Striking off the company

[Rene-PL-UK]

There are 3 main requirements that I need to meet in order to close the company:

1) Not traded in the last 3 months
2) Not changed its name in the last 3 months
3) Is not subject to any legal proceedings, current or proposed


1. What precisely means "trading"? If the company had expenses and no income, was it trading?

3. Is there a way to check if there are any legal proceedings?


Also, "Any interested parties (e.g. HM Revenue & Customs, creditors, employees, members, etc.) must be sent a copy of the completed form within 1 week of the application".

If I had no employees, creditors, members, the only party is HMRC?


Thanks!

[elainec100@cheapaccounting]

This has slightly changed now:

Sections 1004 and 1005 of the Companies Act 2006 set out the circumstances in which the company may not apply to be struck off. For example, the company may not make an application for voluntary strike off if, at any time in the last 3 months, it has:


traded or otherwise carried on business;
changed its name;
made a disposal for value of property or rights that, immediately before ceasing to trade or otherwise carry on business, it held for the purpose of disposal for gain in the normal course of trading or otherwise carrying on business. For example, a company in business to sell apples could not continue selling apples during that 3 month period but it could sell the truck it once used to deliver the apples or the warehouse where they were stored:
engaged in any other activity except one which is necessary or expedient for the purpose of:

making an application for strike off or deciding whether to do so(for example, a company may seek professional advice on the application and pay the costs of submitting the ‘Striking off application by a company, Form DS01) (http://www.ukbusinessforums.co.uk/forms/formsContinuation.shtml#DS01)’;
concluding the affairs of the company;
complying with any statutory requirement.


traded or other carried on business is the key question.

HMRC will be your only party in the example you quote but as per your other post they will want the accounts to date and CT paid.

[Jenni384]

HMRC will be your only party in the example you quote but as per your other post they will want the accounts to date and CT paid.

You'd think they would.

I recently heard of a case where they knew CT was due, but didn't object to the striking off.... :rolleyes:

[elainec100@cheapaccounting]

You'd think they would.

I recently heard of a case where they knew CT was due, but didn't object to the striking off.... :rolleyes:

I see cases like a lot now but often it is because HMRC have not been told that tax is due.

For me I have to follow the rules and advise clients to act in the 'proper' way - some may ignore me but there we go :p

[Jenni384]

I see cases like a lot now but often it is because HMRC have not been told that tax is due.

For me I have to follow the rules and advise clients to act in the 'proper' way - some may ignore me but there we go :p
Absolutely agreed. I't's important to follow the rules.

The case I mentioned, HMRC were well aware there was tax due but forgot to object to the striking off anyway! But then, we know how competent they can be... :rolleyes::p

[Rene-PL-UK]

traded or other carried on business is the key question.

HMRC will be your only party in the example you quote but as per your other post they will want the accounts to date and CT paid.


Thank you Ladies!

Ok, my recycling mentality (ie save the trees, don't make more topics than necessary) causes confusions.

Elanie, I happen to have 2 companies, both of them will need to be closed down soon.

In the case I am talking about, company has been formed and that's pretty much it. Never traded, no activity had been done. In this case, I suppose HMRC will be the only party to inform.

Also, since the company made no loss no profit, shall I be doing any accounts or pay any CT?

[elainec100@cheapaccounting]

In the case I am talking about, company has been formed and that's pretty much it. Never traded, no activity had been done. In this case, I suppose HMRC will be the only party to inform.

Also, since the company made no loss no profit, shall I be doing any accounts or pay any CT?

So there are no accounting transactions at all?

Was it dormant - see this:

1. What is a dormant company?
A company is dormant if it has had no 'significant accounting transactions' during the accounting period. A significant accounting transaction is one which the company should enter in its accounting records.
When determining whether a company is dormant you can disregard the following transactions:


payment for shares taken by subscribers to the memorandum of association;
fees paid to the Registrar of Companies for a change of company name, the re-registration of a company and filing annual returns; and
payment of a civil penalty for late filing of accounts.

from here:

http://www.companieshouse.gov.uk/about/gbhtml/gp2.shtml#ch8

[Rene-PL-UK]

No, it wasn't dormant. The company was formed, yet due to various circumstances never been used (but was, and still is if one will check companies house webpage).

No account transactions at all, no bank account has. The only thing that has been done was actually company formation.

What shall I do with it?

[elainec100@cheapaccounting]

Strike it off - follow this link to see how:

http://www.companieshouse.gov.uk/about/gbhtml/gp4.shtml#ch1

[Rene-PL-UK]

Thanks Elanie

The only answer I couldn't find there is: if company had no account transactions whatsoever, shall I be concerned about any bookkeeping or TC or not at all, and the DS01 form + 10gbp payment is all I need?

[elainec100@cheapaccounting]

No just use the form and strike off

[Rene-PL-UK]

Something easy at last! :) Thank you Elanie!

[Jason99]

Hi I sent the striking off form to companies house - but in error did not send this to HMRC. The company never traded and was initially used to protect a name.
What should I do ?

[David Griffiths]

Hi I sent the striking off form to companies house - but in error did not send this to HMRC. The company never traded and was initially used to protect a name.
What should I do ?

Why do you need to send it to HMRC?

If you've never traded they could only be a creditor if you've incurred some kind of penalty. If that's the case, write and telll them

If they are not a creditor, they you didn't need to send them a copy.

You don't say if the striking off process is ongoing or complete.

[Jason99]

Thanks David for your kind help.
I'm a few weeks into the process only to receive a fine from HMRC for not filing accounts.
I'm concerned about being liable for a further penalty (for not filing accounts) and unsure which tax office to write to and that's becuase :
1) I wrote to them more than a year ago informing them that the Business was not trading (this was by completing some kind of reminder form they sent me) I kept a copy of this letter.

2)Despite (1) I've received a fine from an office at a different location from the one I wrote to.

I'm a little clueless what to do ........although more clued up from your reply.

[David Griffiths]

Write to the Revenue, with a copy of your original letter. Point out that the company has never traded and that you told them that.

Point out that this means that the company has never had a Corporation Tax Accounting Period, and that no penalty is therefore due for failure to submit.

Tell them to cancel the penalty, and to note that the company is going through the striking off procedure.

You may need to repeat this a few times until somebody sufficiently aware gets to deal with it. :rolleyes: I've find that offering to call in and tattoo it on somebody's forehead usually gets the message across!

[accountancyextra]

I've find that offering to call in and tattoo it on somebody's forehead usually gets the message across!

Might try adopting that tactic myself from now on....Love it:D

[elainec100@cheapaccounting]

I've find that offering to call in and tattoo it on somebody's forehead usually gets the message across!

I so love you approach to a HMRC appeal :p

[David Griffiths]

I so love you approach to a HMRC appeal :p

Sometimes it seems to be the only way to get them to take notice.

We've had a few occasions when the Revenue haven't taken notice of change of circumstances, despite being told half a dozen times. I've asked them if telling them 20 times will do the trick, and would they mind if I sent them all 20 notices at once to save postage. That worked!

Last year, one of my clients got a PAYE demand estimated for £225,000. I couldn't resist asking for time to pay, and asked if they could avoid strain on cashflow by paying at their normal rate of about £1800 per year, so spreading the payments over 133 years. The tax office actually phoned to say that they thought that this was quite funny! (They also agreed that the demand was wrong :) )

You've got to get some fun out of work, haven't you? :p

[elainec100@cheapaccounting]

You've got to get some fun out of work, haven't you? :p

agreed - at least some HMRC do have a sense of humour. I expect you would need to have in their job.