Strike Off Company?

Didn't find your answer?

Hi,

I have had a limited company for several years. I am the only director.

The business of the company is an 'advertising agency', which is actually a website, where revenue would be generated from people paying to list their products in return for a fee.

In reality, this has never occurred. The website has been live for several years but has never received any income. As a result, I have filed dormant accounts for years.

Due to an oversight, I failed to file accounts on time, so now face a penalty of £750-£1500. I have read that dissolving the company via strike off would mean the company would cease to exist and that the late payment penalties would 'die' with the company.

My question is - could I apply for strike off and keep the website? The company and website have the same name (except the 'ltd'). However, my website is not listed with Companies House and is personally owned by myself, not the limited company.

Many thanks. 

Replies (18)

Please login or register to join the discussion.

RLI
By lionofludesch
04th Nov 2021 16:45

You say there was no income - were there any transactions at all ?

Payments, for instance ? If there were, it's highly likely that the company wasn't entitled to file dormant accounts.

Thanks (0)
Replying to lionofludesch:
avatar
By Sid8282
04th Nov 2021 17:02

lionofludesch wrote:

You say there was no income - were there any transactions at all ?

Payments, for instance ? If there were, it's highly likely that the company wasn't entitled to file dormant accounts.

There were no transactions at all. Basically I paid the webhosting from my own pocket. No payments were ever taken from customers.

Thanks (0)
Replying to Sid8282:
RLI
By lionofludesch
04th Nov 2021 18:02

So who owns the website ?

You or the company ?

Thanks (0)
Replying to lionofludesch:
avatar
By Sid8282
04th Nov 2021 17:52

lionofludesch wrote:

So who owsns the website ?

You or the company ?

I personally own the website.

Thanks (0)
Replying to Sid8282:
RLI
By lionofludesch
04th Nov 2021 18:05

Sid8282 wrote:

lionofludesch wrote:

So who owns the website ?

You or the company ?

I personally own the website.

Not really sure why you're in any doubt, then.

You own the site. Or course you can keep it.

Thanks (1)
avatar
By David Ex
04th Nov 2021 16:56

You should speak to an accountant - where revenue is generated from people paying for accounting and tax advice in return for a fee.

You’ll find one here:

https://www.icaew.com/about-icaew/find-a-chartered-accountant

Thanks (1)
avatar
By Hugo Fair
04th Nov 2021 18:00

Ignoring the obvious temptation to ask "Why?" (repeatedly) ... when you say "However, my website is not listed with Companies House and is personally owned by myself, not the limited company" you're focussed on the wrong thing.

Ownership of the website is not defined by what 'you believe' (and there's no way to list it at Companies House) ... but the domain will be registered by one of the Registrar bodies - so who does it say there is the owner?
If it says the company then you are (to use the vernacular) 'stuffed', as any transfer will almost certainly mean that the company isn't dormant.

Quite separately, the issue of "The company and website have the same name (except the 'ltd')" is only of possible relevance in an entirely different context. Whilst you have both, the company provides some protection against someone else setting-up a similarly named domain ... but with the company gone, so is that protection.

Finally, that's quite some penalty that you've racked-up "Due to an oversight" ... which suggests that running (even a dormant) company may not be your strength.
As a general rule of thumb, if you own a company but don't appoint an accountant for it - then it is more than likely that any 'saving' will be exceeded by unnecessary costs.

Thanks (3)
RLI
By lionofludesch
04th Nov 2021 18:11

£750 - £1500 - you've let this oversight go on for a fair while then ?

Thanks (2)
Replying to lionofludesch:
avatar
By Sid8282
04th Nov 2021 18:20

lionofludesch wrote:

£750 - £1500 - you've let this oversight go on for a fair while then ?

I have yet to receive the penalty, but the guidance suggests that 3 months late is a fine of £750, which they double if it's late for the second year in a row.

Unfortunately I had covid for 3 weeks around filing time and once I recovered it slipped my mind (post gets delivered to a registered address who failed to tell me I had post).

