ThorntonRones have successfully helped with this problem.
There are two issues:
- the S.455 tax
(currently 25% but increasing to 32.5% for sums post 6 April 2016);
and
- the balance itself!
As you know, HMRC will expect payment in full of the S.455 tax and currently, in most cases, are not allowing extended payment arrangements.
What if:
- the client Company hasn’t got the cash to hand to pay the S.455 tax; and/or
- the director has not got the cash to settle the overdrawn balance?
If bankruptcy is not an option for the director personally, maybe he has equity in property or will be adversely affected financially (or mentally), then what is the alternative?
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