arrangement provides extra time to settle outstanding taxes and […]
Understanding the Difference between Recourse and Non Recourse Invoice Discounting and Financing
Recourse, Non Recourse, and Liability for Debt When considering invoice finance as a borrowing option for your business, one of the initial choices is deciding between factoring and discounting. Factoring involves surrendering control of your sales ledger to the lender, where outstanding debts are sold to the factoring company who manages customer payments. Invoice discounting, […]