Jump to content


  • Tweets

  • Posts

    • Hello, I am a private seller and recently sold a pair of trainers on eBay.  Everything seemed fine until just after the eBay 30 day mbg had expired.  The buyer contacted me with photos showing me that both shoes had ripped.  He wanted his money back, and after refusing to refund him, he then left me retaliatory and defamatory feedback on my profile to the effect that I had sold him fake trainers (this was removed by eBay).  He then initiated a chargeback via Paypal.  Invariably, the outcome was in his favour, and I have now been charged for the cost of the trainers.  I would have also been stung for the chargeback fee, but eBay refunded this.  Incidentally, I do have the email receipt of the trainers from when I bought them from a well-established and bona fide online retailer.  The susbequent conversation with eBay followed its predictable course, i.e. the chargeback is out of their hands etc. I have been in contact with citizens advice, and my bank.  Citizens advice told me that as a private seller I'm responsible for the "Title and description" of the goods, but not the performance, or the fitness for purpose.  To me it is clear; if you receive something that's not as described, you don't then use the goods, and more than 30 days later claim 'not as described'.  In my mind, this makes the claim fraudulent.  He's used the 'they're fake' card to give credence to a 'not as described' claim here, obviously, without any evidence.  My understanding is that the chargeback is unlawful, because the trainers were shipped as described.  However, I read something on an eBay forum regarding sellers having no statutory rights, i.e. no right to appeal against a chargeback decision, or to complain to the financial ombudsman.  Does this mean that if my bank disputes the charge on my behalf, it will be to no avail, even if it's recognisably a fraudulent chargeback?  I have reported it via the Actionfraud website. Any advice, anyone?  Would be most grateful!
    • Thank you, I have drafted my letters and started to complete the reply form, printed from this site and not using the one they provided.    2 questions, on the forum link it says to tick box D & I, the reason for box D will be given on my thread, what would my answer be to "I dispute the debt"?  Do I send anything for the Vodafone debt they have included?  I've only done 118 loan s. 77 & capital one credit cards so. 78    Thank you  
    • It'll be something to the effect of:  "I am in receipt of your letter before claim.  I was awaiting a passenger as a licensed cab driver on the Locton estate who subsequently cancelled the pickup after me waiting a while and will fight this in the small claims court if necessary. Plus I have friends who are experts in contractual law and make it their business to defeat these spurious PPC claims.  So issue the claim form or go forth and multiply, up to you"
  • Recommended Topics

  • Our picks

    • If you are buying a used car – you need to read this survival guide.
      • 1 reply
    • Hello,

      On 15/1/24 booked appointment with Big Motoring World (BMW) to view a mini on 17/1/24 at 8pm at their Enfield dealership.  

      Car was dirty and test drive was two circuits of roundabout on entry to the showroom.  Was p/x my car and rushed by sales exec and a manager into buying the mini and a 3yr warranty that night, sale all wrapped up by 10pm.  They strongly advised me taking warranty out on car that age (2017) and confirmed it was honoured at over 500 UK registered garages.

      The next day, 18/1/24 noticed amber engine warning light on dashboard , immediately phoned BMW aftercare team to ask for it to be investigated asap at nearest garage to me. After 15 mins on hold was told only their 5 service centres across the UK can deal with car issues with earliest date for inspection in March ! Said I’m not happy with that given what sales team advised or driving car. Told an amber warning light only advisory so to drive with caution and call back when light goes red.

      I’m not happy to do this, drive the car or with the after care experience (a sign of further stresses to come) so want a refund and to return the car asap.

      Please can you advise what I need to do today to get this done. 
       

      Many thanks 
      • 81 replies
    • Housing Association property flooding. https://www.consumeractiongroup.co.uk/topic/438641-housing-association-property-flooding/&do=findComment&comment=5124299
      • 161 replies
    • We have finally managed to obtain the transcript of this case.

      The judge's reasoning is very useful and will certainly be helpful in any other cases relating to third-party rights where the customer has contracted with the courier company by using a broker.
      This is generally speaking the problem with using PackLink who are domiciled in Spain and very conveniently out of reach of the British justice system.

      Frankly I don't think that is any accident.

