Share this content

Ltd company - strike off opposed

Didn't find your answer?

We have a Ltd company client, which hasn't traded since COVID but hasn't prepared accounts for 31 December 2018 or later.  The company has no funds, the directors are owed a significant amount.  We have submitted a striking off, but HMRC objected due to lack of CTRs for 2018, 2019 and 2020.  Due to massive accumulated losses bf, there would be no CT liability in any accounts prepared.  The registered office is the client's old home address, but they have just advised that they have moved from that property now.  No Bounceback Loans.

Now HMRC has objected we are unsure what advice to give. Here are a few possibilities that cross our mind:

- change the registered to our office address to protect the new home address

- prepare CTRs with £NIL liabilities without having prepared full accounts.  Maybe we could ask for a small fee to be introduced personally from the directors, to cover this work. 

- could the directors just resign, leaving it directorless

Any other suggestions very welcome, and thanks for any feedback.  

Replies (21)

Please login or register to join the discussion.

By williams lester accountants
29th Nov 2021 12:01

Tell them to fulfil their obligations and get accounts prepared for the years currently missing.

Thanks (0)
Replying to williams lester accountants:
avatar
By Roland195
29th Nov 2021 13:00

The directors are obliged by statute to put up the shutters when it becomes apparent the company has no hope of meeting it debts but this does not extend to paying for professional services either standard accountancy/tax compliance or insolvency from their own means.

Thanks (0)
Replying to Roland195:
avatar
By Bobbo
29th Nov 2021 13:37

As we all know from some of the questions on this forum 'fulfilling their obligations and getting accounts prepared' does not necessarily mean paying for accountancy or tax services.

Thanks (0)
avatar
By Paul Crowley
29th Nov 2021 12:28

Not exactly compliant are they? Nearly 4 years of compliance failure
Why worry, it will all go away eventually
But they definitely need to change the registered office
They remain liable to appoint new directors if they do resign. Cannot get rid of the shares

Thanks (0)
Avatar
By I'msorryIhaven'taclue
29th Nov 2021 12:35

Are you just assuming that it was HMRC who objected, or do you know that for certain?

Thanks (0)
Replying to I'msorryIhaven'taclue:
Avatar
By I'msorryIhaven'taclue
29th Nov 2021 15:43

I have a case in which every time the Registrar proposes a strike-off the director himself objects, thereby extending the company a further 6 months in which to trade scot-free of taxes or preparing accounts. No accounts for 3 years, keeps promising to settle our fees. For a long while I imagined it was HMRC behind the objection(s).

Different client, company now struck off, was an IT contractor who I persuaded must prepare penultimate trading period accounts and settle up £10k of so of C.T. which would otherwise follow him round - next time I looked (with an eye on the final trading period's accounts) the company had been struck-off without so much as a murmur of any HMRC objection (which naturally caused the director to express expletive doubt regarding my judgement). It's pot luck, I suppose!

Thanks (0)
avatar
By Leywood
29th Nov 2021 13:43

Small fee? Why?

They have swept their responsibilities under the carpet yet you are the one bending over backwards to sort it. If you must take it on, take full fee, paid in advance by the Directors.

Of course HMRC will object. How would they know there is no CT liability unless they are told. Do you know for a fact that they have made no profits, without having done the accounts?

Thanks (1)
RLI
By lionofludesch
29th Nov 2021 14:13

Invite HMRC to start a formal creditors' liquidation.

If there's no money, they'll give up at some point.

The trick is to get the objectors (be that HMRC or anyone else) to realise that their debt isn't worth pursuing. Indeed, it sounds like HMRC's debt doesn't even exist.

Thanks (0)
By williams lester accountants
29th Nov 2021 14:18

Why did they not prepare the 2018 accounts, these would have been due by 30/09/2019, well before COVID disrupted everything? COVID as an excuse just doesn't wash on this one.....

