Husbands ltd company ceased trading after 7 months. Outstanding tax bill. Need advice

Hi my husband started up a ltd company and had me as the second director as is needs two. After 7 months due to lots of mix ups and mistakes it ceased trading. However he had told me he was paying the tax but we get a letter a final demand. Its for 50k. We have children and im in college. There are no company assets to sell apart from tools. We cant get any social welfare im told as we owe the revenue. Hate even saying we because id never let a debt go that far. Im sick with worry. He is now unmotivated to work and we have no money or income at all. Keep getting small family loans but im tired of this. I dont know what to do. A family member has being liasing with the accountant on my husband's behalf. I need to get money but cannot claim benefits. None of this is my fault. He has been mildly depressed at the business not working out. Hes a brilliant worker but not much use sitting at home. Any advice? Would love my name off the company but he got upset when i brought it up.

Hi Helpme... you should change the "subject" of your thread to be more specific to what the thread is about.

You and your husband need to take a step back and break down the full extent of where you both are, in relation to the taxes outstanding and also trying to get money back into the household. I know you are saying that he is very upset / mildly depressed etc, but him, hiding away from the issue, is not going to make it disappear. Sooner he does that, then the better in the long run.

You will get some excellent advice on this forum, but best to change the title so as to grab people's attention.

Thank you. Its very difficult there are three children. We own our home outright so that is one big blessing.

Unless he's made a shedload of money (which sounds unlikely) he shouldn't be getting tax bills for €50k or anything like it. I assume some or all of the sums involved are Revenue estimates raised as returns weren't filed.

Get his accountant to prepare and file any outstanding returns and then to cease the company's tax registrations from the date of cessation of trading. This should get rid of the estimates.

Check the company's Companies Office CRO.ie record asap to ensure annual returns are filed on time.

Helpme said:

We own our home outright so that is one big blessing.

Click to expand...

I certainly would not like to see the taxpayer giving you social welfare when you own your home outright and you are directors of a company which did not pay its taxes. Or at best, the social welfare should be treated as a loan against the security of your home.

Brendan

Brendan Burgess said:

I certainly would not like to see the taxpayer giving you social welfare when you own your home outright and you are directors of a company which did not pay its taxes. Or at best, the social welfare should be treated as a loan against the security of your home.

Brendan

Click to expand...

Social Welfare does not work that way. A persons own home is not included in the means test.

Regarding Social Welfare have you gone in and signed on ? Who advised you that you cannot get it ? He needs to at least go in and sign on. If you have no means you will be assessed and I believe the house will not be part of it. Can you make an appointment with your local citizens advice office and explain the story. They will give you goos advice.

Helpme said:

We cant get any social welfare im told as we owe the revenue.

Click to expand...

This is not correct. Revenue debt is not relevant to Social Welfare. You do both need to show that the company has ceased trading and you are not in receipt of any income.

Has your husband actually applied for Jobseekers Allowance? He needs to do this and get a written refusal and advice as to what documents he needs to get to show that he actually qualifies.

Waver said:

A persons own home is not included in the means test.

Click to expand...

Hi Waver. I am making the point that it should be. Especially where the home owners have caused a loss of €50k to the taxpayer.

Brendan

Brendan Burgess said:

Especially where the home owners have caused a loss of €50k to the taxpayer.

Brendan

Click to expand...

Hi Brendan

There is no evidence whatsoever that there is any such loss here.

T McGibney said:

Unless he's made a shedload of money (which sounds unlikely) he shouldn't be getting tax bills for €50k or anything like it. I assume some or all of the sums involved are Revenue estimates raised as returns weren't filed.

Click to expand...

In Brendan's defence, OP mentioned the 50k bill, and he said his opinion assuming it was accurate.
Its not like we will ask for proof that they own the house or indeed have three children.

How could there be a tax bill this high without profits though?
VAT, employee PRSI etc?

ant dee said:

... assuming it was accurate...

Click to expand...

The OP's post says

Helpme said:

After 7 months due to lots of mix ups and mistakes it ceased trading.

Click to expand...

Hard to imagine enough activity there to generate €50k in tax liabilities.

How could there be a tax bill this high without profits though?

Click to expand...

T McGibney said:

I assume some or all of the sums involved are Revenue estimates raised as returns weren't filed.

Click to expand...

Such estimates are routinely raised when returns are late. They generally & deliberately demand out-of-the-question amounts.

Hi yes they are estimations only so it could be a good bit lower. I thought we wouldn't be entitled to any assistance from social welfare. He didnt make a fortune far from it. Paid too many to do too little and undercharged. Came out way worse off. Took too much on at the beginning. Big lesson learned. Its all about damage control at this stage and finding money to feed ourselves

It sound like you should wind up the company and get a professional to find out what it owes in tax ASAP. Tell your husband to get his act together and go find a job. If he doesn’t you might have to. In the meanwhile formally find out if you can get social welfare.