Small Business Owner: accounts for last year are showing a PAYE difference of + €20k

[WEAQ]

I own a small business that over the years has been quite successful but like most other companies have been hit hard by the recession.

Our accounts for last year are showing a PAYE difference of + €20,000. This will hit revenue in about 2/3 weeks and I want to know best way to approach them about payment.

Has anyone experience of same. Otherwise I am tax compliant and have never been in this situation before. I have often been in credit at year end.

This year started badly (let some staff go) but has improved and have some good orders on the books. Accountant says don't panic, but I would like to be upfront with revenue from start, -nmaybe payment plan?

Anything would help.

 

[Graham_07]

Re: Paye concerns

I assume you mean your P35 has a balance due of some €20,000. If you do nothing, in a few weeks you will get a demand, after that a letter from Debt Management in Revenue Sarsfield House Limerick. They are amenable to payment plans but interest may well apply. The shorter the payment the better. I'd contact Revenue as soon as the liaiblity is established. Your accountant may be able to handle the deal for you.

 

[z107]

Re: Paye concerns

What happens if this money isn't paid?
Can the directors ever be personally liable?

 

[Graham_07]

Re: Paye concerns

What happens if this money isn't paid?
Can the directors ever be personally liable?

If the money is not paid, then ultimately Revenue will probably send the debt to the County/city Sheriff. They then add their fees and if no payment will ultimately attempt seizure of goods in lieu.

The directors may become liable personally if proven to be :-
- trading while insolvent,
- trading fraudulently or recklessly.

 

[WEAQ]

Re: Paye concerns

thanks graham ,ihave every intention to pay,worked to long to let this hang over me.I will contact accountant and get his view on your response.

 

[clued-in]

Re: Paye concerns

I would suggest you contact Revenue and ask to pay the money by way of installment arrangement. Revenue will allow for the amount to be paid over 12 months - but will ask for 25% up-front. Suggest you talk to them ASAP or get your accountant to talk to them.

 

[Liquidator]

Re: Paye concerns

The best way to approach the revenue is to be as informed as possible and use the correct terminology etc. When insolvency practitioners are involved in Corporate recovery scinarios, they engineer what is called a [broken link removed] . This is basically a payment scheme and is based on the idea that if a company goes into liquidation they are unlikely to get anything.

When approaching the rev you have to be careful as if your company has significant assets they will petition for liquidation and as a secure creditor they will be the first to recieve any dividend. Therefore it is important to know your figures and approach them with a financially viable option.

 

[jack2009]

Re: Paye concerns

The best way to approach the revenue is to be as informed as possible and use the correct terminology etc. When insolvency practitioners are involved in Corporate recovery scinarios, they engineer what is called a [broken link removed] . .

I do not agree, in my experience being open and honest with the Revenue will go a long way. However, be very careful about the temptation to use amounts due to the Revenue Commissioners as working capital. Also, Revenue will not send in a liquidator if they are informed about the company's situation and also if previous commitments are honoured.

Your link is inappropriate, non applicable and somewhat missleading.

 

[Graham_07]

Re: Paye concerns

When insolvency practitioners are involved in Corporate recovery scinarios, they engineer what is called a [broken link removed] .

Given your username and the several posts in different threads linking to that site to which the link goes, you might indicate whether you have any interest or connection with said business. Thanks.

 

[Graham_07]

Re: Small Business Owner: accounts for last year are showing a PAYE difference of + €

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