      One of the points that the judge made was that the customers contract with the broker specifically refers to the courier – and it is clear that the courier knows that they are acting for a third party. There is no need to name the third party. They just have to be recognisably part of a class of person – such as a sender or a recipient of the parcel.

      Please note that a recent case against UPS failed on exactly the same issue with the judge held that the Contracts (Rights of Third Parties) Act 1999 did not apply.

      We will be getting that transcript very soon. We will look at it and we will understand how the judge made such catastrophic mistakes. It was a very poor judgement.
      We will be recommending that people do include this adverse judgement in their bundle so that when they go to county court the judge will see both sides and see the arguments against this adverse judgement.
      Also, we will be to demonstrate to the judge that we are fair-minded and that we don't mind bringing everything to the attention of the judge even if it is against our own interests.
      This is good ethical practice.

      It would be very nice if the parcel delivery companies – including EVRi – practised this kind of thing as well.

       

      OT APPROVED, 365MC637, FAROOQ, EVRi, 12.07.23 (BRENT) - J v4.pdf
        • Like
  • Recommended Topics

Need to strike off business, tax outstanding- Pls Help!


style="text-align: center;">  

Thread Locked

because no one has posted on it for the last 4142 days.

If you need to add something to this thread then

 

Please click the "Report " link

 

at the bottom of one of the posts.

 

If you want to post a new story then

Please

Start your own new thread

That way you will attract more attention to your story and get more visitors and more help 

 

Thanks

Recommended Posts

Hi everyone.

 

I was working as a contractor last year, and was persuaded to set up my own PLC to do this, as the tax is less than going through PAYE. Fairly normal. I chose an online accountant recommended by a friend, but to be frank, they have been utterly useless, and aside from pinging back tax return figures to me every three months, they have done little to earn their monthly payment.

 

In October last year, I discovered my partner was having an affair, so I booted him out, but was left in charge of our property and our child. I lost my contract a month later (having been told it would be extended for another 3 months) as the project folded. At this point, due to the lack of advice from teh accountant, I did not have enough put away to pay all the tax up to date, or face the corporation tax bill which I know will hit me this winter (I estimate about £10,000). I had started to rectify the situation, and had £8000 put away, and I paid my VAT return for that quarter, but due to the situ with my partner, I had no choice but to use the company money as dividends to pay for rent on the house, bills, food, childcare, and ultimately a house move, as I found another job in another area.

 

The new job was perm, so was barely covering living costs, and I have looked for another contract, but simply cannot find one to fit around my childcare situation. I have now given up trying to rectify things, and after speaking to a charity who advise on such things, was told that I need to have the company struck off. Things moved on before I could apply for strike off, and of course the Revenue are saying they won't allow it to be struck off until all my taxes are paid to date. I'm living on income support now, so there is no chance of that. I am struggling to make ends meet as it is. I am trying to start another business so that I can come off benefit, as I am a hard worker and hate being in this situ, but I am desperate not to be made bankrupt, as being a single mum, if I lose my tenancy on this house I will never be able to rent privately with a bankruptcy on file, as agents regard that as a clear no no. I do not want to end up in a hostel or a council property here.

 

Anyway. I have tried to find out what exactly I need to do to a) close the company down b) sort out my tax situation (VAT, Corporation, and personal tax), but I keep being told different things. I am terrified of the Revenue, I know several people who have had their lives basically destroyed by them, but am also aware that a PLC is supposed to be able to be it's own entity and be dissolved. I need to know if, having sorted the above out, will it affect me ever being able to be a Company Director or own a company again? A lady at the VAT office said I would never be allowed to be a Director again, but that sounds totally Draconian, especially in a recession where I bet many people, who are essentially honest and hard working are finding their businesses folding despite their best efforts.

 

Please please help, I am so confused, and I just need some solid, reliable advice. I used this site some years back with some personal debt issues, and it was amazing, totally changed my entire approach, and I avoided bankruptcy. I have been patiently waiting for 4 years for my credit record to start clearing, so I can look to the future regarding buying a house etc, and then this hits me. I am petrified about being made bankrupt or having to wait another 6 years. It just seems so unfair.

 

Any advice or links to info would be appreciated- I have done some research myself obviously, but the smoke and mirrors of the tax system is making it hard to know what to do.

