Consequences for ditching paperwork and formalities?

[Craig@Clarity]

Hi guys noob here , back in 2017 I was out of work and did some services on the side as a LTD, because someone ahem ahem told me so. I never earned enoygh to justify hiring an accountant, I managed to file CH company accounts and self assessment, calculated and paid the corporation tax but now I have to do HMRC CT600 and company accounts which I to be honest cant be arsed to do. What's the worst that can happen if I don't? Company has no money left and I doubt I will be ever using it again. Can I safely disregard it? What can they do to me personally? No joke answers please ^_^

At the moment, HMRC have no clue as to how much profit the limited company has generated. All they have is a lump of money your company sent their way which they're sitting on until they receive the accounts, corporation tax return (CT600) and corporation tax return. They don't know if your company had issued loans to it's directors which could lead to potential additional taxes to pay. So, I'd suggest filing the accounts and corporation tax return to HMRC so that they can marry up the amount they have received with the calculated tax. If you've underpaid the corporation tax in the end, they'll charge you late payment interest.

If you have decided that you no longer need the company and plan to strike it off the companies house register, it could slip under the net and be completed in 3-4 months. However, it is likely HMRC will object to the striking off and you'll end up going around in circles until you file the CT600. In the unlikely event you manage to strike to company off without filing a CT600 with HMRC, they could still reinstate the company if it feels like there is a financial incentive to do so.

I think the general consensus would be to file the accounts and corporation tax return with HMRC and be done with it. You can teach yourself how to do it. The accounts have already been filed at CH so you're half way there with the accounts. Or get an accountant to reconstruct a full set of accounts along with a CT600 for a small fee.

[BrilloPad]

Fines to the LTD which has no money, or to the OP personally?

f**k knows. Where is NLUK?

[meridian]

But seriously can I learn how to do accounts in a few days somewhere?

Absolutely, it's just debits and credits. However, just like "can I learn to build a website in a few days", you get what you paid for. The difference is that if you cock up a website there are no fines or penalties...

Xero / Freeagent / Quicken / MS Money all do roughly the same thing - enter in your invoices, load in your bank transactions, generate a draft set of accounts.

[Old Greg]

They can start adding fines. Which could be more than accountant cost.

I expect you will be too lazy to read the "HMRC scheme enquiries" forum. It is littered with people who took on or taking on HMRC. Its a very long, costly and painful process. You don't want to go there.

Why did you do CH company accounts rather than UK company accounts? Did you work for a CH company via a UK Limited?

Fines to the LTD which has no money, or to the OP personally?

[AlexKol]

CH=Companies House in this case. Probably.

So you lied to us!

Oh get off me! His highness certified and chartered accountant wanted 20% of my takings and I figured out that I may be better off paying fines instead

But seriously can I learn how to do accounts in a few days somewhere? Have you guys heard of such heroes?
I managed to do companies house micro entity accounts after all

[NotAllThere]

They can start adding fines. Which could be more than accountant cost.

I expect you will be too lazy to read the "HMRC scheme enquiries" forum. It is littered with people who took on or taking on HMRC. Its a very long, costly and painful process. You don't want to go there.

Why did you do CH company accounts rather than UK company accounts? Did you work for a CH company via a UK Limited?

CH=Companies House in this case. Probably.

Getting an acct tomorrow. Thank you!

So you lied to us!

[BrilloPad]

It's a reasonable question.

You really have a low opinion of CUK posters.

[BrilloPad]

They can start adding fines. Which could be more than accountant cost.

I expect you will be too lazy to read the "HMRC scheme enquiries" forum. It is littered with people who took on or taking on HMRC. Its a very long, costly and painful process. You don't want to go there.

Why did you do CH company accounts rather than UK company accounts? Did you work for a CH company via a UK Limited?

[Old Greg]

So you are asking us if you can be a pillock and get away with it?

It's a reasonable question.

[northernladuk]

So you are asking us if you can be a pillock and get away with it?

This is the prof area of the forums so can we move to General please?

[AlexKol]

Hi guys noob here , back in 2017 I was out of work and did some services on the side as a LTD, because someone ahem ahem told me so. I never earned enoygh to justify hiring an accountant, I managed to file CH company accounts and self assessment, calculated and paid the corporation tax but now I have to do HMRC CT600 and company accounts which I to be honest cant be arsed to do. What's the worst that can happen if I don't? Company has no money left and I doubt I will be ever using it again. Can I safely disregard it? What can they do to me personally? No joke answers please ^_^