Company that never traded

[afamilyfriend]

Just after some advice for myself. I incorporated my company in mid 2021 with the intention to start trading, but never did. I never filed my confirmation statement, or any accounts. I opened a business bank account, but never even set up PAYE. It was just an idea I had that I never actually executed for a multitude of reasons. On Companies House it says compulsory strike off in July 2022 and then strike off suspended in August 2022. Who could be objecting the strike off? Hesitant to call Companies House and ask as I know I'll get in trouble for never filing anything.

 

[StevensOnln1]

Just call Companies House and ask. You won't be in any trouble and any penalties for failing to file accounts or confirmation statement will be issued against the company rather than you personally. Chances are it'll be HMRC objecting as no returns have been filed so they don't know if any tax is due. If you don't want the company, write to HMRC to inform them that the company never traded and has no funds to pay for accounts or tax returns to be produced. Eventually they'll either withdraw their objection or Companies House will overrule them and the company will be struck off, with any non-filing penalties dieing with it.

 

[afamilyfriend]

If you don't want the company, write to HMRC to inform them that the company never traded and has no funds to pay for accounts or tax returns to be produced. Eventually they'll either withdraw their objection or Companies House will overrule them and the company will be struck off, with any non-filing penalties dieing with it.

But won't I have to prove that I never traded? How do I do this? Like I said I opened a business bank account but then never even ended up trading. I'm worried they'll have a lot of questions for me and my only answer is really "I got ahead of myself thinking I was going to start this company then life got in the way and it was no longer something I could commit my time to'

 

[StevensOnln1]

You won't have to proove that you didn't trade and you're very unlikely to have to answer any questions. HMRC don't have the resources to investigate every company that closes without filing any tax returns and Companies House won't be interested at all.

 

[Daybooks]

As you are probably now realising your duties as a director commence when you incorporate a company not when you choose to start trading.

The solution largely depends on whether you want to keep the Company. If you do then you must file the set of accounts - even if they are a dormant set of accounts - and pay the penalties that will be imposed immediately after you make the filing.

If you no longer want the Company then allowing it to be stuck off may be the best route. If HMRC are objecting - as without a set of accounts and a tax computation there may well be unpaid taxes due - then you need to resolve this. The easiest way is to complete the corporation tax return along with the set of accounts as needed. These are filed with HMRC only. Do not file the accounts at Companies House unless you are prepared for the penalties that will automatically follow. With a corporation tax return and accompanying accounts HMRC may then not oppose any strike off - but they do tend to operate as a law unto themselves.

You may then want to apply for a voluntary strike off to get the process rolling sooner. You are required to advise any creditors of your intention. Obviously there shouldn’t be any if it has always been dormant. A letter to HMRC advising them, even though there is no liability with them may of course, now and previously, avoid their objections.

 

[afamilyfriend]

Saw today on my banking app that the business account was no longer showing, so went onto companies house and it seems that the company has been dissolved! Didn't need to end up doing anything