How to close Ltd company owing VAT & Corp Tax

[onlineshop1]

I've seen similar questions but here is our scenario which i'm hoping someone will be able to offer some advice on.

We need to close our Ltd company but currently owe £9k in VAT across last 3 VAT returns which we haven't paid. We will also owe £2k in January corporation tax.

We have an estimated £2-3k stock and a web site which is functional as assets.

Our O/D is -£10k and we are personally liable for this.

The web site is now not making enough sales to continue and despite our best efforts we've been unable to improve this.

We are now at a stage where our accountant suggested an insolvency practioner to close the business and sell the assets (although they are minimal). I called the IP and they told me that it'd cost £4k in fees to do this and as already explained we do not have £4k otherwise we'd have paid some of the VAT!!

Can anyone offer any suggestions or advice on what we should do next. I read that completing a DS01 form would be illegal because of the outstanding debts with VAT and Corp Tax.

Any suggestions/advice greatly appreciated.

 

[Alan R Price]

I've seen similar questions but here is our scenario which i'm hoping someone will be able to offer some advice on.

We need to close our Ltd company but currently owe £9k in VAT across last 3 VAT returns which we haven't paid. We will also owe £2k in January corporation tax.

We have an estimated £2-3k stock and a web site which is functional as assets.

Our O/D is -£10k and we are personally liable for this.

The web site is now not making enough sales to continue and despite our best efforts we've been unable to improve this.

We are now at a stage where our accountant suggested an insolvency practioner to close the business and sell the assets (although they are minimal). I called the IP and they told me that it'd cost £4k in fees to do this and as already explained we do not have £4k otherwise we'd have paid some of the VAT!!

Can anyone offer any suggestions or advice on what we should do next. I read that completing a DS01 form would be illegal because of the outstanding debts with VAT and Corp Tax.

Any suggestions/advice greatly appreciated.

I am an IP and believe me, on the facts you've stated, you don't need one of us! The fact the company may have debts does not prevent you from applying for voluntary striking off - there is a procedure to be followed for notifying creditors. Check out "Spongebob Plan" on here.

 

[Paul_Rosser]

As Alan said the spongebob plan is probably your best option, it can be found here -

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=268551

 

[onlineshop1]

Thanks - i'll take a look at that.

 

[onlineshop1]

As Alan said the spongebob plan is probably your best option, it can be found here -

In our case the debt is only VAT and Corp Tax. Suppliers are not owed anything. Do we need to send the suggested template letter to HMRC VAT and Corp tax departments prior to completing a DS01?

 

[Scalloway]

I would recommend sening Spongebob's letter.

 

[Spongebob]

Simply send out the following letter to all creditors.



Then send off a DS01 to Companies House.

If HMRC object to the striking off simply apply again, and again, until HMRC take action to wind the company up or CH overrides their objection because of their failure to take such action.