Thanks (0)
Replying to Sid8282:
RLI
By lionofludesch
04th Nov 2021 18:31

Sid8282 wrote:

lionofludesch wrote:

£750 - £1500 - you've let this oversight go on for a fair while then ?

I have yet to receive the penalty, but the guidance suggests that 3 months late is a fine of £750, which they double if it's late for the second year in a row.

Unfortunately I had covid for 3 weeks around filing time and once I recovered it slipped my mind (post gets delivered to a registered address who failed to tell me I had post).

Ah - reliance on others. Coupled with leaving filing until ten minutes before the deadline. Always risky.

You could've checked your company's record on the Companies House site occasionally. Or - you could've set up e-reminders on your Webfiling account. Free service. Sends emails to up to four addresses. I always used them when I was in practice and found them very helpful.

Too late for this particular filing but it might help you avoid another expensive disaster in the future.

Thanks (1)
Replying to lionofludesch:
avatar
By Sid8282
04th Nov 2021 18:34

lionofludesch wrote:

Sid8282 wrote:

lionofludesch wrote:

£750 - £1500 - you've let this oversight go on for a fair while then ?

I have yet to receive the penalty, but the guidance suggests that 3 months late is a fine of £750, which they double if it's late for the second year in a row.

Unfortunately I had covid for 3 weeks around filing time and once I recovered it slipped my mind (post gets delivered to a registered address who failed to tell me I had post).

Ah - reliance on others. Coupled with leaving filing until ten minutes before the deadline. Always risky.

You could've checked your company's record on the Companies House site occasionally. Or - you could've set up e-reminders on your Webfiling account. Free service. Sends emails to up to four addresses. I always used them when I was in practice and found them very helpful.

Too late for this particular filing but it might help you avoid another expensive disaster in the future.

Yes, it was the e-reminder for the confirmation statement that made me login, file the statement, and discover strike off proceedings had been started.

I have now filed the accounts late so the strike off has been discontinued. I'm now expecting the fine after which I may try to ask for voluntary strike off if my fine appeal likely fails.

Thanks (0)
Replying to Sid8282:
avatar
By Paul Crowley
04th Nov 2021 18:52

The appeal will probably fail
Co house rely on penalties given that they only get £13 a year per company

Thanks (1)
Replying to Paul Crowley:
avatar
By Sid8282
04th Nov 2021 19:12

Paul Crowley wrote:

The appeal will probably fail
Co house rely on penalties given that they only get £13 a year per company

Yes I'm expecting it to fail. I read on their guidance that they tend to refuse appeals and offer dormant companies either a pay plan or suggest voluntary strike off.

Thanks (0)
Replying to Sid8282:
By kenny achampong
05th Nov 2021 09:10

If it's not too late, dont file anything. The penalty will only be payable once you file the accounts. And if you don't file it will just get struck off.

Thanks (0)
avatar
By Paul Crowley
04th Nov 2021 18:47

Close the bank account and strike off
Dormant accounts take 10 minutes, yet late twice in a row
Why have registered office elsewhere

Usually there is a fee for a registered office

Thanks (1)
Replying to Paul Crowley:
avatar
By Sid8282
04th Nov 2021 19:14

Paul Crowley wrote:

Close the bank account and strike off
Dormant accounts take 10 minutes, yet late twice in a row
Why have registered office elsewhere

Usually there is a fee for a registered office

Basically I wanted everything separate from my home address. Plus the registered location added a bit of prestige for the company.

Thanks (0)
Replying to Sid8282:
RLI
By lionofludesch
04th Nov 2021 19:28

Sid8282 wrote:

Basically I wanted everything separate from my home address. Plus the registered location added a bit of prestige for the company.

Prestige? Oh aye, I can see that.

Raised your sales as high as zero.

Thanks (8)
Replying to Sid8282:
avatar
By Hugo Fair
04th Nov 2021 19:32

How could (or indeed did) a dormant company intend to leverage that prestige?

It's not intended as an insult when I say that if you were an author, the saga of your company would be aptly described as a 'vanity project'.

Hopefully some useful lessons learned for the next time around?

Thanks (2)