Thanks (0)
Replying to williams lester accountants:
avatar
By Tax Dragon
29th Nov 2021 14:30

It is also odd how, every time a company mentioned in here that's in any kind of default ceases trading (whether planned or brought about unexpectedly by external factors), it seems to have no cash, no fixed assets, no nothing to its name at the moment it so ceases. One wonders how they all survived before.

Thanks (1)
Replying to Tax Dragon:
RLI
By lionofludesch
29th Nov 2021 15:13

Tax Dragon wrote:

One wonders how they all survived before.

They didn't, did they ? They're being struck off.

Thanks (0)
Replying to Tax Dragon:
RLI
By lionofludesch
29th Nov 2021 15:13

Tax Dragon wrote:

One wonders how they all survived before.

They didn't, did they ? They're being struck off.

Thanks (0)
Replying to lionofludesch:
avatar
By Tax Dragon
29th Nov 2021 15:19

That's true. Present case funded by director lending.

I should've read the question.

Thanks (0)
Replying to Tax Dragon:
RLI
By lionofludesch
29th Nov 2021 15:32

Lots of companies are founded more on hope than reality,

Lots of companies never even start trading.

There are a lot of optimistic people with a "great business model" out there.

I've met quite a few.

Thanks (0)
Replying to lionofludesch:
ALISK
By atleastisoundknowledgable...
30th Nov 2021 18:00

lionofludesch wrote:

I've met quite a few.

I’ve been engaged by quite a few.

Thanks (0)
Lisa Thomas
By Lisa Thomas
29th Nov 2021 15:01

If HMRC/creditors don't liquidate the company then Companies House will eventually strike it off for non filing of returns.

Thanks (3)
Replying to Insolvency Practitioner:
avatar
By Paul Crowley
29th Nov 2021 16:09

Agree
Companies house did in the past expect as a minimum some sort of court action.
Noone in authority cares about this stuff

Thanks (0)
Replying to Insolvency Practitioner:
Flag of the Soviet Union
By thevaliant
29th Nov 2021 20:10

Agreed. Doing nothing is always the 'best' option!

Have a client - been dormant for four years. CS was due, so I asked again, are you really sure you want the company?
Director 1 (of 2) replied with, "Nawh... strike it off."
Sure thing. £8 please and an email from Director 2 to confirm his agreement.

Director 1 replied with... "HOW FUSHING MUCH? I'm not paying that.... plus I don't speak to Director 2 anymore. File nothing. They'll strike it off eventually."

£8...!
Wouldn't pay £8. (Director 2 is definitely a millionaire. I think Director 1 is likely one too)

Thanks (2)
Replying to thevaliant:
avatar
By Paul Crowley
29th Nov 2021 20:44

The richest clients are the most challenging
I send more payment reminders to people that spend more than my fee on a meal than the basic rate taxpayers

Thanks (1)
Replying to Paul Crowley:
Flag of the Soviet Union
By thevaliant
30th Nov 2021 09:49

Agreed, and my partners often lose sight of this.
Director 1 (in our case) is very rich and has, in the past, given us *some* work in deals he's been involved in. But this is far less now he's close to retirement.

When I raised the issue of us filing the dormant accounts AND paying the CS fee (which we've done every year) I was told the above, and not to rock boats by asking for a fee.

So we've been dutifully paying £13 a year, along with my salary costs to incorporate (£12) and prepare 4 dormant accounts and inform HMRC about said dormancy.
Basically, the client has never paid anything to have this company for the last four years. We've paid the lot.

Maybe the partner is right, and its 'worth it', but given the level of ongoing work I seriously doubt it. I'm now going to write £500 off WIP now.

Thanks (0)
Replying to thevaliant:
Avatar
By I'msorryIhaven'taclue
30th Nov 2021 11:54

It's a racket alright, operating via a limited company for a number of years racking up tax and VAT debts, and then have the government shut it down for you so that you can start the process again with a clean sheet! For me, it's just a variation of long and short firm fraud.

The government - not just HMRC - should be targeting such companies rather than aiding and abetting them.

Thanks (0)
Share this content