Close Ltd company to avoid grief?

[Naive citizen]

Hi there. Anyone able to provide some sensible (i.e. not knee-jerky) advice on whether or not it would be a good idea to close my Limited company.

I have had the company since 2009 and filed the first two corporation tax returns. About 2 years later HMRC decided the accounts submitted with the returns had been sent in the wrong format so they deleted the returns from my HMRC account and asked for them to be resubmitted.

This triggered the fine issuing process where the system detects that I hadn't filed any returns (when I had, I had the acknowledgements) - I have partially rectified this by resubmitting the first return but have been too busy to perform all the necessary calculations to fix and send the 2nd. Have written to HMRC to explain but have been waiting more than a month for a reply.

So question is, can I just get rid of all this hassle by closing the limited company? I don't owe any tax as the company has been loss making.

Can I just write to HMRC with a statement to explain everything and then close the company?

 

[MyAccountantOnline]

Can I just write to HMRC with a statement to explain everything and then close the company?

I suspect HMRC will object to any striking-off application in the circumstances.

 

[Naive citizen]

So are you saying it would be better to try and sort out all the HMRC carp (which will go on for years) rather than to just close the company?

 

[VanillaOnlineAccountancy]

As Nicola said, the problem you will have is HMRC will object to the striking-off application. In practice this means you will more than likely have to sort out the issues before the company can be closed.

 

[benion]

I am new to business and not too clever with how to handle HMRC but I just wanted to say good luck and I hope you can get it all sorted. Perhaps ask an accountant?

 

[Socio South West]

This looks horribly like one of those cases that a relatively small investment with an accountant would have saved you a bundle of grief.

This shouldn't be the arbiter of whether you close the company down...

1) Is the company solvent and lawfully trading?
2) Are you getting a suitable reward for your enterprise?
3) Are you enjoying the work the company does?

Those are more the problems that should decide whether you close the company or not - Dealing with HMRC over essentially an administrative issue is not a make or break matter to my way of thinking.

 

[MyAccountantOnline]

So are you saying it would be better to try and sort out all the HMRC carp (which will go on for years) rather than to just close the company?

I'm not saying its better, you should and if you dont HMRC will probably object to the striking-off. You will have to notify them of the striking-off and with outstanding accounts, Returns and tax they will probably/should object.

 

[Naive citizen]

Thanks for the advice guys.

I just get so wound up with the grief they cause.

They rejected my first returns 2 years after I filed them and then started sending out fines and demands for unpaid corporation tax.

The company itself is ok, so the plan was to continue trading and just switch to a new limited company so I can get a new HMRC file and put an end to all the stress. Draw a line under it.

 

[Naive citizen]

Funny how when you moan about the HMRC not replying to letters that you suddenly get something in the post. My letter was sent 15th of May and they have only just responded.

Trouble is, the letter is so badly written (by someone working at HMRC, i.e. not automated) that it's impossible to work out whether I'm off the hook or not.
It seems to be saying fines are cancelled and they've acknowledged receipt of my letter but the whole thing is full of double-negatives so I'm just not not not sure what on earth is going on. One of the most bizarrely written letters I've had in years.

 

[nickfrance]

Funny how when you moan about the HMRC not replying to letters that you suddenly get something in the post. My letter was sent 15th of May and they have only just responded.

Trouble is, the letter is so badly written (by someone working at HMRC, i.e. not automated) that it's impossible to work out whether I'm off the hook or not.
It seems to be saying fines are cancelled and they've acknowledged receipt of my letter but the whole thing is full of double-negatives so I'm just not not not sure what on earth is going on. One of the most bizarrely written letters I've had in years.

that would not surprise me as they never say they are fully happy with you , they like the let the door open for them to come back

 

[JBlack]

May we see the letter? (With personal information removed of course.) Might be interesting, and maybe somebody can decipher it for you.

 

[Alan R Price]

Apply for striking off if the company is of no further use to you. If HMRC want to object, let them. Their alternative is to present a winding up petition, but how could they do that if there is no tax debt? If they object, simply apply again three months later - Companies House won't allow them to keep objecting ad infinitum. In the unlikely event they succeed in getting a winding-up order, so what? Half a day dealing with the official receiver and your responsibilities for the company's affairs will be gone - no more filing returns or dealing with letters from semi-literate civil servants.

If HMRC decide they want to inspect the company's records, let them. I reckon they probably have better things to do than chase a company which has no tax debts, and which they are aware is going to be struck off.

 

[arcon5]

Do you want to strike the company off solely because of this grief or because of other reasons too? If the former as your posts suggest then I wouldn't say its a good reason to strike it off at all - just reason to get an accountant on board if you are unfamiliar with preparing company accounts