Problems with company strike-off

[BernhardtDav]

Hi! I want to strike off my Ltd (online shop) but I'm in a situation which I don't fully understand. A few months ago my business received orders from stolen credit cards for thousands of pounds, and the chargebacks and fees were more than what was on the balance of my merchant account, therefore it went into a negative balance. The merchant account was closed due to the number/volume of chargebacks. All of the chargebacks were declared lost long ago, at the end of June or around that time. Since then I've been waiting for the bank/merchant account or whoever to try to credit the company bank account for this money, or contact us to try to get their money, but nothing happened. Now in my accounts (I don't have an accountant) the "merchant account" balance is obviously showing a negative number because I recorded the chargebacks.
How do I go on with the process to try to strike off the company? Doesn't this negative balance counts as a kind of debt that should be paid before that? Or do I just go on and hope that HMRC doesn't care?

Thanks in advance

ps.: there are a few transactions that were made by the people with same or similar "names" and emails as those with the reportedly fraudulent transactions, but not chargeback request was made for them (even 3 months after them). Another issue I have is what happens if the account holder asks for a chargeback during the period between sending in the DS01 document and waiting for the strike-off?
ps 2: transactions such as paying for accounting software subscription, data protection fee, and obviusly paying out dividends before the theoretical strike-off don't count as "trading activity", right? Just to make sure.

 

[Lisa Thomas]

FYI You cannot pay a dividend if the company is insolvent.

You have suggested their may be a debt to HMRC?

 

[BernhardtDav]

FYI You cannot pay a dividend if the company is insolvent.

The company is not insolvent, as I said I’ve been waiting for them to try to deduct the amount from the company bank account or at leasts contact us for a transfer. There is more money in the bank account, than the negative balance of the merchant account. I don’t undertsand how I have suggested it, but there is no debt to HMRC. The question is: how do i handle this negative account balance in the books, if I want to close the company and there seems to be no intention from the bank to “recover” the amount of the chargebacks.

 

[Lisa Thomas]

I based the potential debt to HMRC on your comment: 'do I just go on and hope that HMRC doesn't care?'.

Does the company have accountants?

 

[StevensOnln1]

HMRC won't be interested if all returns are up to date and there are no outstanding tax debts.

 

[BernhardtDav]

I based the potential debt to HMRC on your comment: 'do I just go on and hope that HMRC doesn't care?'.

Does the company have accountants?

Oh, I get it. I meant that they won't care about the full accounting records etc., if they get their tax. No, I'm doing the accounting myself.

 

[BernhardtDav]

HMRC won't be interested if all returns are up to date and there are no outstanding tax debts.

Ok, thank you very much. One last thing: "ps 2: transactions such as paying for accounting software subscription, data protection fee, and obviusly paying out dividends before the theoretical strike-off don't count as "trading activity", right? Just to make sure." https://library.croneri.co.uk/cch_uk/btr/759-880
based on this I think they don't count as trading, but english is not my first language so I'm not sure.

Thanks in advance

 

[WaveJumper]

On what basis are you going to pay out dividends if the company has made no profit

 

[BernhardtDav]

From the profit made before the company stopped trading? Or is that not possible?

 

[Frank Wessely]

Technically it is but you should prepare or better still have an accountant prepare cessation accounts for the company with tax computations. So you can ensure that the profits are distributed in the most tax efficient manner. It may or may not be beneficial for you to consider a solvent liquidation and claiming Business Asset Disposal Relief.

Thanks.

 

[Lisa Thomas]

Not using an accountant is a recipe for disaster.

How much profit did the company make? How much have you drawn in dividends?