Limited company closed too early, advice needed

bibbetybobs

We had a limited company, Companies House closed it down before Corporation Tax was paid. We didn't know a limited company could be closed before this was paid, we didn't have the accounts ready as they weren't due. Basically, the company closed with us owing it several hundred pounds. Apparently we can still pay our Corporation Tax as normal, we just take it out of our personal accounts but I have no idea what to do about the money owed to the company. Our accountants just said they "imagine" we'll need to repay it. I have no problem with that, obviously, I just don't know how to do it. Any advice about what to do or who to speak to about it would be very much appreciated. Thanks.

texranger

bibbetybobs wrote: »

We had a limited company, Companies House closed it down before Corporation Tax was paid. We didn't know a limited company could be closed before this was paid, we didn't have the accounts ready as they weren't due. Basically, the company closed with us owing it several hundred pounds. Apparently we can still pay our Corporation Tax as normal, we just take it out of our personal accounts but I have no idea what to do about the money owed to the company. Our accountants just said they "imagine" we'll need to repay it. I have no problem with that, obviously, I just don't know how to do it. Any advice about what to do or who to speak to about it would be very much appreciated. Thanks.

i would be asking why did companies house close down the ltd company as they dont do this for no reason.

bibbetybobs

We had requested it to close as it had ceased trading, but we (and the accountants) thought it could only close after Corporation Tax was paid, which we couldn't do as we didn't know how much we owed until the accounts were done. They have been done now which is why we know the company account is under by several hundred.

steve1980

Sounds like your accountant hasn't got a clue!

Phone HMRC and ask the question.

texranger

bibbetybobs wrote: »

We had requested it to close as it had ceased trading, but we (and the accountants) thought it could only close after Corporation Tax was paid, which we couldn't do as we didn't know how much we owed until the accounts were done. They have been done now which is why we know the company account is under by several hundred.

i agree with Steve1980, call HMRC about this.

the way you wrote the opening comment it was like if CH had closed the company down and you have not dissolved the company.

what made you think this could not be closed if CT was due. you pay CT to HMRC and not CH. Ltd companies are always closing down owing thousand of pounds in tax to HMRC and other debts.

Pennywise

HMRC usually object to a voluntary striking off if returns or taxes are outstanding. It is unusual that HMRC didn't pick this up, but given the sheer numbers, it's easy to fall through the net.

I can't quite understand why you made the application to Co House to strike it off, in the expectation that HMRC wouldn't let it happen. Sounds a very strange way of working to me!

I'm not sure whether HMRC can accept accounts, returns and payments now the company is no more. If they've closed their files, it's likely any attempts you make to file and pay will be rejected. To do the right thing, you probably have to get the company restored to Co House and then get HMRC to reopen their files to accept the returns and payment, then apply for it to be closed down again. Of course, some would say that if HMRC and Co House have closed their files after your company was closed, then you can walk away and forget about it all on the grounds HMRC can't chase a company for a debt if the company no longer exists - they'd have to apply to Co House for its restoration themselves which seems unlikely. I suppose it's a matter of morality and how you'd sleep if you forgot about it all as opposed to doing what you believe to be the right thing!

texranger

The debt is the companies debt. i suppose you as a company director had a £1 share which is in effect as a co director this is your total liability