Appeal corporation tax penalty for dormant company

I was sent a letter stating I have not filed tax returns for a company I have not used

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I have been a letter regarding a Limited by guarentee company I have registered but never traded with, for failing to deliver corporation tax returns. I never recieved a reminder though.

I called them up and they said that filing confirmation statements with companies house is not enough and that HMRC filings are different. (I should add I was fined for late submission to Companies House too who I told over the phone the company is dormant, yet doesnt seem to reflect that on their website)

I explained the company was dormant and always has been, but they said tax returns still need to be filed.

Although, another LTD by guarentee company I had registered on the same day as the one that has been fined, has never recieved a document asking for tax returns nor have I ever been informed I am being fined. 

My question is, how can I avoid paying the fine for a company that never traded? and as I am still expected to file tax returns, how do I do that, as apparantly companies house submission is not enough. I should point out I want to keep the company name.

 

On a side note, I have another LTD by shares company that I wish to dissolve, never traded but I did put some money in to pay some business costs, and withdrew whatever was left back to my account, maybe a total of £200 worth of transactions. I understand it falls under micro entity but I am not sure how I go about shutting it down and informing HMRC before they try to fine me for unpaid taxes!

Replies (13)

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RLI
By lionofludesch
26th Nov 2018 21:40

Well, if you've no need for the company you can have it struck from the register. Fill in form DS01. End of story.

Whilst the company is not trading, you need to do three things.

1. File the confirmation statement every year, usually on the anniversary of incorporation but not necessarily so.

2. File accounts at Companies House within nine months of the company's ARD.

3. Either - file a Corporation Tax Return showing profits of nil - or, agree with HMRC that they don't want a return because you're not trading.

You need to up your knowledge of the obligations of directors (plenty of stuff on the Companies House website) or get yourself an accountant. I'm afraid you've been very naive.

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Replying to lionofludesch:
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By mthakur
26th Nov 2018 21:43

I have been extremely naive, everyone kept telling me its all so straight forward, I bought into it thinking I only need to deal with Companies House.

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Replying to mthakur:
RLI
By lionofludesch
26th Nov 2018 22:29

You didn't even do that.

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the sea otter
By memyself-eye
27th Nov 2018 11:56

and it's guarAntee....

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By carnmores
27th Nov 2018 13:32

appeal the fine as the company has not traded they will probably waive

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By Maslins
27th Nov 2018 17:15

Sorry mthakur but your post demonstrates to me that it's too cheap and easy to incorporate a company these days. Sounds like you've incorporated at least 3 companies, none of which have really done anything, and all of which you're now in a muddle with.

My advice, send off a few DS01s, and stop incorporating companies.

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By Simon 75
29th Sep 2021 19:17

Im living in Sweden and have a ltd company in UK which for the moment is dormant.
i received a corporation tax declaration notice , i filed Accounts for a dormant company with companies house.
I then received scanned letter from my London directors address service, a penalty notice of £100.
I have not traded yet. i tried to log onto gov.uk/file-your-company......
but was informed im not registered for corporation tax.

what should I do? I can pay the penalty but I can't declare any tax. difficult to get to UK as I'm in Sweden with covid and all that.

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Replying to Simon 75:
RLI
By lionofludesch
29th Sep 2021 19:27

Simon 75 wrote:

Im living in Sweden ...


I expect you know DJKL.

You need to file at both Companies House and HMRC. However, given that the company was not trading, I would expect you to have no trouble in successfully appealing against the penalty.

Not registered for Corporation Tax? Seems unlikely. If you weren't registered, you wouldn't have got a penalty. Your CT reference will be on the penalty notice.

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Replying to lionofludesch:
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By Simon 75
29th Sep 2021 19:30

DJKL? I have no idea what that is.

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Replying to Simon 75:
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By Simon 75
29th Sep 2021 19:38

when i try to log onto the HMRC website gateway it says im not registered for corporation tax and not allowed to use the service

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Replying to Simon 75:
RLI
By lionofludesch
29th Sep 2021 21:24

Simon 75 wrote:

when i try to log onto the HMRC website gateway it says im not registered for corporation tax and not allowed to use the service

You've not added your company corporation tax reference to the company's Government Gateway.

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Replying to lionofludesch:
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By Simon 75
29th Sep 2021 19:59

I have no idea how to appeal the penalty, if I pay it, and strike off the company will I still have to retrospectively do the zero corporation tax declaration ?(for the periods I'm been fined for late submission)

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Replying to Simon 75:
RLI
By lionofludesch
29th Sep 2021 21:29

Simon 75 wrote:

I have no idea how to appeal the penalty....

Write a letter to the office which sent it.

Pay it if you want, but don't assume that that will be the end of the matter. More penalties will follow until you either file a return or agree with HMRC that one is not required.

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