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Corp Tax for Dissolved Company

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    Corp Tax for Dissolved Company

    Ok, so after many years of O/S IR35 I've taken an Inside gig and decided to dissolve the Ltd Co I've been using.

    I tried to file a final CT return but the site wouldn't let me do it as it wasn't due, so I thought I'd dissolve the company and then file the final return on the anniversary when it would allow me to do it.

    I checked a few weeks back to do this, and the CT option has gone from my Business Tax Account, I rang up HMRC and spoke to someone who said as the company has been dissolved there is no return due or anything to pay.

    I calculate there should be a CT return and bill of about £1k - £2k, the funds are sat in a personal account as the banka ccount has since been closed down.

    What should I do - hold on to the cash in case they ever ask?

    I was thinking of writing a letter so I get a response that I can hold onto.

    An thoughts, I'm thinking I may start up a Ltd again now IR35 seems to have been repealed but would this have an imoact on me as a director?

    Thanks for any advice / thoughts.
    Cenedl heb iaith, cenedl heb galon

    #2
    so I thought I'd dissolve the company and then file the final return on the anniversary when it would allow me to do it.
    What led you to think this. How can a company do anything when it no longer exists? And moving company money to a personal account. This didn't strike you as a bit odd?

    What should I do - hold on to the cash in case they ever ask?
    They won't ask. They'll come for you with a fine and interest. It's tax evasion.

    Did you have an accountant before? I'd ring them and see if they will do you one last favour and help you out of this mess.

    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      did you read this?

      Strike off, dissolution and restoration - GOV.UK (www.gov.uk)

      and specifically did you do this

      The directors who make the application must, within 7 days of sending the application to the registrar, send a copy to:
      • members, usually the shareholders
      • creditors, including all existing and likely creditors such as:
        • banks
        • suppliers
        • former employees if the company owes them money
        • landlords or tenants (for example, where a bond is refundable)
        • guarantors
        • personal injury claimants
        • HMRC and Department of Work and Pensions (DWP)
      • employees
      • managers or trustees of any employee pension fund
      • any directors who have not signed the form
      If you did this then you are probably safe.
      If you didn't you have committed an offence.

      But I do think you should ask a professional.
      See You Next Tuesday

      Comment


        #4
        Originally posted by northernladuk View Post

        What led you to think this. How can a company do anything when it no longer exists? And moving company money to a personal account. This didn't strike you as a bit odd?


        They won't ask. They'll come for you with a fine and interest. It's tax evasion.

        Did you have an accountant before? I'd ring them and see if they will do you one last favour and help you out of this mess.
        When the company was dissolved Companies House and my Bank both said that the Bank Account would be frozen so I should move any remaining funds out.

        How can it be tax evasion when I've said "I owe you money - how do I report and pay it?" and they have said "You don't owe anything"?
        Cenedl heb iaith, cenedl heb galon

        Comment


          #5
          Originally posted by Lance View Post
          did you read this?

          Strike off, dissolution and restoration - GOV.UK (www.gov.uk)

          and specifically did you do this



          If you did this then you are probably safe.
          If you didn't you have committed an offence.

          But I do think you should ask a professional.
          Yes, I did read that - and all the advice that came from Companies House about dissolving a company.

          It just seems odd that they would let anyone do this - I'd actually prefer to pay the amount as I have the money - I just don't know how to do that, and HMRC don't seem to want to facilitate it.

          I told HMRC to close down the various accounts, PAYE, VAT & CT.
          They only seemed to have removed the CT one from the Business Account - but the others just say there are no returns or payments due.
          Cenedl heb iaith, cenedl heb galon

          Comment


            #6
            Originally posted by Bluebird View Post

            When the company was dissolved Companies House and my Bank both said that the Bank Account would be frozen so I should move any remaining funds out.

            How can it be tax evasion when I've said "I owe you money - how do I report and pay it?" and they have said "You don't owe anything"?
            And you've paid tax via whatever method you moved it out of the company? If it's not spare tax cash you are planning on holding on to then it must be income which is either moved out via dividend or salary. You can't just move money out of the company just because.

            Saying you don't owe anything because you shut your company down incorrectly doesn't mean you wouldn't owe it if you did it properly. You know you owe it, it's just the system not letting you.

            Maslins or Craig@Clarity can you help?
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Without the CT return, HMRC didn't know anything was due.

              By submitting the DS01 and not specifically informing HMRC of the remaining CT liability, you've effectively by omission told HMRC no CT was due. They had no reason to challenge the strike off (presumably there was no black mark against you/your company so they had no suspicion), so the strike off was allowed to go through.

              The company is now effectively dead, and you're trying to get HMRC to accept money on its behalf...but they're now not expecting anything, and have basically closed down their files related to it.


              As to what's best to do now...not a situation we've come across before!

              A "proper" thing to do, which would be a lot of faff, would be to apply to Companies House to get the company reinstated. Then submit the missing CT return and pay liability from the personal funds you've set aside. Then apply to strike it off again.

              If you were to instead do nothing at all from here...well, as far as HMRC are concerned the company's dead. I doubt they'd chase you for a liability they don't know existed, from a company that's dissolved. This would however be tax evasion, even if inadvertent.

              A practical solution might be to post them a printed/signed CT return for that late period, with a cover note explaining the situation, and a (personal) cheque for the liability. They'll hopefully be able to bank it, and you can feel happy you've tried to do the right thing, they've got all they were due, minimal faff.

              Comment


                #8
                Originally posted by Maslins View Post
                Without the CT return, HMRC didn't know anything was due.

                By submitting the DS01 and not specifically informing HMRC of the remaining CT liability, you've effectively by omission told HMRC no CT was due. They had no reason to challenge the strike off (presumably there was no black mark against you/your company so they had no suspicion), so the strike off was allowed to go through.

                The company is now effectively dead, and you're trying to get HMRC to accept money on its behalf...but they're now not expecting anything, and have basically closed down their files related to it.


                As to what's best to do now...not a situation we've come across before!

                A "proper" thing to do, which would be a lot of faff, would be to apply to Companies House to get the company reinstated. Then submit the missing CT return and pay liability from the personal funds you've set aside. Then apply to strike it off again.

                If you were to instead do nothing at all from here...well, as far as HMRC are concerned the company's dead. I doubt they'd chase you for a liability they don't know existed, from a company that's dissolved. This would however be tax evasion, even if inadvertent.

                A practical solution might be to post them a printed/signed CT return for that late period, with a cover note explaining the situation, and a (personal) cheque for the liability. They'll hopefully be able to bank it, and you can feel happy you've tried to do the right thing, they've got all they were due, minimal faff.
                Thanks - that sounds like a good solution
                Cenedl heb iaith, cenedl heb galon

                Comment

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