Corporation Tax and HMRC Fines

wildheart83

I've been trying to wind up my Ltd company since 2021, and also tried to make it dormant but I've been unable to do either.

I received a £100 fine from HMRC for failing to submit my return for Corporation Tax which I paid. I tried again to wind the company up and received an objection, resulting in the winding up being put on hold for 6 months. Today I've had another £100 fine for failing to submit my return.

My first question is am I personally liable for this new fine? I can't afford to keep paying £100 fines every couple of months, whilst I'm trying to wind up the company. 

Secondly, is it worth appealing the fine? 

Thanks for reading 

DullGreyGuy

The fine is to the company not to you personally. Was the company solvent? Have you already removed any residual profits? If you have then probably best to reverse that so the company can pay the fines rather than move to an insolvency situation. 

The fines will follow the below pattern until such time as you file:
https://www.gov.uk/company-tax-returns/penalties-for-late-filing 

wildheart83

DullGreyGuy said:

The fine is to the company not to you personally. Was the company solvent? Have you already removed any residual profits? If you have then probably best to reverse that so the company can pay the fines rather than move to an insolvency situation. 

The fines will follow the below pattern until such time as you file:
https://www.gov.uk/company-tax-returns/penalties-for-late-filing 

The company has been insolvent for some time, which is why I'm trying to close it down. There's been no profits for years and the business bank account has been closed so there's nowhere to pay money into

DullGreyGuy

So is it a Creditor's Voluntary Liquidation or an Involuntary Liquidation? 

Have you spoken to the Insolvency Practioner about the HMRC fines? 

wildheart83

DullGreyGuy said:

So is it a Creditor's Voluntary Liquidation or an Involuntary Liquidation? 

Have you spoken to the Insolvency Practioner about the HMRC fines? 

I've submitted a DS01 to strike the company off as opposed to liquidating the company. I don't have an Insolvency Practitioner (they advised against liquidation when I spoke to them) nor do I have an accountant anymore. 

If I need to pay this fine then I'll find a way to get the money, but I simply can't afford to keep paying fines. 

penners324

Appeal it. State the company is being wound up

wildheart83

Just a quick post to update. I appealed the fine, explained that I've been trying since 2021 to wind up the company and that I've not been trading for years. HMRC have marked my business as dormant, refunded the fines paid by me personally and everything is marked up to date. It's a shame that when I wrote to them initially they didn't do any of that, even though circumstances haven't changed but I'm very relieved that it's all sorted now. 

Thanks everyone for your help and advice, it's very much appreciated.