 

Thank you!

Link to post
Share on other sites

  • Replies 51
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

OK, I am guessing tat this was not a PLC but a Ltd Company (doesn't actually make much difference in this situation).

 

The Ltd Company can be sortedd out relatovely easily. You need to write to all creditors stating that the Company has ceased to trade and has insufficient funds to appoint a Liqudato and invite them to issue winding up proceedings themselves. If the Company is not subjet to winding up proceedings state that you intend to apply for a strike off after three months from the date of the letter under s1003 of the Companies Actr. From what you have said it seems HMRC are the only creditor.

 

As you have been advised HMRC will probably object to the strike off but it is important that you send this letter to creditors because when they object you can show Companies House copies of the letters you have sent. Companies House should then let the strike off go through.

 

If Companies House still do not allow the strike off do not worry. DO NOTHING. Do not correspond with HMRC and they will eventually issue a winding up petition against the company. Do not object to this and let it go through and the Liquidation will be passed to the Official Reciever where you will have to attend an interview to explain the reasons for the insolvency of the Company.

 

This will mean that the debt owed to HMRC by the Company will be written off. However, the one part of your post that did concern me was that you said you paid yourselves dividends to pay yourself. Was the Company profitable when these dividends were declared? If not they will be classed as an illegal dividend and if it is picked up by the OR you may be asked to pay it back.

 

With regards to the Director Disqualification. Thsi is down to a D1 report that will submitted to the DTI (as was) by the OR. The HMRC debts are not large and if this is your first liquidation you should be alright in this regard and should not face a disqualification.

 

With regards to personal Tax debts you will still have to deal with these and it would be best to try and come to a repayment plan with HMRC.

 

The alternative to sorting out the Ltd Company is to pay a Insolvency Practitioner about £3k + Vat to deal with it for you and cut out the OR.

 

If you need any further advice or clarification just let me know

Link to post
Share on other sites

  • 1 month later...

I had my own Limited Company for 14 years and had to voluntarily liquidate it 20 months ago due to no new contracts coming forward, there was only really me employed, I paid a Sheffield Company, Wilson Field £5.5K for the privelige, no creditors turned up at the meeting, owed HMRC about 21K in Vat and Corp tax. 14 months later my second Company then got liquidated by a supplier when we could no longer pay our bills due to other companies going bust.No fault of our own.

The Official Receiver was put in charge of this one and I was interviewed for about 2 hours and it was recorded, the OR said I would not hear from him again ?.

I had heard nothing about my voluntary liquidation until a month after this interview, then the Liquidator, Wilson Field, I had paid £5.5K to sends a letter from their Solicitors HLW asking me to explain dividends and payments over the last 6 years. They say I owe £130K for taking dividends when there was no profit. I had a firm of Chartered accounts look after both companies and only took what I was told, they submitted the accounts every year. They now want me to answer their questions which I cannot do as they have all the documents and am not an Accountant and my Accountants will not travel to the liquidators unless I pay them £2K ? Surely if there are questions to be asked about the finances the Accountants should explain ?

I haven't heard from the OR about the second company but am now worried that the simple voluntary liquidation is going to send me to jail or something. I am no longer a Director of any companies and now have a PAYE job, I would never want to be involved in a self employed way again.

On top of this I have 3 months mortgage arrears as my new job does not cover my outgoings and I can't get a better job, I give up, the whole lot seems to be against me.

Link to post
Share on other sites

Hi,

 

Thanks for your advice toddle2U.

 

I'm not sure exactly what situation I'm in as things do not seem to be following the pattern you laid out above. I am awaiting my useless accountant to produce my final Correct VAT figures up to end Feb. The company will be filed as ceasing trading on 28th Feb (although I had to take money from it after that date- I was told I couldnt claim benefit as I had a company, and it was this or starve/default on rent etc).

