HMRC Applying for a winding up order. Should I act?

Discussion in 'Insolvency' started by MrDLee, Feb 4, 2019.

  1. MrDLee

    MrDLee UKBF Newcomer Free Member

    23 0
    History: The company has not traded for years. Accounts are not up to date, estimated VAT values have been put on and interest and penalties added year after year. Bank account was frozen/closed years ago, also with nothing in the account.

    Without abilty to pay for IP or for accountant to bring accounts up to date company has sat getting worse over time. Not sure how I'd prepare accounts either without access to any bank account, the final year it was trading accounts weren't prepared, since then it's been dormant. The debt was at £14K last time a couple of years ago. Confiramtionstatement has also not been filed for over 2 years.

    HMRC are the only creditors. Not sure about the bank. That may have gone in to an OD if they've been charging for it.

    For the last few years I have repeatedly sent DS01 and written to HMRC trying to volunatrily wind up the business. Every time they have blocked this, and written to say they will continue to do so until VAT/Tax brought up to date.

    Finally I have received a letter to say they are taking winding up action, with a statement now going up to £24000.

    I want the company wound up, this is what I have been trying to do for the last few years! So my question is should I do nothing now. My worry is that they will wind the business up then go after me personally. There is no DL. But with no accounts prepared for years I can't easily demonstrate this.
    Posted: Feb 4, 2019 By: MrDLee Member since: Apr 18, 2017
  2. Gavin Bates

    Gavin Bates UKBF Enthusiast Free Member

    636 124

    To be honest I would just let me pursue the winding up.

    Yes, you will have to deal with the official receiver at some stage but I don't see that this would cause you a problem.

    You can demonstrate that the company ceased a long time. Otherwise, you will have to spend money doing the accounts etc and then have it struck off anyway.

    I am a bit surprised that Companies House haven't already struck off given the time involved.


    Posted: Feb 4, 2019 By: Gavin Bates Member since: May 9, 2016
  3. MrDLee

    MrDLee UKBF Newcomer Free Member

    23 0
    What does this involve? Me attending some sort of meeting to answer questions? Am I going to have to prepare accounts for them etc!?
    Posted: Feb 4, 2019 By: MrDLee Member since: Apr 18, 2017
  4. Blaby Loyal

    Blaby Loyal UKBF Ace Full Member

    1,016 193
    You may have to attend the Official Receiver's office to provide details of the company's assets and liabilities and all that 'guff'. One of the benefits of government departmental cutbacks is that they may no longer have sufficient staffing to do this and so may do it all over the phone instead.

    If accounts were prepared or maintained for the periods when the company was trading then you should be OK. If they weren't then this is one of the things they love to pounce on to prove unfitness to act as a director. However, if you can come up with even a half-plausible excuse then that should fall away (e.g. HMRC debt has increased due to assessments when they knew company had ceased to trade - that kind of thing)
    Posted: Feb 4, 2019 By: Blaby Loyal Member since: Jun 12, 2018
  5. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,155 378
    I agree best to let HMRC get on with the winding up.

    You will then likely be interviewed by the Official Receiver who will initially be Liquidator.

    There will be an investigation into the cause of the demise and the Director/s conduct and whether there are any claims the Liquidator can pursue the Directors for personally.

    The most common issues will be overdrawn Director Loan Account/illegal dividends and/or illegal preferences.
    Posted: Feb 4, 2019 By: Lisa Thomas Member since: Apr 20, 2015
  6. Gavin Bates

    Gavin Bates UKBF Enthusiast Free Member

    636 124

    I have been out for most of today and it looks like some of the points have been covered.

    To add a bit extra, you don't need to produce accounts for the final period of trading but the OR would expect that you have the books and records for that period. As Blaby Loyal has mentioned they don't like it if you have no accounting records and as a company director, you have a duty to keep records for 6 years.

    Lisa has pointed out the issues that could commonly come up but these will all depend on how you ran the Company when it was trading.

    If you need any further information please let me know.


    Posted: Feb 4, 2019 By: Gavin Bates Member since: May 9, 2016
  7. Spongebob

    Spongebob UKBF Ace Free Member

    2,168 1,095
    In my experience the OR office are lovely to deal with. You will have to complete a questionnaire in advance of a meeting, which then basically consists of reviewing the questionnaire.

    Don't worry about accounts - simply take in everything you have in a big cardboard box. Invoices, bank statements, petrol receipts - the lot.

    This is a big deal to you - the company which has been your baby and which has dominated your life for years has died and is being put to rest To the civil servant sat across the desk from you however, you and your company are simply another in a long series of cases which he wants to close as quickly and straightforwardly as possible. You are unimportant to him.

    Make his life as easy as possible and you will in turn have an easy ride. He is on the lookout for crooks - be honest and open and make it clear that you are not a crook. Incompetent maybe, but not a crook.

    Good luck.
    Posted: Feb 6, 2019 By: Spongebob Member since: Dec 9, 2008