Will liquidating my company mean it doesn’t have to pay tax?

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If your company is insolvent and is placed into Liquidation (or Administration) then, along with the other debts of the company, any amount owed to HMRC for PAYE/NIC, VAT, Corporation Tax etc will also be included.

Am I responsible for paying it personally as a director?

Those carrying out the liquidation will deal with HMRC as part of the process and will ultimately advise them as to whether they will receive a distribution from the insolvent estate. To dispel a myth, when a company is placed into a formal insolvency process the directors are not automatically personally responsible for company HMRC liability. Whilst HMRC retains powers of investigation following the liquidation or administration of a company this is generally reserved for cases where there is believed to be fraudulent or irregular activities by the company and its directors and not utilised otherwise. Otherwise, the company HMRC liability will be included within the estate with no responsibility placed upon the directors personally in any way whatsoever. If you have any concerns regarding the liquidation process, then feel free to get in touch with The Insolvency Experts today. Our experts have extensive experience helping businesses that are facing debt problems, including voluntary company liquidation.

Speak to The Insolvency Experts today

For more information on liquidation, administration and comprehensive business debt advice, please get in touch with one of our expert Insolvency Practitioners today. We understand that facing financial difficulties can be a stressful experience and work to ease your burden as director. Whatever size your business, speak to a member of The Insolvency Experts today by contacting us online. Alternatively, call us directly on 0300 303 8284.