Closing co., owed money by HMRC

[Robot]

Thanks. I've been doing the accounts for Companies House, but HMRC online systems are down. I was using the PDF (so I can't write "cessation" on the front). Is there anything else I need to do to say that trading has stopped now?

Mention it on the Directors report of the accounts if you can, and I think there is a 'white space' on the company tax return you can mention the company has ceased trading.

[VectraMan]

Thanks. I've been doing the accounts for Companies House, but HMRC online systems are down. I was using the PDF (so I can't write "cessation" on the front). Is there anything else I need to do to say that trading has stopped now?

[FGB]

I closed a company down and after it was struck off I received a Corporation Tax refund. Upon advice from my accountant I sent it back to HMRC with a covering note explaining that the company was no longer trading and that I was the sole shareholder and could the repayment be made out to me personally. The cheque arrived a week later.

[Robot]

I know this comes up a lot, but all the things I've found say you have to make sure all taxes paid etc. But in this case the company is owed money by HMRC.

This is for a small plan B venture I started with a friend a few years ago, but we only ever invoiced for about £7K of work, and only about £3K of it ever turned up. We kept the company going for 2 years in the hope the client (who's virtually bankrupt) would come up with the money, but there's no chance now. And obviously paying an accountant to do this isn't really an option with such a small amount of money.

We paid the CT based on £7K, and obviously before we close the company it'd be nice to get the overpaid CT back from HMRC.

The company year ended end of September, so I'm thinking what I should do is do the CT return for the year just finished now listing the bad debt and claiming the refund (however that works). But should I start the process of closing the company now too? What I'm worried about is the bank may close, or freeze the account, and I need the account for the money being returned.

Any suggestions as how best to proceed greatly appreciated. I've already got this company one £150 fine, so I'm nervous about doing it right.

Prepare accounts (stating on the front of them cessation).
Prepare the corporation tax return.
Submit Accounts to CH and Accounts and company tax return to HMR&C - ASAP.

As the year end is September you will not be able to submit a DS01 to CH until 1 Jan 11, thereafter you have about 4 months before the company is struck off and you would expect the CT refund to be in your company bank account before the end of April 11.

You may have to prepare a cessation P11d and P35 and deregister from the VAT / PAYE systems.

Re bad debt at present you have a trade debtor on the balance sheet, transfer it from the balance sheet to P&L under the heading 'bad debts'. (Ignored VAT transactions not sure if there are any)

Good Luck

Robot

[VectraMan]

I know this comes up a lot, but all the things I've found say you have to make sure all taxes paid etc. But in this case the company is owed money by HMRC.

This is for a small plan B venture I started with a friend a few years ago, but we only ever invoiced for about £7K of work, and only about £3K of it ever turned up. We kept the company going for 2 years in the hope the client (who's virtually bankrupt) would come up with the money, but there's no chance now. And obviously paying an accountant to do this isn't really an option with such a small amount of money.

We paid the CT based on £7K, and obviously before we close the company it'd be nice to get the overpaid CT back from HMRC.

The company year ended end of September, so I'm thinking what I should do is do the CT return for the year just finished now listing the bad debt and claiming the refund (however that works). But should I start the process of closing the company now too? What I'm worried about is the bank may close, or freeze the account, and I need the account for the money being returned.

Any suggestions as how best to proceed greatly appreciated. I've already got this company one £150 fine, so I'm nervous about doing it right.