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File final tax return. Company closing

My company has been accepted and is being striked off. Do I need to file final accounts

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Hi,

Unfortunately, the company made no money (not a single penny) after 8 months and I could no longer keep up trying to run the business and keep my self going. To do things properly I sought out an accountant for advice to file my final accounts, I was informed that closing down the company would be fine as I have earnt no money nor have I filed any previous accounts (or been asked to) from HMRC.

The application to strike off the company was successful. However, I am now in a bit of a panic as a friend told me that I would have needed to file accounts this. Can anyone confirm this or should I get in touch with HMRC?

Nathan.

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By mjshort
15th Jul 2019 06:54

HMRC can stop its dissolution. This would normally happen about a week after the First Gazette notice.
If this happens you will need to do the Corporation Tax, Vat Return etc to get up to date.

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15th Jul 2019 07:56

You say your company is being “striked” (you mean “struck”) off, and that your application to strike it off was successful. Which is it? Has it already happened yet or not?

The above response assumes that it hasn’t, and I agree with it on that basis. The position is however different if the company no longer exists.

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to johngroganjga
15th Jul 2019 09:01

Thanks for the reply,

Apologies for not making the question fully clear.

My company is in the process of being struck off and will be due to show in the gazette next month (it's been a month since the process started).

Really my question is what would be the best step now? you say the HMRC could stop the dissolutionof the company, would it be best to contact them about this to prevent this happening?

Nathan

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to NathanRob123
15th Jul 2019 09:08

It would have been better to get your company’s affairs straight with HMRC before applying to strike the company off, so you have done things in the wrong order.

But I would now await developments before doing anything. HMRC may object to the striking off, as you have been told above. But on the other hand they may not.

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15th Jul 2019 09:00

Thanks for the replies.

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15th Jul 2019 09:33

Unlikely that HMRC will stop the striking off process. If they do, you'd have to submit a return. If they don't, no problem.

Either way, as you owe nothing, no real problem.

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15th Jul 2019 12:28

HMRC will almost certainly object to the striking off if you have not submitted your final tax returns.

Then you will have to keep lodging the strike off forms unless and until it slips through the net or HMRC liquidator (unlikely).

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to Insolvency Practitioner
15th Jul 2019 12:41

If this is the case, would it best to contact HMRC or am I too late to file the final accounts now?

Nathan

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to NathanRob123
15th Jul 2019 12:49

Based on prior experience of such cases HMRC will almost certainly not object. However, if it is causing you sleepless nights I would suggest a brief letter to HMRC (at CT Services, BX9 1AX) explaining that the company has realised no profits in its brief life and that you have therefore decided to strike the company off, and asking HMRC to confirm that they will not object. It would help if you were to enclose a rough profit and loss account (no need to incur the expense of preparing full accounts) to back up your statement.

And if it helps to relieve your panic, your friend was wrong on one point - there is no need whatsoever to file accounts with anyone.

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to Wilson Philips
15th Jul 2019 13:14

I think for peace of mind I will send a letter clarifying the company has made no profits or losses during its life.

Thanks.

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15th Jul 2019 12:57

@ NathanRob123. (OP).

I must respectfully disagree comments above that you should adopt a PASSIVE policy towards HMRC, by NOT advising them of the facts regarding the loss-making activities of your company.

If you adopt that policy, HMRC may or may not object to the striking-off of your company - clearly, if they DO NOT then object, then they will have been negligent (in failing to carry out their obligations to protect the public purse since, self-evidently, they currently have NO knowledge of whether your company has or has not made a substantial profit).

You should (or your accountant should on your behalf) write to HMRC, to provide them with a brief outline of the company's loss-making activities and the reason for such loss; and specifically ask HMRC to confirm that they will not object to the striking-off application.

ALMOST CERTAINLY, HMRC will then NOT object to the application, and will NOT require the submission of Tax Returns.

Basil.

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to fawltybasil2575
15th Jul 2019 13:11

The company made no loss or profits during the time of it being opened.

This being the case I think it's best I send a letter and ask then to confirm that they will not object to the application.

Would it be best to also provide details such as bank statements to show the company balance at 0?

Nathan

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to fawltybasil2575
16th Jul 2019 09:29

fawltybasil2575 wrote:

@ NathanRob123. (OP).

I must respectfully disagree comments above that you should adopt a PASSIVE policy towards HMRC, by NOT advising them of the facts regarding the loss-making activities of your company.

If you adopt that policy, HMRC may or may not object to the striking-off of your company - clearly, if they DO NOT then object, then they will have been negligent (in failing to carry out their obligations to protect the public purse since, self-evidently, they currently have NO knowledge of whether your company has or has not made a substantial profit).

You should (or your accountant should on your behalf) write to HMRC, to provide them with a brief outline of the company's loss-making activities and the reason for such loss; and specifically ask HMRC to confirm that they will not object to the striking-off application.

ALMOST CERTAINLY, HMRC will then NOT object to the application, and will NOT require the submission of Tax Returns.

Basil.

100% correct Basil.

I do this with every type of case like this and have never had any objections from HMRC.

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By SJRUK
16th Jul 2019 08:40

You could just write to HMRC and just state the facts - that the company has not made any money and that its currently being struck off.
Unless their is a CT liability there shouldn't be a need to file any accounts.

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to SJRUK
16th Jul 2019 10:01

Even if there is a CT liability there is no need to file any accounts.

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