Late filing penalty

RichyRich

Hi everybody

I am the sole director of a dormant limited company which has never traded.

Through what can only be described as my own stupidity, I submitted the (dormancy) accounts around 2 days late (in actual fact what happened was that my wife had been in and out of hospital and in the midst of what happened it had slipped my mind - not looking for sympathy here and sure that this is not a valid excuse according to CH!)

Anyway, the accounts were accepted and I thought that would be the end of it. Just returned from a weekend away and have received an invoice for a Late Filing Penalty - £150.

Now, I don't actually need this company. I incorporated it for a purpose that I never used it for and it's lain dormant since and I've been filing the annual return and accounts when due ever since should I ever need to use it. I'm quite happy to dissolve it.

The advice online seems to be that if I apply to have the company struck off, which costs £10, CH won't pursue the payment of the penalty. I've found the Companies House Late Filing Appeals Manual which at page 13 seems to corroborate this:

Companies_House_Late_Filing_Penalties_Appeals_Manual wrote:

The penalty will not normally be collected if an application is made to remove (strike off) the company from the register. Where a claim form has been issued, the company will be expected to pay any legal costs that have been incurred. However, if the costs remain
unpaid, the Registrar will continue with the strike off action. If the strike off action is withdrawn for any reason, then action to ecover the penalty will recommence.

So, whilst accepting that I was in the wrong and should have filed earlier, I'd rather not pay the penalty. I don't actually have £150 to lay my hands on but if I have to pay it I'll have to find it. But to avoid this happening in the future I'm going to dissolve the company anyway.

My question is, what's the best course of action? If I send the application to dissolve the company will CH automatically stop pursuing it, or do I need to appeal as well? I see that I have three options:

1. File an application to strike the company off the register
2. File an application to strike the company off the register, and lodge an appeal explaining what I have done and requesting CH to exercise leniency
3. File an application to strike of the company and pay the penalty

I'd appreciate advice from anyone with practical experience or knowledge of how this works in practice, and rest assured that I've very much learned my lesson!

Many thanks
Rich

earthstorm

I suggest you telephone CH and explain that you are going to dissolve the company.

you will need to follow these instructions http://www.companieshouse.co.uk/infoAndGuide/windingUpCompany.shtml

meanbean

Hi, I had the same situation a few years ago. I spoke to CH and they were happy for me to dissolve the company for the lesser fee and then they waived the late filing fee, with a proviso that I didn't re-establish the company of the same name again in the near future.

earthstorm

meanbean wrote: »

with a proviso that I didn't re-establish the company of the same name again in the near future.

Yes i dissolved a company (did not have any late fees, just no need for it) and they told me that if i re established the same company name within 12 months, then would class this as a continuation. so not sure if you have a late fee, but i would assume the timeframe would be 3 or 6 months

RichyRich

Thanks everybody for your responses! I've sent the dissolution form off and will give them a call in the morning to discuss. I really appreciate your replies.

Many thanks!

Wywth

RichyRich wrote: »

Hi everybody

I am the sole director of a dormant limited company which has never traded.

Through what can only be described as my own stupidity, I submitted the (dormancy) accounts around 2 days late (in actual fact what happened was that my wife had been in and out of hospital and in the midst of what happened it had slipped my mind - not looking for sympathy here and sure that this is not a valid excuse according to CH!)

Anyway, the accounts were accepted and I thought that would be the end of it. Just returned from a weekend away and have received an invoice for a Late Filing Penalty - £150.

Now, I don't actually need this company. I incorporated it for a purpose that I never used it for and it's lain dormant since and I've been filing the annual return and accounts when due ever since should I ever need to use it. I'm quite happy to dissolve it.

The advice online seems to be that if I apply to have the company struck off, which costs £10, CH won't pursue the payment of the penalty. I've found the Companies House Late Filing Appeals Manual which at page 13 seems to corroborate this:



So, whilst accepting that I was in the wrong and should have filed earlier, I'd rather not pay the penalty. I don't actually have £150 to lay my hands on but if I have to pay it I'll have to find it. But to avoid this happening in the future I'm going to dissolve the company anyway.

My question is, what's the best course of action? If I send the application to dissolve the company will CH automatically stop pursuing it, or do I need to appeal as well? I see that I have three options:

1. File an application to strike the company off the register
2. File an application to strike the company off the register, and lodge an appeal explaining what I have done and requesting CH to exercise leniency
3. File an application to strike of the company and pay the penalty

I'd appreciate advice from anyone with practical experience or knowledge of how this works in practice, and rest assured that I've very much learned my lesson!

Many thanks
Rich

So what did they say?

On page 17, section 5, it seems to suggest they will offer you a monthly payment scheme to pay off the penalty where you agree to strike off the company. :huh:

RichyRich

I called them today. "Gareth" confirmed that once they receive the dissolution form they will stop pursuing the penalty. I was advised to keep an eye on the register and wait until the company status showed "Proposal to Strike Off".

Thanks once again for everyone's help.