 

Anyway, I have relayed my tale of woe to the accountant and to HMRC (who are the only creditor and have objected to the strike off), and it seems that Companies House have proposed its strike off, but not actually done this yet. HMRC gave me an estimated bill for my final VAT return which is incorrect, but as I am waiting for my acct to sort out the figures I'm not sure how inaccurate it is. HMRC have obviously passed me to teh next stage of teh sausage factory now, as they have passed my details to a collections agent called CCS. They are calling every day and have told me that regardless of my situation (unemployed, living on income support, single mum with toddler to care for ) they want me to pay back the sum or they will take me to court for some unspecified court action. I have asked what action this might be but they are incapable of telling me. I have explained there are no company assets, and I have no personal assets- no car, no house etc.

 

Obviously some of thsi will be remedied when the correct figure is submitted, but I will also owe about 6-7 grand in corporation tax that I can't pay, and £450 in personal tax- I might be able to raise this by selling furniture I have spare.

 

No one can tell me what happens now. My accountant has refused to call me several times altho i have requested this to understand what i need to do, and I have no idea where I stand. As I said to the person on the phone today, if I dont have the money, I cant pay anything no matter what court action is taken. Me and my son are already regularly skipping meals (he's 4) and I cannot make my money go any further. We live below the poverty line, and I did not intentionally get myself into this situation, I lost two jobs and my partner went off with another woman. I have looked for more work but I just cant get any to fit with my childcare responsibilities. Will they care about this or take it into account?

 

I am also extremely worried because the business was registered at my mothers address and I am terrified bailiffs will turn up there (and so is she). There is nothing there of mine or the company's, but obviously, bailiffs do not always care about things like that.

 

After all this, I have managed to get onto a scheme with the New Deal, which means I will be given support to set up a new business I can fit around my son, I really want to do this, but I will be a sole trader and I am worried they will either prevent me or they will take any money I make, which I desperately need. I can't even afford a pair of winter shoes at the moment.

 

What should I do about all this? I'm guessing that even if the company is struck off, they will still pursue me personally for the debt, but I just can't pay. HELP!

Link to post
Share on other sites

They cant pursue you personally for the debts of a limited liability company, that is the whole purpose of being set as limited. The debts belong to the company, if it is struck off it does not exist and therefore cannot pay the debt.

 

The threats of court action will be a generic script used to scare people in to paying. The court action could refer to the serving of a compulsory winding-up order to place the company in to liquidation, which is really what is needed - HMRC will keep objecting to strike-off, but they are renown for liquidating companies... that should then be the end of it.

 

With regards to any debts you personally owe, when the company has been wound-up maybe look at an IVA or bankruptcy

Link to post
Share on other sites

Electrica

It is a problem about the illegal dividends as I mentioned in my earlier post. It would seem that you were badly advised by the accountants but unfortunately whats done is done. As the Liquidator has the books and records of the company already, and therefore the proof that the divends were taken when there were not sufficient profits it will be difficult to fight this one especially as it seems that the accountant is no longer willing to assist you. You could ask you accountant to reverse these transactions in that you should have been paid as a PAYE employee of the company which in turn will increase the liability to HMRC but reduce your personal one and in turn you will not have taken illegal dividends. When was the last time Wilson Field's solicitor wrote to you regarding this? Also as you were the sole employee and I guess very little overheads most of what you made would have been pure profit? If this was the case then IMO the money must have been there for you to be able to draw on it and therefore you were making the profit to sustain these drawings? Therefore no illegal dividend. However, with the confliciting posts and little information we have it is difficult to say.

 

I am a little confused with regards to which company the HMRC are sending you bailiff letters about. If it is the one Wilson Field are dealing with point the bailiffs in their direction as the company has been liquidated. Similarly the one with the OR as this has also now been liquidated. Or is there another one? When the companies were liquidated the registered office of the company should have been changed to that of the Liqudiator and/or OR. Check on companies house website to make sure this has been done. Hopefully this will stop them turning up at your mothers adderss.

Link to post
Share on other sites

  • 4 weeks later...

Hi Toddle2u, thanks again for your reply- Someone else has posted about their own situation and Wilson Field on this thread for some reason, it's not me if you look at the name/avatar. I think if you re-read my posts without that it becomes a lot less confusing :)

 

I have now had some contact from my acct- they say I owe approx 6.5 grand in Corp tax, £450 in personal tax, and £650 in VAT. My Mum is paying off the £450 for me, so I am left with the other two sums. I asked teh acct if they could do a bit of creative accounting to massage the situation at all, and they said no, so I'm interested to hear your suggestion about reversing transactions. As I say, they have been useless from the beginning really.

