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Late filing penalties – closing down a company

Late filing penalties – closing down a company

A client trading through a ltd company ceased working because of a mental breakdown but seems unable to obtain a medical certificate. Company accounts were submitted very late, resulting in penalties which neither the company nor she can pay. No dividends were paid, the company owes her money.

She has now decided not to resume trading through this company and wishes to close it down. Presumably the penalties are the company liability and not hers? Please advise.

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12th May 2012 13:08

File a DS01 with companies house

Have the company struck off by registering form DS01 with companies house and paying the fee of £10 by cheque or postal order.

http://www.companieshouse.gov.uk/forms/generalForms/DS01_striking_off_application_by_a_company.pdf

HMRC have (theoretically) the ability to block a strike-off or reinstate a company if there are outstanding unpaid taxes, penalties or interest, however in the circumstances you describe, this appears unlikely and in any case would have to amount to many thousands of pounds before it became cost justified for HMRC to enforce.

Once the strike-off is concluded, any remaining penalties die with the company.

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13th May 2012 00:09

Why? Oh, why?

... were accounts submitted very late, thus incurring penalties?  It would have been better not to submit and then, apply for the company to be struck off.

However, I agree with frustrated about the practical realities.

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SteLacca
13th May 2012 10:37

I have the same concern as Euan

Euan MacLennan wrote:
Why? Oh, why? were accounts submitted very late, thus incurring penalties?  It would have been better not to submit and then, apply for the company to be struck off.

What was the reason behind the delay in filing?

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By DMGbus
14th May 2012 13:41

Statutory Sick Pay (SSP)

If the director actually was unable to work for health reasons then her employer (the Ltd Co) then (assuming salary at appropriate level was being paid) would have paid her SSP and reclaimed this from PAYE/NIC payments due (or obtained funding payment from HMRC).

This is what happens normally (recently had a client Ltd Co receive approx £1,200 from HMRC for this reason).

I am unaware of mental health issues being discriminated against in the context of SSP.

Maybe the SSP recoverable in the case stated is too insignificant?   Maybe not enought salary so no SSP possible?

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