Can corporation tax be added into an iva?

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mtc

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Post by mtc » Mon Nov 10, 2008 10:25 pm
iam self employed and have a small ltd company. Can corporation tax be added into an iva.
 
 

MelanieGiles

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Post by MelanieGiles » Mon Nov 10, 2008 11:18 pm
Hi mtc and welcome to the forum

No - corporation tax is the liability of the company, which is a separate legal entity to yourself.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Michael Peoples

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Post by Michael Peoples » Tue Nov 11, 2008 2:12 pm
Hi mtc.

As Melanie says corporation tax is the liability of the company and as such is not your debt. However, it is not unusual for directors of small companies to incur substantial personal debts when the company was incorporated or hit financial trouble.

If this is the case an IVA may still be a suitable option for you but it would be necessary to check the solvency and viability of the company. If the company is to continue to trade your IVA payments would be predicated on the salary and dividends that you are paid by the company. If the company is to fail then you would need to provide evidence of earnings or projected profits from self employment to propose a viable IVA.

Finally if there are no personal debts, it may be possible to propose a Company Voluntary Arrangement[CVA]to allow the company to trade on and pay it's debts. You should certainly speak to an insolvency practioner for advice.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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