CT600 for first year UK company trading abroad

CT600 for first year UK company trading abroad

Didn't find your answer?

Hi, 

I am filling in the CT600 form for my company which has now been wound up (hence doing the paper CT600). The company was offering online cashback service (similar to Top Cashback or Quidco). The services were offered in european countries (outside the UK).

This is the  first year's tax return with the following figures:

Turnover: 110 EUR

Expenses: 250 EUR

I have two questions:

  1. What do I enter in the Income section if I made a loss (which I do not want to claim back). Do I enter a negative profit number (loss)? What is the catch in this situation?
  2. the CT600 guide mentions following for the Income Section: 

Income

3 Trading and professional profits This box is for trade profits in Part 3 Corporation Tax Act (CTA) 2009, less any income arising from trades carried on wholly outside the UK (previously assessed under Case V). 

All the activity has been done abroad. The bank account is set up in the bank in Austria and all the commissions were received in Euros. How do I deal with this on the CT600? 

I would really appreciate if someone could help to clarify this please.

I know I should hire an accountant, but as you can see, the business cannot really afford one.

Any help would be greatly appreciated!

Thank you!

Replies (13)

Please login or register to join the discussion.

James Reeves
By James Reeves
27th Apr 2015 14:10

Waste of time

If your company has been wound up, you are wasting your time doing a CT600. It will not be accepted by HMRC as your company does not exist.

Thanks (0)
avatar
By Felippe
27th Apr 2015 14:30

two tax returns

Hi James and thank you for the information.

I spoke with HMRC and they told me to download CT600 (paper version) as I would not be able to do it online. 

This tax return is for the first period for which I received Notice from HMRC before the company was wound up. 

Will they still not accept it in this case? If they don't how should I do the return?

Thank you!

Thanks (0)
By johngroganjga
27th Apr 2015 14:34

Entirely agree with the above - a complete waste of time, as was the preparation of the accounts that you must be intending to attach to the return.

Thanks (0)
avatar
By Felippe
27th Apr 2015 14:36

What do you suggest?

What would your advice for my situation then? HMRC told me to do it after I wound up the company. Are they incorrect?

Thanks (0)
By johngroganjga
27th Apr 2015 14:42

Do you really mean wound up? i.e. struck off the register at Companies House.  Or do you perhaps mean that the company had just ceased trading, but still exists?

Thanks (0)
avatar
By Felippe
27th Apr 2015 14:52

Company has been struck off

The company has been struck off from the registrar.

The company was Registered in January 2013 and struck off in March 2015.

The first company tax return requested by HMRC is for period 30th April 2013 to 29th April 2014. This is what I am preparing now as I have been told by HMRC to do it.

Am I wasting my time?

 

Thanks (0)
avatar
By Felippe
27th Apr 2015 14:53

UPDATE!

...I just called HMRC again and have been told that because the company does not exist any more, I do not need to send any information as both James and John suggested.

 

Now, This is rather upsetting (although relieving) as I was told something very different last week by another person at HMRC!

Thanks (0)
avatar
By User deleted
27th Apr 2015 14:56

Just goes to prove ...

... that you should never believe anything that HMRC tell you over the telephone. The VAT guys are the worst.

Thanks (0)
Replying to norstar:
avatar
By Felippe
27th Apr 2015 14:59

Should I believe

...the latest information than?

Thanks (0)
James Reeves
By James Reeves
27th Apr 2015 15:17

Yes.

Yes believe the latest info because you read it here as well as being told by HMRC.

Here's the thing: the company has been struck off the register of companies. It no longer exists. It is an ex-company. It can no longer have any impact on the world. It cannot file tax returns or have a bank account or own a car or have baby companies. It has ceased to be.

Thanks (0)
avatar
By Felippe
27th Apr 2015 15:26

James

Thank you for the response. This makes sense!

 

However I can think of one reason why they might want it.

 

What if during the two years the company existed, the company made millions of pounds profit and would be owing a lot of tax? However the company never filed a tax return and hence HMRC would not know that. How come HMRC is not interested anymore? If they found out that tax is owed they could reopen the company, and demand the tax + prosecute directors, right?

 

 

Thanks (0)
James Reeves
By James Reeves
27th Apr 2015 15:31

In theory yes

When the company closed, all its assets became bona vacantia (they belong to the crown). If the company was likely to have owed a lot of money, HMRC would have had the power to object to the strike off.

The company could in theory be re-opened, or the (former) directors prosecuted. But it rarely happens.

It is a fairly well discussed topic (on this forum and elsewhere) that companies regularly pop up, make some money (or not) then close down again without troubling the tax authorities. There's even a name for closing a company down in this way to avoid fines, creditors etc. It's called the sponge-bob plan.

My advice is to forget about the company and move on with your life...

 

Thanks (0)
Replying to Wanderer:
avatar
By Felippe
27th Apr 2015 15:43

Thank you!

What a great forum. You saved me a lot of hassle!

 

Thank you very much for your time and advice. I really appreciate it!!!!!

 

All the Best!

Thanks (0)