Our business has been going down hill for the last while. We have not filed VAT for about 18 months to 2 years and have not filed last years accounts because we havent been keeping things up to date. We cannot afford an account to do accounts and bring things up to date. We have really been waiting for HMRC to take us to court and bankrupt us. We have stopped trading in this name in the last month and have been trying to bring the business bank account to zero and close it - we have an overdraft on the account of £3000 (guaranteed to us) which we were hoping to pay off bit by bit before closing so we weren't forced to trying to pay it all at once.
Now due to non filing of accounts Companies house are saying that we may be referred to the public prosecution service if we do not contact them - they refer to an earlier letter which we do not remember receiving. We will contact them but what do we say?
If we say we are insolvent will they then ask HMRC to bankrupt us? and/or will they still try to prosecute us?
Will the prosecution be against my husband as an individual? I know there is a potential fine - but what else is the impact of this in terms of having a record etc?
Can we avoid prosecution at this or any later stage by trying to scrape together money to file something and how accurate would these records need to be - in the past records we have filed have always been under the "small company exemption" (think that is what it is called)
We did ask for some advice before from an insolvency practitioner but they had said they thought we would be taken for bankruptcy by HMRC really quickly (this was about Feb last year)
Also in trouble for not filing my husbands tax return for similar reason - no accounts?
Can anyone advise? If HMRC make us bankrupt can we still go to court for non filing of accounts or can we ask for time to file to avoid this - even after company is bankrupt?
It is a limited company - my husband is now the only director as for various reasons I removed myself 3 months ago.
We are based in Northern Ireland
As well as owing about 30k in VAT we owe one company 1k and have about 1k owing in corporation tax from the last year we filed accounts.
Also need to check filing dates as it may now be two years accounts we owe?
My husband is now working as an employee for someone else. (since Feb)