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Strike off or complete accounts?

Hi.

Sorry if this has been covered before, I tried searching the archive but couldn't find anything specifically covering what I need to know:

I have been approached by a lady who, due to ill health is having to cease her Ltd Company trading.  The Accounts were due 30/11 but have not been completed yet.  She has written to Cos House explaining she is very ill and asking for an extension, but not yet recd a reply.

As I understand it, if no accounts are filed Cos House will apply for the company to be struck-off, and assuming any Creditors do not object this will go through in due course. Also as the company has no doubt made a loss HMRC will not persue any accounts or corp tax returns.

Is this correct, and are there any negative results from taking this route?

Many thanks.

Darren

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By Tosie
05th Jan 2012 14:08

Circulate creditors

Advise interested parties of situation and then apply for company to be struck off.

It is the annual return rather than accounts that companies house act on

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05th Jan 2012 14:34

No it is not correct

... although it may be expedient!

When you say "The Accounts were due 30/11", do you mean due to be filed or was that the accounting date?  If they were 28 February accounts and the lady did not apply for an extension until after 30 November, it will not be granted (and if they were 30 November accounts, it will also not be granted because there are still 8 months to go).

If there is a history of losses, with substantial losses brought forward, and you write nicely to the CT district, HMRC may well agree to dispense with any further CT returns and to not object to any proposed dissolution of the company.  Otherwise, you will have to prepare accounts and file a CT return to satisfy HMRC that there is no more tax revenue to be had from this company.  If you do end up preparing accounts, do not submit them to Companies House - that will only prompt a substantial late filing penalty.

Although you could then leave it to Companies House to lose patience and initiate the dissolution of the company themselves, it is better to pay the £10 fee and submit form DS01.  In practice, that stops Companies House from pursuing the company or its directors for overdue accounts.

A couple of thoughts:

 - who has been preparing the accounts in the past?

 - how are you so sure that the company has made losses without preparing accounts?

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avatar
13th Mar 2012 15:39

Belated Thanks

Hi

Sorry for the delay in thanking you both for your replies - for some reason Accounting Web failed to let me know about your postings!

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