 

They have sent my final accts to Companies house now, so this may be too late to alter in any case. They advised me to call the corp tax people in advance to advise them of my situation, but they were also utterly unhelpful- they said they have no view of the debt, they need some form sent to them and can't discuss it till then (which I thought the accountant was taking care of). I told them the figure and they said they couldnt advise me what will happen/what process they have for dealing with debt/what they do when the person cannot pay due to reduced circumstances blah blah... I feel like I'm banging my head against a brick wall quite honestly.

 

The guy eventually did relent and said that if they think they have no way of getting it back, they will likely just write it off. he said 'they will come round and want to look at everything though', I asked what that meant and he said assets. But later he said he had no idea how the collections side operates. I find it hard to believe that people working in the tax office are this ill-informed frankly, but he did seem to be talking out of his behind for most of the conversation and not really listening to my questions, just answering the ones he wanted to answer iykwim.

 

With the VAT, the company I've been passed to is CCS Collections, who are an external agent. I've explained my situ fully to them, but they just keep calling, which clearly won't resolve anything. I've gone beyond being frightened of this situation now to just being utterly fed up of repeating myself and not getting any sense out of anyone. I'm trying to sort things out and keep them informed, but I just feel like it's not being heard.

 

Anyway, my basic feeling now is that at worst I will have to make some really painfully slow payment plan with them. I refuse to go bankrupt. I have spent 5 years digging myself out of the debt hole created by my previous ex, and I am not going to spend the next 6 years waiting for a pointless bankruptcy or CCJ to fall off my record. I am now on the self-employed scheme I mentioned above, but it will take a good year to turn enough money to support me, and I am hoping that the fact I am still living below the poverty line/have no assets/am supporting a vulnerable child/will take ages to make enough to start making even small payments will cause them to write it off. I should think £7 grand is peanuts to the revenue quite honestly, and they won't want to spend thousands more going to court and all that. I also found out that single parents and the unemployed/low income status are considered to be 'vulnerable' and they therefore have to be cautious in how to deal with people in these categories. There again, it all seems so vague that it wouldn't surprise me whatever they did. Sigh...

 

If you have any comments based on the above and taking the other person's post out of consideration, I'd really like to hear them still if you have time :)

 

Susan

Link to post
Share on other sites

Susan

 

Ok it all makes a bit more sense taking out that post.What is the situation with regards to the strike off you submitted? I know HMRC objected but have a look on Companies House website and see what the status of the company is. Does it say 'proposal to strike off'? Just because it HMRC have objected doesn't mean that it won't go through as they have to prove the debt. Obvioulsy this is fairly easy now that the accounts have been submitted but is still worth checking. Persoanlly I wouldn't have bothered having the accounts finalised or filed but what's done is done.

 

Next if the strike off is not live you are going to have to start at the beginning again on this.You need to write to all creditors stating that the Company has ceased to trade and has insufficient funds to appoint a Liqudator and invite them to issue winding up proceedings themselves. If the Company is not subjet to winding up proceedings state that you intend to apply for a strike off after three months from the date of the letter under s1003 of the Companies Act. HMRC may or may not object to the strike off again but either way you have sent the letter to them as required by law and if they do just send a letter to Companies House showing them that you intended to apply for a strike off.and all creditors have been informed of this

 

With regards to CCCS don't even bother getting into it with them. Just tell them that the company has no assets and has ceased to trade and put the phone down. They will harrass you for a bit but will get the message eventually

 

Hope it makes sense. Need any more info just shout

Link to post
Share on other sites

  • 1 month later...

Hi there, i am going through a similiar thing.

 

My ltd co has already been dissolved but i still owe some corporation tax, HMRC have threatened me with court etc but the ltd company no longer exists so how can they still be chasing it? Can they actually take me to court when the company is dessolved? any information would be helpful.

Link to post
Share on other sites

No they can't chase you. The debt is owed by the limited Company and not you personally. Have they threatended you with Court or the Company? Write to them telling them the Company's disolved and tell them to check Companies House website for clarification

Link to post
Share on other sites

..

