Spongebob letter for strike off and HMRC

Discussion in 'Insolvency' started by PDM31, Jan 27, 2020.

  1. PDM31

    PDM31 UKBF Contributor Free Member

    76 2
    When using the spongebob letter for striking off a company, would you also send it to HMRC if you owed them money for VAT and Corp tax?
     
    Posted: Jan 27, 2020 By: PDM31 Member since: Jul 10, 2018
    #1
  2. KAC

    KAC UKBF Ace Free Member

    1,195 269
    Yes
     
    Posted: Jan 27, 2020 By: KAC Member since: May 7, 2017
    #2
  3. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

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    Yes all creditors need to be sent notice. Also best to send via recorded post t prove it was sent.
     
    Posted: Jan 28, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #3
  4. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

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    Posted: Jan 28, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #4
  5. PDM31

    PDM31 UKBF Contributor Free Member

    76 2
    Ok, but what about if i need to wait another 2 months because the company traded in December?
    Do i still send the letter now? Or do i just ignore the payment reminders and send at the end of March?
     
    Posted: Jan 28, 2020 By: PDM31 Member since: Jul 10, 2018
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

    22,765 2,737
    Yes send letters now.
    It's the DS01 you cannot start doing just yet.

    Informing creditors now of being unable to pay is simply being courteous.
    Do not expect creditors to stop contacting you. Until company is dissolved.
     
    Posted: Jan 28, 2020 By: Mr D Member since: Feb 12, 2017
    #6
  7. Spongebob

    Spongebob UKBF Ace Free Member

    2,211 1,117
    The main point of the Spongebob letter is to demonstrate conclusively that the directors have fulfilled their obligation in law to cease trading as soon as they know that the company is insolvent. Their other primary obligation is to treat all creditors equally - therefore is is essential that all creditors receive the letter.

    A welcome side-effect of the letter is that many creditors call off the dogs as they have no wish to throw good money after bad, but fundamentally it is an arse-covering exercise. If a liquidator is ever appointed they are unlikely to accuse the directors of trading while insolvent if the letters are on file.

    Send the letters immediately the company ceases trading. The 3 month period applies only to the submission of a DS01 to apply to have the company dissolved.
     
    Last edited: Feb 1, 2020
    Posted: Feb 1, 2020 By: Spongebob Member since: Dec 9, 2008
    #7