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Company struck-off

Company struck-off

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I have just found out, that last week, one of my clients has been struck-off by Companies House for failing to complete an Annual Return.

I wasnt instructed to deal with the company secretarial matters, haven't heard from the client for a few months, but am being paid to deal with the payroll which is being done each month. I've had no issues with unpaid fees and have been sending the payroll details to them each month.

Accounts and a tax return are due, the company has been trading but I assume all of this is irrelevant now that the company has been struck-off.

I've never actually had this happen seems totally ridiculous that HMRC are now going to miss out on considerable amounts of tax which would have been due.

I assume I will have to formally cease acting for the company as it no longer exists?

Any advice?

Replies (21)

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By johngroganjga
08th Apr 2014 16:22

I would have thought you would first want to take the client's instructions on whether he wants the company restored.

What is strange by the way is that the company's bank account hasn't been frozen, as it should be as soon as it is struck off.

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Replying to Paul Scholes:
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By happy
08th Apr 2014 17:04

ML issues??

johngroganjga wrote:

I would have thought you would first want to take the client's instructions on whether he wants the company restored.

What is strange by the way is that the company's bank account hasn't been frozen, as it should be as soon as it is struck off.

Thank you not something I've ever dealt with, yet, but I can get that dealt with.

A thought - if he says no does that raise ML issues?

If he doesnt get the company restored he is avoiding CT, VAT and PAYE/NIC which is due.

 

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By johngroganjga
08th Apr 2014 17:08

The other odd thing by the way is that HMRC did not object to the striking off.

Yes.  In the, hopefully unlikely, event that he does not want to have everything sorted out in a proper manner you will have to enquire deeply into his reasons and motives and consider your position in the light of what he says.

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By happy
08th Apr 2014 17:16

Thank you John.

I quite agree very odd that HMRC didnt object. 

Companies House did actually strike the company off extremely quickly, I've had other clients who've had accounts and Annual Returns outstanding for a lot longer than this client.

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By carnmores
08th Apr 2014 17:31

HMRC tend to object only if

 the company owes tax as per submitted returns  if the company has not submitted any accounts then they never seem to object

 

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Euan's picture
By Euan MacLennan
08th Apr 2014 17:41

A cautionary tale

happy wrote:

I wasnt instructed to deal with the company secretarial matters

What are company secretarial matters?  For the vast majority of clients, it is just filing the Annual Return.  We file the Annual Returns for almost all our company clients as an added service to accounts and tax - it takes no more than 10 minutes a year for each client.  We always obtain the company authentication code when taking on (or forming) a new company client and usually set up e-reminders to our e-mail address (and to the client).  However, we record the date of incorporation on our database and our main prompt is a monthly report from the database of the ARs due that month.  Whatever database software you use, it is easy to set up.

The whole process is much easier and less time-consuming than trying to restore even one company to the register, so it is well worth doing for your company clients.

 

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By The Innkeeper
08th Apr 2014 20:59

@euan etc
I agree but we have a disclaimer in our letter of engagement if our address is not the registered office. The reminder from companies house or hmrc is a good additional control

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By Flash Gordon
08th Apr 2014 21:04

Nearly struck off

One of my clients appears to have come close to being struck off (I'm assuming Co House wrote to them but they didn't bother mentioning it to me which is typical) but it was stopped before the accounts were finally filed (late through sheer client idleness and multiple excuses). So I'm guessing HMRC objected. Good job too because there was tax due, and some decent fines for Co House too. Very well deserved. I just wish there was a way of checking online with Co House when fines have been paid...

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By happy
09th Apr 2014 09:53

No more PM's PLEASE

Please dont send me any more PM's offering company restoration services etc.

Any helpful comments please post on here but no more offers of services thank you.

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Stepurhan
By stepurhan
09th Apr 2014 10:31

Reportable PMs?

If you have received a lot of self-promotional PMs, you might want to alert the moderators. Self-promotion is severely frowned upon in public postings, so using PMs instead is probably covered. Dan Izzard is the top man for this.

