Liquidation

We believe that our Limited company is to be shortly forced into involuntary liquidation by the Inland Revenue as a result of the company's inability to settle an IR35 'deemed' payment.

The IR will be/is the only creditor (as this situation has been created solely by them) - company assets will only realise a tiny portion of the 'deemed' amount, what will they do when they discover this fact? (we have been telling them this and have documentary evidence to prove it, for over 2.5 years)

Taking it that the company is liquidated and that is declared bankrupt, would we be deemed as culpable?

Would/could they come after the individual directors for the amount owing? (I should point out that salaries at the time were 'market rate' and any dividends taken were very, very small)

I can't see how we could be deemed culpable - after all, our method of business has remained the same as it was prior to IR35 and it was not us who 'moved the goalposts'.

If we're not culpable, would we qualify under the Government's new rules on helping bankrupted company directors back into business??

Anyone any view thoughts

Editor's note: 'Joe Smith's' experience with the Revenue and its subsequent consequences was reported in UKTECH here: IR35: An 'easy target' victim

--

Joe Smith