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CT600 after ceasing to trade?

I have a Ltd company client that ceased trading on 31.03.16. The statutory accounts for YE 31.03.16 included a statement in the Director's report that the company ceased trading on 31.03.16. A Form CT600 for YE 31.03.16 has been filed with html accounts attached. HMRC is insisting on statutory accounts and CT600 for the period from 01.04.16 to 10.11.16 (date of liquidation).

Can HMRC do this? My understanding has always been that there is no requirement to file a CT600 that is not trading. 

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13th Dec 2017 13:30

They can't insist on statutory accounts because accounts made up to that date would not be statutory. They are of course perfectly within their rights to ask for a tax return, because without it how would they know whether there were any profits to collect tax on?

But the point you may be missing is that as the company was liquidated over a year ago it is no longer in a position to make any returns. HMRC should have intervened in the liquidation when they had the opportunity yo do so. That is what you should say to them.

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to johngroganjga
13th Dec 2017 13:14

Thank you for your post.
Surely if the Company has ceased trading it follows that there cannot be any profits on which to collect tax?

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to travisguy
13th Dec 2017 13:27

Well, they could have sold an asset.

In theory.

Tell them there's no company and no directors. They'll go away . They missed their chance - not that they seem to have lost much tax by it.

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to travisguy
13th Dec 2017 13:29

Assuming it has no continuing source of non-trading income, and has made no capital gains, yes indeed that is the case. But how do HMRC know whether that is the case or not without accounts and a tax return?

But you are missing my point. My point is that this is all irrelevant as HMRC have missed the boat.

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By Ruddles
to johngroganjga
13th Dec 2017 13:50

Perhaps, John - the OP may be confusing his terminology. The term 'liquidation' refers to the process of liquidating the assets of, and dissolving, a company - which rarely happens on a specific date. By "date of liquidation" he could mean either date of appointment of liquidator or the date of dissolution. Not for the first time we're left guessing.

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to Ruddles
13th Dec 2017 13:59

Yes I realise that, but if a liquidator had been appointed he or she would be dealing with HMRC, but the OP seems to be.

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By Ruddles
to johngroganjga
13th Dec 2017 14:36

Perhaps we're not talking about a liquidation at all ;¬)

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