Susan

 

Hi there- thanks once again for your advice :)

 

Ok it all makes a bit more sense taking out that post.What is the situation with regards to the strike off you submitted? I know HMRC objected but have a look on Companies House website and see what the status of the company is. Does it say 'proposal to strike off'? Just because it HMRC have objected doesn't mean that it won't go through as they have to prove the debt. Obvioulsy this is fairly easy now that the accounts have been submitted but is still worth checking. Persoanlly I wouldn't have bothered having the accounts finalised or filed but what's done is done.

 

I was advised by my acct that I had to have the accounts done, and that this was what had flagged up the strike off to the HMRC in the first place. I've checked Companies House, and while the strike off was proposed and showing as proposed some months ago, it now shows as an active company!

 

Next if the strike off is not live you are going to have to start at the beginning again on this.You need to write to all creditors stating that the Company has ceased to trade and has insufficient funds to appoint a Liqudator and invite them to issue winding up proceedings themselves. If the Company is not subjet to winding up proceedings state that you intend to apply for a strike off after three months from the date of the letter under s1003 of the Companies Act. HMRC may or may not object to the strike off again but either way you have sent the letter to them as required by law and if they do just send a letter to Companies House showing them that you intended to apply for a strike off.and all creditors have been informed of this

 

So basically, even though I've already applied once, I now have to apply again? HMRC did object, but don't appear to have done much about it other than give me lots of lovely letters and not know their own processes or listen to anything I say. My accountant is useless.

What would winding-up procedures entail? I'm now paying off the personal tax outstanding, but will have the corporation tax and the VAT left to pay. If I apply again, and they someohow don't object this time, would they see that as me being deceptive (based on the first objection) and have the strike off reversed?

 

 

With regards to CCCS don't even bother getting into it with them. Just tell them that the company has no assets and has ceased to trade and put the phone down. They will harrass you for a bit but will get the message eventually

 

I eventually got thru to a human at CCCS and she told me that they have no power to affect my credit record at all, ie no CCJ's or bankruptcies etc, so not too worried about them, but obvs, now VAT and Corp tax have it flagged up that I owe them money. They should both have the exact figures too. I'm guessing they probably won't agree to strike off.

ARGH! I cannot seem to just get this to any conclusion. What do you think the best thing is to do?

Thanks, Susan

 

 

Hope it makes sense. Need any more info just shout

Link to post
Share on other sites

Hi there, i am going through a similiar thing.

 

My ltd co has already been dissolved but i still owe some corporation tax, HMRC have threatened me with court etc but the ltd company no longer exists so how can they still be chasing it? Can they actually take me to court when the company is dessolved? any information would be helpful.

 

 

This may be a stupid question, but how did you get it dissolved with hmrc debts still outstanding??

Link to post
Share on other sites

  • 5 months later...
  • 4 weeks later...
I had my own Limited Company for 14 years and had to voluntarily liquidate it 20 months ago due to no new contracts coming forward, there was only really me employed, I paid a Sheffield Company, Wilson Field £5.5K for the privelige, no creditors turned up at the meeting, owed HMRC about 21K in Vat and Corp tax. 14 months later my second Company then got liquidated by a supplier when we could no longer pay our bills due to other companies going bust.No fault of our own.

The Official Receiver was put in charge of this one and I was interviewed for about 2 hours and it was recorded, the OR said I would not hear from him again ?.

I had heard nothing about my voluntary liquidation until a month after this interview, then the Liquidator, Wilson Field, I had paid £5.5K to sends a letter from their Solicitors HLW asking me to explain dividends and payments over the last 6 years. They say I owe £130K for taking dividends when there was no profit. I had a firm of Chartered accounts look after both companies and only took what I was told, they submitted the accounts every year. They now want me to answer their questions which I cannot do as they have all the documents and am not an Accountant and my Accountants will not travel to the liquidators unless I pay them £2K ? Surely if there are questions to be asked about the finances the Accountants should explain ?

I haven't heard from the OR about the second company but am now worried that the simple voluntary liquidation is going to send me to jail or something. I am no longer a Director of any companies and now have a PAYE job, I would never want to be involved in a self employed way again.

