SpongeBob plan

Ct600

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I am in the process of using the SpongeBob plan. The business was advertised last month as being strike off within 2 months but HMRC have objected as I haven't submitted a ct600 for period April 2022 to March 2023 . Business stopped trading in March 2023 . Do I have to prepare this as the business has no funds in order to pay the accountant ? 

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By williams lester accountants
22nd Apr 2024 17:55

Who produced the final accounts? Will they not prepare the CT600?

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RLI
By lionofludesch
22nd Apr 2024 18:12

Not really a big fan of SpongeBob. It's for dishonest people imho.

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Replying to lionofludesch:
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By HL86
23rd Apr 2024 06:41

Not heard of the spongeBob plan before, what on earth is this....

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Replying to HL86:
RLI
By lionofludesch
23rd Apr 2024 07:17

HL86 wrote:

Not heard of the spongeBob plan before, what on earth is this....

Trade, strip all the cash out, liquidate, cheat your creditors.

In a nutshell.

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Replying to HL86:
Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
24th Apr 2024 14:59

It's dissolution where a company is insolvent but cannot afford liquidation. It is often suggested by a user called Spongebob on another forum.

https://www.ukbusinessforums.co.uk/articles/is-the-spongebob-plan-pants-...

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By Bobbo
22nd Apr 2024 18:26

Liv wrote:

I am in the process of using the SpongeBob plan. The business was advertised last month as being strike off within 2 months but HMRC have objected as I haven't submitted a ct600 for period April 2022 to March 2023 . Business stopped trading in March 2023 . Do I have to prepare this as the business has no funds in order to pay the accountant ? 

What happened to the company's funds?

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By Leywood
22nd Apr 2024 18:49

Is there a director's loan?

Are you suggesting tax evasion?

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By Postingcomments
22nd Apr 2024 19:39

Ask Spongebob. It's his plan.

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By Ruddles
22nd Apr 2024 19:43

There is nothing stopping you from using your own funds to pay for accounts and tax return to be prepared.

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By User deleted
22nd Apr 2024 19:57

The business has made a loss the last few years hence the reason the business stopped trading . Therefore clearly there are no business funds ! No tax evasion just a business that has struggled and failed . My question being will the business be eventually struck off even if the last accounts and ct are not filed

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Replying to User deleted:
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By Leywood
22nd Apr 2024 20:04

No assets?
Debt?
You haven’t answered anybody’s questions.

But don’t. This is a forum for accountants to exchange technical information, not for business owners to get free tax and accountancy advice.

See Ruddles comment.

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Replying to User deleted:
By williams lester accountants
22nd Apr 2024 21:23

Maybe, maybe not. But, are you willing to wait and find out with the possibility of being personally fined for non compliance?

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Replying to williams lester accountants:
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By User deleted
22nd Apr 2024 21:24

Thanks for responding .

I apologise I hadn’t realised this was a forum for professionals to professionals only I will delete my post

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By FactChecker
23rd Apr 2024 12:23

If there's one thing that most members here dislike more than a freeloader trying to get professional advice without paying for it ... it's when said freeloaders are openly trying to cheat the system by not paying what they owe. Goodbye.

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Replying to FactChecker:
By Ruddles
23rd Apr 2024 13:50

In all fairness, the OP did say that the business has made losses in its last few years so it is quite possible that it owed no tax (or anything to anyone else). Although he also admitted to using the Spongebob plan, which by definition involves writing to creditors so ...

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Replying to Ruddles:
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By FactChecker
23rd Apr 2024 16:58

We'll never know - as OP has disappeared (or rather disintegrated into unknown atoms).

But whilst I was indeed being assumptive, OP never said anything about creditors ... just that "I am in the process of using the SpongeBob plan" and "The business .. has no funds". I drew my own conclusions (as in why mention SpongeBob otherwise)?

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Replying to FactChecker:
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By Leywood
23rd Apr 2024 16:36

I think Aweb should have a duty to report via SAR. Im sure they will have enough info on profile pages. (or maybe not!)

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By Matrix
23rd Apr 2024 16:41

HMRC won't know how much you owe them unless you advise them so, if there are losses reducing the prior year liability, then write to them if you are not preparing a CT600 and then they can decide whether to pursue any outstanding liabilities. It depends if there are any assets such as a Director loan account. Also you don't say if there is a BBL.

I have noted that Companies House are not just striking off companies anymore. I would ask on UKBF for recent experiences of this plan.

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Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
24th Apr 2024 14:58

HMRC will automatically object to the striking off (as will the bank's if there is an o/s Bounce Back Loan) when there are outstanding tax returns and/or outstanding debts.

I assume you took insolvency advice before issuing the notice to creditors of the intended strike off and have established that dissolution is the only option in the circumstances.

There is no point in filing the tax return - eventually Companies House will strike the company off for non filing of statutory returns or a creditor will liquidate the company.

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Replying to Insolvency Practitioner:
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By Justin Bryant
24th Apr 2024 16:02

"I assume you took insolvency advice.."

I would assume the exact opposite here.

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Replying to Insolvency Practitioner:
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By Justin Bryant
24th Apr 2024 16:03

"I assume you took insolvency advice.."

I would assume the exact opposite here.

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