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.
Replies (15)
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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.
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.
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.
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.
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).
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.
@ 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.
@ 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.
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.