Small Consultancy Businesses

During the past 18 months we have handled the winding up of several small consultancy businesses primarily in the IT sector.

They have been set up by it’s accountant in a tax efficient way for it’s one man band director to reduce their tax liability.

Unfortunately, the owner is not often being made aware of the perils of withdrawing monies as and when the contract ends whilst being in the position of not holding sufficient reserves to meet it’s corporate tax debts.

The ramifications of this can be disastrous for the director/shareholder who unknowingly has continued to withdraw funds through the directors loan/dividend scheme.

Should the office holder be culpable of this action they will be required to pay the funds back to any appointed liquidator under appropriate rules of the Insolvency Act.

Should you want further information regarding the above contact Marshall Peters and speak to one of their advisers who will for free answer in confidence any query you may have.