Late filling - Compulsory strike-off notice

Discussion in 'Insolvency' started by Jamesales, Jan 25, 2018.

  1. Jamesales

    Jamesales UKBF Newcomer Free Member

    10 0
    It seems I haven't been looking after my LTD very well in the UK as I've been living abroad for the last 2 years trying business here, which has survived ok, but mostly keeping head above water.

    My accountants only just notified me of late filing. Lets just say he hasn't been all that helpful in the last 12 months as I still owe him money sadly which I'm only now able to settle, so I don't blame! The company hasn't traded in well over 14-18 months but still owes £5000 to HMRC from year 2015-2016.

    I'm the only director, no other creditors, no assets, business bank account £50 overdrawn.

    I have been issued with a First Gazette notice for 'compulsory strike off'

    What legal ramification's do I face? Should I contact HMRC to work out a payment plan and make the company dormant for now as I may need a LTD for later this year when I return back to the UK?

    Any advice would be very helpful! As sadly my financial situation isn't great at present, though I do have a very good opportunity coming up this year in London to get back on track again where I will need a limited company!

    Thanks in advance !
     
    Posted: Jan 25, 2018 By: Jamesales Member since: Oct 22, 2014
    #1
  2. Spongebob

    Spongebob UKBF Ace Free Member

    2,108 1,067
    If you do nothing the company will in all probability be struck off and cease to exist. The debt to HMRC will die with it.

    It is possible that HMRC might object to the striking off, in which case you may need to reconsider your options. However, it would seem sensible to wait and see if this happens or not.

    As for your requirements for a company later in the year, a new one can be formed for a few quid.

    There is scope for Companies House to fine directors personally for non submission of the Confirmation Statement, but this rarely happens and not generally in a minor routine case such as yours.
     
    Posted: Jan 25, 2018 By: Spongebob Member since: Dec 9, 2008
    #2
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  3. Jamesales

    Jamesales UKBF Newcomer Free Member

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    Hi Spongebob, thanks for the reply.

    I contacted a company experienced in debt arrears and owing HMRC. They said that allowing a company to be dissolved (struck off) with debt (assuming the petition for compulsory strike off has occurred for non-filing of documents to Companies House) certainly leaves the director open for both liability of debt and potential criminal proceedings and further uncapped fines.

    This all has me quite worried. Do you think its sensible to wait until HMRC object to striking off?
     
    Posted: Jan 25, 2018 By: Jamesales Member since: Oct 22, 2014
    #3
  4. Newchodge

    Newchodge UKBF Big Shot Free Member

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    And how much did this company want from you to put it right?

    Unless this is the 10th time you have done it, while what they say is technically true, it is not what happens in the real world. Do nothing, see what happens.
     
    Posted: Jan 25, 2018 By: Newchodge Member since: Nov 8, 2012
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

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    Read through the insolvency forum, don't think you'll find that happening to small company directors. Big company where you fiddle the VAT to the tune of hundreds of thousands then pretty much yes. Small company where mistakes maybe happened but no criminal intent? Don't think you can find that happening to anyone who has posted.
     
    Posted: Jan 25, 2018 By: Mr D Member since: Feb 12, 2017
    #5
  6. Spongebob

    Spongebob UKBF Ace Free Member

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    They sound like a bunch of charlatans who prey on people's innocence and ignorance to extort money by planting fear. There are many such outfits around - some of them registered Insolvency Practitioners.

    I would recommend doing absolutely nothing for now. Review your options if HMRC object to the striking off. My bet is that they won't.

    If the company is struck off the debt to HMRC will die with it. You will not face any sanctions and you will not be found personally liable. For that to happen HMRC would have to have the company reinstated and then liquidated. The liquidator would have to find that you were guilty of malpractice.

    It isn't going to happen - it would cost HMRC considerably more than £5k to do it with no guarantee of getting any money back.
     
    Posted: Jan 25, 2018 By: Spongebob Member since: Dec 9, 2008
    #6
  7. Simon Green

    Simon Green UKBF Contributor Free Member

    98 8
    I am always trying to be fair to other people just as I wish them to be fair when dealing with me; that’s why I am happy to share with you all my personal experience as follows:
    When I have spoken to or contacted insolvency practitioners they have done to me exactly what Spongebob has talked about and pointed out; they try to put the fear of God into you which to my mind is NOT at all fair. In particular they are absolutely adamant that HMRC will not allow dissolution in a case like the one at the beginning of this thread.
    You have my word that I followed the spongebob formula exactly as originally laid down and formulated by Spongebob and on the first attempt Company’s House dissolved my company without any objection from HMRC or other possible objections.
    The original question and thread that I posted back in December 2017 related to the personal tax implications regarding the DLA. Subsequent to this and despite some talk of me finding myself behind bars I have come to the conclusion that not all contributors and participatory on this forum are fair, but thanks again Spongebob for being non-judgemental and helpful and fair, and I sincerely hope helpful to others just like me.
     
    Posted: Jan 25, 2018 By: Simon Green Member since: Dec 4, 2017
    #7
  8. Spongebob

    Spongebob UKBF Ace Free Member

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    Thank you Simon.

    The Spongebob Plan will not always result in the company being struck off by Companies House. Sometimes a creditor (normally HMRC) will wind the company up resulting in a compulsory liquidation. Either way though, a dissolution is achieved without the expense of an Insolvency Practitioner.

    The Spongebob Plan makes it possible for directors of insolvent companies without the means to appoint an IP to bring about a dissolution lawfully and properly.
     
