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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); 
  • 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?
Successful ThorntonRones Case Study

A director had an overdrawn loan account of £80,000 and was without funds in the Company to settle the S.455 tax. ThorntonRones assisted by placing the Company into insolvent liquidation and arranged for the sale of the business at full value to a new company (a goodwill payment of £3,000 – independently professionally valued). 
Post appointment, the Liquidator liaised between the director and the creditors and within 90 days a two year payment plan was commenced at an affordable fixed monthly amount.  This was in full and final settlement of his indebtedness.
As Liquidators or Administrators we are experts in negotiating acceptable settlements for both Directors and creditors to achieve the best commercial outcome for all parties.   
Other alternatives we can also discuss include remortgaging personal assets, CVAs, direct negotiation with HMRC, etc.
If you have clients facing such circumstances, please be reminded that we offer free, no obligation consultations to you and your clients so they can be advised of their options to enable  informed decisions in their best interests.
ThorntonRones  -  Companies, Directors and your Insolvency Options
ThorntonRones Video: Companies, Directors and your Insolvency Options
"ThorntonRones are suitably professional but appropriately informal where necessary."
D. Flood, Rowland Hall Chartered Certified Accountants
ThorntonRones – we put the solve into insolvency

ThorntonRones is a specialist insolvency practice experienced in advising on both corporate and personal scenarios.  The principal of ThorntonRones, Richard Rones, is a Licensed Insolvency Practitioner, a Fellow of R3 and a Fellow of the ICAEW. 

Richard has extensive experience in the SME market that includes trading as ThorntonRones Insolvency Practitioners since 1999. He and his staff fully understand the difficult pressures faced by anyone running their own business and relish the opportunity to be of assistance.

We look forward to taking care of you.
Copyright © 2017 ThorntonRones Ltd, All rights reserved.

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