Tax - and penalities as a limited liability company in the UK

[sikandra789]

Hi, I made a limited liability company and registered it in the Uk.

However I did not know which taxes are due when so when I began receiving notices to file company returns I did, however in the meantime I decided I did not need my company anymore so I filed to close it, how after sending in the closing notice I received a penalty notice of amount 750 pounds as a penalty for late filing of my company accounts. But after writing to companies house, they told me that the penalty would lapse if the company was closed.

So that is one question I need your answer to, i.e. will it really lapse?

Secondly after I sent in the notice for my company to me closed, I received a second letter form HRMC that I need to pay a 100 pound penalty for the late payment penalty again that corporation tax that was due. now I don't understand what corporation tax I owed since I did not trade or make any profit during my company's existence. They have asked me that I can appeal this but I don't know what to appeal since they also say we should make the payment for the actual corporation tax first and then appeal the penalty.

But I don't know what or if any payment is due for my corporation tax, even if my company was active. So kindly help me work this out. The fact that I am out of the Uk and have no understanding of these taxes also make it harder given the 25th August 2022 appeal deadline is right on top of me and I have passcode related issues as well that I have the to match the time zone (I live elsewhere) so I can access the government gateway etc.

Please guide.

Best,
Sikandra

 

[ChrisCallaghan]

Hello Sikandra,

To help us to answer your question, can you confirm if your company setup was limited/Ltd?

Also in your post you advise that you 'filed to close it' - specifically do you mean you applied to dissolve/strike off your company? If so has this now gone through?

 

[MikeJ]

Hi, I made a limited liability company and registered it in the Uk.

It's in the first line...

 

[MyAccountantOnline]

Hi, I made a limited liability company and registered it in the Uk.

However I did not know which taxes are due when so when I began receiving notices to file company returns I did, however in the meantime I decided I did not need my company anymore so I filed to close it, how after sending in the closing notice I received a penalty notice of amount 750 pounds as a penalty for late filing of my company accounts. But after writing to companies house, they told me that the penalty would lapse if the company was closed.

So that is one question I need your answer to, i.e. will it really lapse?

Secondly after I sent in the notice for my company to me closed, I received a second letter form HRMC that I need to pay a 100 pound penalty for the late payment penalty again that corporation tax that was due. now I don't understand what corporation tax I owed since I did not trade or make any profit during my company's existence. They have asked me that I can appeal this but I don't know what to appeal since they also say we should make the payment for the actual corporation tax first and then appeal the penalty.

But I don't know what or if any payment is due for my corporation tax, even if my company was active. So kindly help me work this out. The fact that I am out of the Uk and have no understanding of these taxes also make it harder given the 25th August 2022 appeal deadline is right on top of me and I have passcode related issues as well that I have the to match the time zone (I live elsewhere) so I can access the government gateway etc.

Please guide.

Best,
Sikandra

Did your company trade or earn any income?

 

[MrGerbil]

Appoint an accountant and sort this out properly.

 

[Frank Wessely]

Appoint an accountant and sort this out properly.

An accountant should have been engaged at the outset.

Thanks.

 

[kulture]

Whilst it is true that an accountant should have been appointed and thus avoided all these problems, the first question that needs to be answered before doing anything else is whether the company still exists. If it has been disolved then the debts died with it and thus there is no further action.