On top of this I have 3 months mortgage arrears as my new job does not cover my outgoings and I can't get a better job, I give up, the whole lot seems to be against me.

 

Hi My company is about to go become insolvent. I have never known stress like this! Can I ask what happened next for you? Any help massively appreciated.

Link to post
Share on other sites

Hi My company is about to go become insolvent. I have never known stress like this! Can I ask what happened next for you? Any help massively appreciated.

 

Hi - Can you give us a bit more info on your situation and at what stage you are at. Have Liquidators or the OR been appointed?

Link to post
Share on other sites

  • 2 months later...

Hi

 

I am in a similar situation. My ltd company has only been trading for 18 months, but I have now accepted a permanent job offer and the company owes about 8k in corporation tax, and about 5k in VAT + PAYE/NI

 

My accountant has filed my PAYE but not the company accounts yet.

 

I cannot afford to pay the VAT or corporation tax and I have no hope of finding another work contract, so I wish to close the company.

As the company accounts have not been filed, what is my best course of action? The accounts are with my accountant, but I don't really wish to pay them to file them if I don't need to.

I read somewhere I could do nothing/inform Company house and the company will be struck off in 3 months.

HMRC are chasing me via Fairfax solicitors for 2k in VAT although I know I owe more.

If I file to be struck off, and HMRC don't know about my end of year accounts, will it just go through without a block or are they likely to block it and insist on end of year accounts being submitted?

 

Also - the accounts at the moment, show I took out directors loans to cover the amount of cash I had taken out of the company. If I have to file the accounts, should I apply to get a change to the P11D (PAYE) details and change it to salary instead of Directors loans? - I read somewhere they can chase you for directors loans even if the company is liquidated.

 

Thanks in advance

Link to post
Share on other sites

I am in a similar situation - but having initially sent Form DS 01 (google or see Co house web site about this form) then I spoke to HMRC by phone and then sent the attached letter. This seems to have worked and HMRC have since withdrawn their objection.

 

In the meantime I would suggest you pay no more to HMRC - either PAYE, VAT or Corporation Tax - or to any other creditor come to that. The limited company (a separate legal entity) deducted your PAYE from you and it (not you) owes anything not subsbequently handed over to HMRC - but they can't take blood from a stone - but you personally are NOT liable for any of the Company's debts un;ess you have not behaved "correctly" in your "stewardship" of the Company.

 

If it has just been a case of your business not being viable and you finally recognising this after a long period of struggling to make it work then IMHO you've nothing to worry about. I don't believe anyone would be interested in pursuing you personally - after all even Fred the Shred was not asked to repay any of the huge losses he and his cronies built up before the Tax Payer had to rescue RBS - and we even paid him off with a huge pension although he's only about 50 years old!

 

Good luck in your new job!

 

Hope this helps?

 

BD

 

Copy of my Letter to HMRC below:

 

Dear Sirs

 

I refer to my telephone conversation earlier today with Mr XX when he advised me to write to you regarding your objection to the proposal to strike off the above company. I sent a copy of the Companies House Form DS01 “striking off application by a Company” to all known creditors, including HMRC, on or around XX and was unaware of your objection until I contacted Companies House this morning to query the delay in the Company being dissolved.

 

I understand your objection is based on the fact that the Accounts due for the period up to XX are overdue and you believe there to be unpaid PAYE, VAT and Corporation Tax outstanding. Due to an error by the book keeper we then employed, the profits of the Company shown in the year ending XX were overstated by some £20,000 and, based on the prior and subsequent accumulated losses the Company should not have been liable for any Corporation Tax. The Company continued to have financial difficulties in its later years and when it became clear that it was unlikely to recover I took the decision to cease trading and to notify all creditors via form DS01 as outlined earlier.

 

The company has no remaining assets and accordingly there are no funds with which to fund the expenses of a formal liquidation. There will be no dividend payment to creditors. I would therefore ask you to withdraw your objection so the Company can be dissolved without further delay.

 

Our accountants, XX, will no longer act for us as we have no means of paying both outstanding and any further bills and consequently we cannot produce Accounts to cover the period from XX until cessation of trading. I can confirm that during that time the Company continued to make a loss and became unable to meet its accumulated liabilities, leading to my decision to apply to Companies House to have the Company dissolved.

