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Where Taxpayers and Advisers Meet

Expat Director's liability for tax debt of ltd. company without assets

dawnchorus
Posts:2
Joined:Thu Jun 01, 2017 5:15 pm
Expat Director's liability for tax debt of ltd. company without assets

Postby dawnchorus » Thu Jun 01, 2017 5:19 pm

Hello all.

I'm new here, I apologise if this is not in the right area of the forum!

I am a sole trader and run a limited company of which I am the sole director. Two years ago I emigrated to the USA and this is now my home.

I have not traded in the UK since emigrating. However I have had to keep filing because five years ago HMRC opened an investigation into my personal and company tax affairs as a result of bad practice by my former accountant. HMRC acknowledge that it was not my fault, though they do accuse me of carelessness.

Finally, this week, I received an offer letter from HMRC detailing their findings and calculations of tax owed and penalties and interest for myself and the company.

I have enough money to pay my personal liability but not that of the company. Therefore I am considering liquidating the company.

The company has no assets, but I’m concerned that I can be made personally liable.

What are my options?

I’d be grateful for any advice.

DavidTreitel
Posts:271
Joined:Thu Aug 16, 2012 4:31 pm

Re: Expat Director's liability for tax debt of ltd. company without assets

Postby DavidTreitel » Sat Jun 03, 2017 7:47 am

How is the entity reported in the US? Are you filing Forms 5471 each year or have you made a check the box election?

dawnchorus
Posts:2
Joined:Thu Jun 01, 2017 5:15 pm

Re: Expat Director's liability for tax debt of ltd. company without assets

Postby dawnchorus » Sat Jun 03, 2017 4:39 pm

Hi David,
Thanks for your response.
I did not know about form 5471. I want to close the company as soon as the matter with HMRC has been resolved, and have not traded in the UK since I've been in the US. Do you know if I need to report the entity, considering the context?


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