Company Strike Off

Compulsory Striking Off

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Company ceases trading with massive unrelieved losses.Only creditor is HMRC but not a large sum -  just VAT and even less in PAYE.  Fails to file Annual accounts following cessation. Fails to file Confirmation Statement and CH proceeds to Compulsorily Strike off. Objection raised (presumably HMRC) and CH suspends the action.

What happens now?

 

Replies (9)

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By Paul Crowley
21st Jan 2021 21:30

Not much
Eventually Co house will loose patience with HMRC
HMRC must show they are taking posative action to collect debt.

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Stepurhan
By stepurhan
22nd Jan 2021 07:43

If you want to try to speed things up, you could write to HMRC and tell them that, whilst tax is due, there is nothing to pay them with. No guarantee they will take any notice though.

Out of curiosity. If the only creditor is a "small" amount to HMRC, how were the "massive" unrelieved losses funded?

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By qhas
22nd Jan 2021 21:19

Funded via Director’s Loans

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Replying to qhas:
Stepurhan
By stepurhan
23rd Jan 2021 08:11

I guessed as much. Of course, that does mean that HMRC is not the only creditor, which is why I asked.

Director/shareholders are legally separate from their companies, even if they are the same for practical purposes. Educating directors about that distinction, though usually in the other direction, is a big part of accountancy.

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By qhas
22nd Jan 2021 21:21

The relatively small amount owing to HMRC is VAT.

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Replying to qhas:
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By Matrix
22nd Jan 2021 21:48

But HMRC CT don’t know that if you have not filed the final set of accounts/CT600 or written to let them know that no tax is due.

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By qhas
22nd Jan 2021 22:02

Correct. Cessation accounts not filed. But ye immediately preceding cessation were filed showing massive unrelieved loss.

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Flag of the Soviet Union
By thevaliant
22nd Jan 2021 22:55

Paul is right.

Effectively, the company will still be struck off, but it may take three years rather than three months.

But usually HMRC are all [***] and wind and object to strike off yet do nothing else. Eventually Companies House ask HMRC, "Are you going to do anything then, like appoint a liquidator?". HMRC will ignore them so Companies House will strike them off anyway.

Time frames are longer, much longer, but the result is the same.

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By whitevanman
23rd Jan 2021 10:44

I don't know whether the foregoing comments are based on recent experiences but I understood that, about 4/5 years ago (possibly more) the position changed and even if HMRC filed an objection, CH would proceed with striking-off unless the objection was confirmed (every 3 months or so) and for that to happen, someone had to be actively "working" an "enquiry". I don't say they were always doing anything! It is just that someone outside the "routine" teams was making a decision.

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