Our client who is a limited company has finished his first year of trading, the company year-end accounts are yet to be filed:
- The company turnover is £90,000 approx and the income was not taxed at source.
- The company had registered for VAT but no returns have been submitted (3 VAT Returns are overdue).
- The director has drawn all the monies out of the company account leaving the Director’s account overdrawn.
- The client will still be largely overdrawn after paying Salary and dividends from the company. The amount of dividend will also lead to a Self Assessment liability which he has no intention of paying.
- He has also been paying subcontractors without any CIS payroll set up. He has made no CIS deductions before paying his subcontractors.
The director has now approached us advising that he has ceased to trade and is unable to pay any of his liabilities (VAT, CIS tax, Corporation Tax, Section 455). He would like to just allow the company to be struck off. To date he has not attempted to contact any statutory bodies including Official Receivers.
We believe the client has intentionally allowed the company to be run down. As the Client’s accountants what are our obligations? Should we file a Money Laundering Report and report him to SOCA?
Would appreciate your input