Owe CT but now dissolved.

[vino-vino-vino]

Hello,

Some advice would be greatly appreciated. Typing this via a touch screen so I am sorry in advance for poor writing!

I set up a ltd company as sole director for IT freelance work and started trading in May 2006. Signed up with one of the big accountancy firms in this field, traded happily and paid hmrc on time until 2012 when I decided to move to Australia.

Informed the accountant who set the closure in motion whilst I made the move. I wasn't the best with the numbers and was a bit shocked to find a final CT bill for over 20k.

I semi buried my head in the sand about this - could tell from companies house web check that hmrc were opposing the closure, and in the meantime I'd make adhoc payments to hmrc eventually bringing the debt down to around 20k. I finally spoke to my accountant April this year to say I'm having difficulty clearing the CT.

He advised to call hmrc and arrange an official repayment plan which I did - I paid 5k immediately over the phone via a personal credit card. I agreed to pay 1700 a month to clear the rest. When I sat down to look at the numbers (yes I should have done this before the call) I realised I had totally over committed. The exchange rate had gone south from my point of view, my wife had just lost her job and so our family income had just dropped. I called back the very next day and told them this. The guy on the other end of the phone didn't want to hear it - just told me to pay what I can and they'd be in touch.

A few days after the calls, my accountant got a letter (addressed to the company) from hmrc confirming the 1700 / month payment plan. Nothing else has come through and so from April I've been paying 200 a month and waiting.

Before paying this months instalment I checked companies house web check and was surprised to see that the company is now dissolved. The headline date says: Dissolved March 2014. If I drill down I can see that it says: Status: Dissolved first week of July 2014.

Question is - do I continue to pay back the 200 a month I'd found manageable? Is there any obligation to do so? I am kind of worried if I stop making this (albeit small) payment that they will come after me for more.

Thanks again for any advice.

 

[StevensOnln1]

The company no longer exists so therefore the debt to HMRC doesn't exist either. You are not personally liable so you have no obligation to pay anything.

 

[Alan R Price]

I agree.

 

[4R Business Recovery]

Agree to the above also

 

[vino-vino-vino]

Thanks for your responses above - it's quite reassuring to read them.

On the flip side, I just had a response from my old accountant who said that 'as you have set up a repayment plan, if you don't honour the plan then hmrc will hound you' - that's pretty scary to read.

Does he have a point? If I called up hmrc I guess they'd tell me to pay.

 

[Scalloway]

HMRC may hound you but just tell them that the company is dissolved. The debt is dead.

 

[vino-vino-vino]

Scalloway - thanks for the response.

As far as I am aware I've not agreed to transfer the debt to me personally and the payment plan confirmation was addressed to the company at the company address (registered at the accountants).

It does worry me that my accountant has said what he said - is there any reason to think that he has a point?

Thanks again - all the advice on this forum is very generous.

 

[4R Business Recovery]

It maybe worth contacting the HMRC and explaining the situation. They are after all human like all of us

Failing that get an expert involved to talk to them on behalf of you.

Kevin

 

[Scalloway]

By all means write to them but why bother to hire an expert? The company and its debts are dead and buried.

 

[vino-vino-vino]

Thanks for the continued interest in my post.

Would I write in a personal capacity? Or as the director? And is it a 'this is the law' type letter or a 'please leave me alone' tone?

 

[Scalloway]

I would say something like

Dear Sir
XX Co Ltd Reg No 99999 - dissolved

I wish to inform you that XX Co Ltd was dissolved by Companies House on March 2014. This means that any debts due by the company can no longer collected as it does not legally exist. Please do not contact me about the company's debts as I am unable to assist you further.

Yours faithfully

 

[Spongebob]

It does worry me that my accountant has said what he said - is there any reason to think that he has a point?

No.

Your accountant is an idiot. How can he possibly think that because as a director you entered into a repayment plan you assume personal liability for the debt?

Send a letter as Scalloway suggests and it will be an end to the matter.

 

[vino-vino-vino]

Spongebob and Scalloway - thanks for taking the time to help.

The letter sounds like the way to go - I'm going to ask a (probably) stupid question. Do I write this letter from me personally (and so provide my personal 'reply to' details), or use the dissolved companies registered details, or simply not bother with any details?