    Posted: Jan 26, 2018 By: Spongebob Member since: Dec 9, 2008
    #8
  9. Gavin Bates

    Gavin Bates UKBF Regular Free Member

    383 73
    Hi

    I wanted to add some comment to those above. As discussed it does seem that the best thing to do is to allow the strike off to continue.

    It is, however, standard policy for HMRC to object where they are owed money. That doesn't mean that over time the Company won't be struck off.

    Two points, first, it is isn't a perfect system so it always possible that HMRC miss it and so the strike goes through anyway.

    Second, even if they do strike it off it does mean they will apply for a compulsory liquidation and sooner or later Companies House will take action to strike the Company in any event.

    I would like to highlight that the advice given above was from a 'company experienced in debt arrears and owing HMRC' and there was no suggestion that was from an IP. There are a number of these firms out there and most are no in any way insolvency practitioners

    I wish I could say that all IP's are good, but like all professions or trades, there are the good, bad and ugly. However, as someone who posts regularly on here, I hope my advice is always seen as fair, as can be seen above.

    Regards

    Gavin
     
    Posted: Jan 26, 2018 By: Gavin Bates Member since: May 9, 2016
    #9
  10. Simon Green

    Simon Green UKBF Contributor Free Member

    98 8
    Thanks Gavin;
    I do always feel your objective based on the information provided and not judgmental
     
    Posted: Jan 26, 2018 By: Simon Green Member since: Dec 4, 2017
    #10
  11. Spongebob

    Spongebob UKBF Ace Free Member

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    Periodically posters turn up on this forum spouting judgmental nonsense about people in severe financial difficulties "only having themselves to blame" or "neglecting their duties as a company director". Happily they tend not to last long.

    How someone got into difficulties is irrelevant as far as I'm concerned - unless they have clearly been deliberately dishonest. All that matters to me is giving practical advice that enables them to rectify the situation as far as is possible.
     
    Posted: Jan 27, 2018 By: Spongebob Member since: Dec 9, 2008
    #11
  12. Simon Green

    Simon Green UKBF Contributor Free Member

    98 8
    Thank you Spongebob
     
    Posted: Jan 27, 2018 By: Simon Green Member since: Dec 4, 2017
    #12
  13. Jamesales

    Jamesales UKBF Newcomer Free Member

    10 0
    Thank you everyone I appreciate your advice. The company will be struck off the register by the end of March.

    HMRC have sent me 2 penalty letters for late self assessment last week. 1 for year end April 2017 and 1 for year end April 2018. Do these penalties die with the company? Or do I have to pay these penalties and submit personal tax returns. The company stopped trading in April 2016.
     
    Posted: Mar 2, 2018 By: Jamesales Member since: Oct 22, 2014
    #13
  14. KAC

    KAC UKBF Enthusiast Free Member

    848 188
    You can't have a penalty notice for 2018 as return isn't due until 2019. These penalties won't die with the company as they are personal penalties.

    Get a move on and get your tax affairs up to date as penalties will only increase
     
    Posted: Mar 2, 2018 By: KAC Member since: May 7, 2017
    #14
  15. Gavin Bates

    Gavin Bates UKBF Regular Free Member

    383 73
    Hi

    As above self assessment is about and not the Company so will have to deal with them.

    Gavin
     
    Posted: Mar 2, 2018 By: Gavin Bates Member since: May 9, 2016
    #15
  16. Simon Green

    Simon Green UKBF Contributor Free Member

    98 8
    Absolutely, self-assessment relates directly to you as an individual and NOT the company.
    HMRC love adding penalties for late self-assessment so now really is the time to get things sorted.
    Believe me chum, penalties can/will exellorate if left as an un-opened brown envelope.
     
    Posted: Mar 3, 2018 By: Simon Green Member since: Dec 4, 2017
    #16
  17. Mr D

    Mr D UKBF Legend Free Member

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    Self assessment as I recall charges £10 a day for late returns and has a point whereby they start adding lump sums.
    And as has been said its not the company's debt. Its yours.
     
    Posted: Mar 3, 2018 By: Mr D Member since: Feb 12, 2017
    #17
  18. Simon Green

    Simon Green UKBF Contributor Free Member

    98 8
    Yes, the greatest source of penalties/fines/late payment daily interest with regard to Personal Self-Assessment is late returns; HMRC love to add on the daily penalties as well as the automatic £100 fine for the first 3 months of late return.
    Most importantly the clue as they say, really is in the Title - Self-Assessment :
    Believe me chum, its in your very best interests to get these self-assessment returns in Now.
    I have an ex-work colleague who is facing hundreds of pounds for the late filling element alone.
     
    Posted: Mar 3, 2018 By: Simon Green Member since: Dec 4, 2017
    #18
  19. Jamesales

    Jamesales UKBF Newcomer Free Member

    10 0
    Ok this has now been sorted today thanks all.

    One last question - my company will be struck off the register in exactly in 3 weeks. I'm returning back to the UK next month to get going in business again in London with a friend who already has his own limited company. If we both set up a new limited company together whilst my old one is being struck off - will companied house reject the application potentially?
     
    Posted: Mar 4, 2018 By: Jamesales Member since: Oct 22, 2014
    #19
  20. Mr D

    Mr D UKBF Legend Free Member

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    No.
    Unless you get banned from being a director (which takes an investigation and some effort it appears) then you can be a director of another company.
    There are a few you may occasionally come across with a half dozen companies struck off and new ones set up.
     
    Posted: Mar 4, 2018 By: Mr D Member since: Feb 12, 2017
    #20