Company Strike Off Suspended - What Next?

[blackswan23]

Hi all, last year I ceased trading for my limited company. I did owe HMRC £5000 for corporation tax as my accountant filed it even though I made it clear when I was going to be ceasing trade, she effectively put me £5000 in debt, which she admitted could have been avoided in hindsight. My accountant sought out advice and was informed the best thing to do was to walk away and it would eventually get struck off, HMRC would most likely object but not chase such a small amount. Now a year later I have received a notice that my company strike off has been suspended. My question is, is this indefinite? Do I need to apply again or am I simply best to leave it alone and it will eventually get struck off?

I also have some money in my business account that I haven't touched in worry it will follow me, do I leave it in the account or can I move it safely.

And to be clear the business has no assets, no means to pay and has not traded in more than a year now. The money that is left is nowhere near enough to cover the debt.

Sorry if I missed anything else important, I'm way over my head with this as it was my first business venture.

I would appreciate any advice.

 

[Ziggy2024]

Your accountant didn't put you in debt. You owed the money to HMRC regardless of whether the CT return was submitted or not.

If you have a debt then you also have a corresponding asset, do you have a director loan? All things being equal £5k equates to around £27k profit. Where did the profit go?

To answer the specific question companies seem to be in limbo at the moment just waiting to be struck off. I thought it was mainly companies that had bounce back loans but maybe it is all companies. All you can do is wait really.

 

[Lisa Thomas]

Hello

Yes - HMRC will automatically have objected to the strike off due to outstanding debt and (if relevant outstanding final tax returns)

You say the company has no assets but that it has cash in a bank account - how much is it?

I'd be wary about taking insolvency advice from your accountant unless they are licensed insolvency practitioners.

It's possible that dissolution is the right route for you but you should confirm that. Doing nothing is also still not the best thing to do as regards dissolution - they is a proper procedure to be followed:

Guidance for limited companies, partnerships and other company types

Guidance about registering, filing and disclosing information with Companies House.

www.gov.uk

 

[UK Contractor Accountant]

I also have some money in my business account that I haven't touched in worry it will follow me, do I leave it in the account or can I move it safely.

You can move it safely to your creditors - HMRC and any others pro rata to their size of debt.

 

[Lisa Thomas]

OP has referred to a DLA. I suspect they want to pay the funds back to themselves.

 

[UK Contractor Accountant]

OP has referred to a DLA. I suspect they want to pay the funds back to themselves.

hmm cant see that - think OP removed it!

 

[Elliot Green]

You can anticipate HMRC have objected to the striking off of the company in all probability. If it was HMRC that objected then notwithstanding the small debt, it is not inconceivable the company might be placed into Compulsory Liquidation.

 

[Elliot Green]

You can move it safely to your creditors - HMRC and any others pro rata to their size of debt.

Appreciate the debt is modest. However, this is a company that appears to be teetering on the brink of liquidation. In such an instance there is a statutory order of payment in insolvency proceedings and the approach where a director does a quasi DIY liquidation has some risk.

It is perhaps better to avoid usurping the insolvency regime and leaving the money for the Official Receiver's fees and any surplus to be deployed accordingly.

 

[Ziggy2024]

hmm cant see that - think OP removed it!

There was no mention of a DLA in the OP. A DLA was referred to in my post asking what the opposite entry of the CT creditor was.

 

[Lisa Thomas]

hmm cant see that - think OP removed it!

You are right, I cannot see mention of that now. I'm sure there was mention that they themselves were a creditor. Must be mixing it up with another post, or the original post has been edited. Apologies for any confusion.

 

[UK Contractor Accountant]

sure there was mention that they themselves were a creditor.

think i recall that as well - think it may have been changed when pointed out as there was a CT debt there must be a corresponding debt due to the company from the Director.

 

[Lisa Thomas]

Maybe OP can clarify...