 

The Company’s registered office is the Accountant’s office. It is therefore preferable that any correspondence (if it must be sent by post) is sent to me at my home address as outlined above, but e-mail contact to me at XX would be preferable as I am unsure for how long I shall be at this address.

 

Yours sincerely

 

 

Big Debtor

Director

XX Limited (in process of being dissolved)

XX Limited is no longer at the address shown here (i.e. on the letterhead), with no access to telephone or fax. Any future contact should be by e-mail where possible to XX .

Link to post
Share on other sites

  • 3 weeks later...

Hi,

 

Update: Still no resolution! Quelle suprise!

 

I was asked by HMRC to submit a really simplistic form with details of the company finances on it some months ago, which I duly did, and enclosed a covering letter explaining in some detail the circumstances of the company ceasing trading, and my aggravating personal circumstances. I got no reply. A few weeks later I rang to ask them what was going on. They said they had received the letter, and the file was with 'the investigators'. I asked what this meant, and they said they couldn't tell me who these 'investigators' were, where they were based, or give me any number for them, as they weren't in the same department and didn't know anything about what they did. A typically useful HMRC response, as I have found out. I was however told that it looked as though they would be writing off the debt, and that when that happened they would withdraw their objection to the strike-off. I clarified this, and the man insisted this was the case, he also told me that I should just assume it had happened if I didn't hear anything (which I told him was a ridiculous thing to say when dealing with the HMRC and their 'system').

 

In the meantime, some health concerns have taken priority, and I have heard nothing from any part of HMRC to do with the company, except that they are still sending letters asking for things like accounts to be filed or PAYE to be paid when I have clearly told them the company has ceased trading.

 

Today, I rang up Companies house to establish what was going on, and they said HMRC lodged another objection to the strike off in October (well after my letter asking them to withdraw their objection and explaining what had happened was sent). When I asked why they did this, they said creditors can do this to prolong the period of objection. I asked if there was anything I could do, as HMRC have made no communication with me and no moves to wind up the company and they said no, but I could write to them and they would 'look at it'. I tried to clarify whether that meant they could remove the objection (as toddle2u had previously advised), and they said not really, unless there were some exceptional circumstances. I find it unbelieveable that they can just keep a company open like this, indefinitely, without taking any action.

 

I am absolutely livid! I cannot believe the irresponsibility of HMRC. Not only making it impossible to contact *anyone* with the faintest clue about what they are doing, what I should be doing, or what the hell they actually want at this point, but deliberately drawing out a process in which they are doing nothing!! They haven't even acknowledged my letter! I have had zero contact. The letter must have been sent at least three months ago now. I just want this dealt with and to move on with my life. I made it very clear that I was suffering from stress and depression, and frankly I think their behaviour borders on harassment. telling someone to 'assume' debts have been written off (which I don't believe for a minute) is appalling!

 

I am totally at a loss as to what to do now. I'm going to ring HMRC tomorrow and find out why they are objecting again, and see if I can get any sense out of them about what is happening and who I need to speak to. I just feel like even though I am speaking to the supposedly right people and making myself available for contact, and trying to resolve things properly, they are abusing their position. They don't appear to be handling anything in the regular way- any other person on here applies for strike off and it happens, I truly do not understand why I cannot get this company closed. The entire system is a f*cking mystery (ie laughable series of encounters with people working in silos who have no clue what the hell anyone else does or how you can resolve anything), and they won't explain it. If they say I haven't filed yearly accounts I'll hit the roof. It's not like there is even a regulator or an advisory body you can go to about this. I don't even know who I can usefully contact at this point, since the regular corporation tax people say its out of their hands, and I can't get details of the 'investigators'.

 

Any advice?? Toddle2U you mentioned before that you have had objections removed at Companies House before- can you tell me how?

 

Also, I'm sorry other people are having issues too, but could I please ask that you post your issues in a separate thread, as this one is complicated enough already, and I would like to keep it clearly about the problem I originally posted with. Thanks.

Link to post
Share on other sites

  • Recently Browsing   0 Caggers

    • No registered users viewing this page.

  • Have we helped you ...?


×
×
  • Create New...