Don't HMRC collect CT anymore?

Don't HMRC collect CT anymore?

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Last year I prepared some accounts for a limited company client which the director and sole shareholder approved and abbreviated accounts were filed (first period after incorporation).The DLA was overdrawn but there were insufficient post-tax profits to clear with dividends within 9 months so there was a s455 charge. I prepared CT600s (long period of account) but the director never approved them so they were never sent to HMRC.

The client never filed last year's annual return and CH recently struck off the company with no objection from HMRC. It would have been blindingly obvious from the abbreviated accounts that the company had been trading and there was CT to pay. Ex-client must be delighted to have got away with paying no tax after stripping the company bare. There was a maxed-out company credit card so it is just possible but highly unlikely that the bank may apply for restoration.

Is it any wonder that so many company directors deliberately fail to file anything confident that neither HMRC nor CH will really give a stuff? Why don't HMRC issue some CT determinations then send in the bailiffs? As a lot of such companies have their registered office at the director's home, it might scare some of them into fulfilling their responsibilities. As a matter of interest, how many practitioners have recently had client directors prosecuted by CH for failure to file accounts etc.? A few more threatened and actual prosecutions might encourage the minority to act lawfully.

Perhaps the bloke in the pub is right when he says to his mate "don't bother with accounts and paying an accountant, nothing will happen"! Why do we bother?

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By nogammonsinanundoubledgame
01st Apr 2015 06:21

It is becomming more common these days ...

... for HMRC to require a security deposit against future tax liabilities of the phoenix company.  And they can be quite eye-watering.  But that is more likely where a liability has been returned but unpaid. Would be interesting to know if they are picking up cases like this.

With kind regards

Clint Westwood

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David Winch
By David Winch
01st Apr 2015 10:20

See this

See THIS THREAD

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