hmrc to reinstate company

hmrc to reinstate company

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A company was closed via 652a, and was struck off in May 2011. Due to a criminal investigation into accountant HMRC requested accounts be revised. Company tax due was calculated at about £14000. HMRC have given options to reinstate company or sign contractual agreement that directors become personally liable for tax. the company is no longer trading, had no assets when struck off.

If choose to reinstate company,could they then make director personally liable if proceedings were made to liquidate company?

Any ideas on this would be welcome.

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By girlofwight
18th Apr 2012 21:44

Depends
I think it's going to depend on various factors.

First is the tax Corproation Tax or PAYE?

If its PAYE then the starting point is that an employee can only be liable if they knowingly received remuneration that wasn't taxed. Alternatively if there were offences like fraudulent or wrongful trading then personal liability maybe in play.

If its Corproation Tax then the concern would be issues around wrongful/fraudulent trading.

On both the above, if the directors acted in good faith and were mislead by an accountant acting criminally, then I would have thought there was a good chance of avoiding any personal liability.

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By johnjenkins
19th Apr 2012 12:40

I think the most

important thing not to do is to sign any agreement taking personal responsibilty for any tax due.

Any criminal activity the Accountant took part in is not the Directors responsibility.

I think HMRC are "trying it on". I do not see any company law that would enable them to force a re-instatement. Don't forget HMRC are no longer preferential creditors so it might be that the company owed other debts.

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