Back on subject, a checking system is probably wise for the future. I just use a spreadsheet to track due dates for Annual Returns, though your client database may be suitable as Euan said. I use conditional formatting to highlight those needing attention, so not just a list of dates to scour. A gentle reminder to clients who appear to have forgotten the AR will show you are on the ball, which never hurts the client relationship. You now also have a real-life cautionary tale on the subject for those that see it as pointless.

 

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Replying to Wanderer:
By johngroganjga
09th Apr 2014 11:19

Self promotion

stepurhan wrote:

If you have received a lot of self-promotional PMs, you might want to alert the moderators. Self-promotion is severely frowned upon in public postings, so using PMs instead is probably covered. Dan Izzard is the top man for this.

Well said @stepurhan.  Quite apart from self promotion being frowned upon on this site, in this particular area it is misconceived in any event.  The Administrative Restoration process is not a specialist area at all.  Anyone who can read a simple form and fill it in can do it.  It does not require any specialist technical knowledge.

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RLI
By lionofludesch
09th Apr 2014 10:40

Reminder Service

All my company clients are on the Webfiling ereminder service and Companies Direct monitoring.

I get an email reminder, if the client wants one, he can have one too - it's up to him.

It's very useful and the price is right.

Obviously shutting the stable door after the horse has bolted in this case, but ..........

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By marks
10th Apr 2014 01:37

like above

I tend to do annual returns for all limited companies.

Also set up for ereminders for all limited company clients so get an email when the annual return due.

As a back up also have spreadsheet with monthly tasks such as; year ends, VAT returns due, 6 months after year end etc to which have added Annual Return due.  Each month I check the task for the month to make sure all the annual returns due that month have either been submitted or dealt with.  Just did my various checks for March today (which took a couple of hours to do as most of my limited companies have march year ends.)

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By 2156806
25th Apr 2014 07:48

Use the APP
CH provide a free App and you can add all your clients to it - shows at a glance what is overdue and becoming due. If Annual Return is a month overdue I get in touch with client.

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Replying to Wanderer:
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By happy
25th Apr 2014 08:28

CH App

2156806 wrote:
CH provide a free App and you can add all your clients to it - shows at a glance what is overdue and becoming due. If Annual Return is a month overdue I get in touch with client.

Sounds great.

Can you post a link to the App please.

 

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Replying to Wanderer:
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By Mark_NW
25th Apr 2014 11:50

Great app link

2156806 wrote:
CH provide a free App and you can add all your clients to it - shows at a glance what is overdue and becoming due. If Annual Return is a month overdue I get in touch with client.

Thanks for posting the link to this. I actually had the App on my phone but hadn't realised that by adding client companies as favourites you then get a list showing any reminders etc.

Really useful for a quick glance.

Regards
Mark

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By 2156806
25th Apr 2014 09:10

App Link
Here you go

http://www.companieshouse.gov.uk/mobile-app/

Or search in the app store

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Replying to Red Leader:
By Red Leader
25th Apr 2014 11:33

Treasury Solicitor discretion

Something I learned only recently regarding struck off companies which can avoid the need for restoration.

The Treasury Solicitor has discretion to repay the bank balance to the director/shareholder, subject to undertakings. There is a charge of £300 + 5% of the bank balance, and an overall cap on the amount that can be repaid of £3k.

Could be useful for those "whoops" cases where the bank balance has inadvertently been left with some money in it.

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Replying to Red Leader:
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By happy
28th Apr 2014 09:06

THANK YOU

2156806 wrote:
Here you go http://www.companieshouse.gov.uk/mobile-app/ Or search in the app store

Fantastic - thank you very much indeed.

Spent the weekend adding my clients to the App and can see at a glance Annual Returns due.

 

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By carnmores
28th Apr 2014 09:30

i dont think the app works for

windows phones yet , but i have seen it on a colleauges and its a happy app

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By dom232323
28th Apr 2014 11:35

Have you spoken to the client?

 

Theres a good chance they are eligable for administrative restoration

Here is the form - there is a £100 fee to companies house

 

http://www.companieshouse.gov.uk/forms/generalForms/RT01_application_for...

 

Here are the guidance notes:

http://www.companieshouse.gov.uk/about/gbhtml/gp4.shtml#ch4

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