In a complete mess - please help.

redmel1621

Hi, 

Apologies for the cry for help. I have managed to get myself in a complete mess and I'm not really sure where to start. I'm actually a little scared. I apologise for the potentially long post, but I feel I need to explain so you have the full picture of what my situation is.

Back in 2020 I registered my self employed venture as a ltd company after reading much well-meaning help on the internet. In early 2021 I filed my tax return (as requested by HMRC) and paid the teeny amount of tax I was liable for - although I don't think I did my tax return form correctly as there were probably expenses I could have included, but that is not really an issue.

Forward to the events that happened between the end of 2021-end of 2023.
We were evicted from our home at the end of 2021 due to the landlord selling up.
My husband lost his job.
I went through a horrendous time with my job and ultimately was forced out.
I ended up near breakdown and on medication from the doctor.
Our adult son moved home after not paying rent on a property I had guarantored him for, causing me 6k to pay. He was also at an all time low with his mental health and struggling to stay in employment etc...
Husband found a job, but then moved companies again to a better job.
I found a job, but it didn't work out due to my mental health and I walked out after a month.
We were then forced to move house again in 2023 due to a huge rent increase on the property we had moved into.
At the same time as moving I started a new job which I was not welcomed into by the existing staff and I nearly quit.
The new house we moved into was a new build so we had to run up credit cards buying appliances and flooring the whole house as it was a concrete shell.

Roll on to mid 2024 - Things have settled. We are settled in the house, which is a stable home for 5yrs (forever if we are able to buy it, if not we may have to move out) My husband has a stable job. I have a stable job. Adult son has a part time job and is very slowly paying back the 6k he owes me. 
Unfortunately we have a MASSIVE amount of debt, but that is not my concern right now....

The reason I am posting is because all of the above has led to me not filing my tax returns, and basically losing every single document to do with the business I set up. I can't find anything from HMRC with my tax details, my UTR number, or anything from companies house. I have lost it all in the chaos of the last 2yrs.

I know I was stupid to set up the company as al td company as I am reading that messing up with corporation tax is worse than if I had just stayed as a sole trader, but I am an idiot!

I need help with how to go about getting myself straight. I scared I am going to have a HUGE fine for not filing my taxes or even be prosecuted. I have not done a single thing to do with the business, so have not earnt a penny. It has basically been inactive for the last 2.5yrs, so I am not avoiding paying anything. It has not traded at all....

Can anyone tell me what might happen to me.
Can anyone tell me who to phone first? Is there a certain section of HMRC to call?

Sorry for the long post. I am embarrassed about the situation I have got myself in. I have 4 children, 2 are adults and 2 are teens and I am actually so scared that I have messed up so badly and that I might even go to jail or something. Which would ruin my family and destroy my career. 

I'm maybe being dramatic, but I never normally do anything wrong like this and I don't want to tell my husband or anyone I know, so I have no one to talk to about this.

Thank you in advance for any help you can give me.

daveyjp

Most areas have small business or enterprise advisory services who should be able to help.

They may be available through local councils, Chamber of Commerce, etc but they generally have experts who will advise and assist, many free of charge.  Search up 'small business advice in xxxx' and look at links to local service provision.

Working_Mum

It sounds a really challenging time for you,
I have been self employed (via a Ltd Co) for over 20 years. I went through a  super scary time when my marriage broke up in 2009. My accountant was my absolute rock during the whole process - she was pragmatic, helpful and totally non-judgemental. I'd suggest trying to find an accountant you can discuss this situation with and you'd be amazed and what they can find out/support you with. It may cost you a few pounds in advice but it'll give you a clear way ahead. My accountant would say to that this isn't first time she'd face this situation so it definitely wouldn't be the first time for HMRC.

Take a deep breath and go search for an accountant you could work this issue through with. 

Big hugs

((WM))

Bookworm105

Finding it is easy, do a search on Companies House (CH)
You look for either the company name or search on your own name (click "officers" tab) and find it by looking at the addresses listed for that name, as presumably you can recall what address you used when registering the company
Get information about a company - GOV.UK (www.gov.uk)

I'll take as read that letters sent to your intermediate addresses will have ben lost by now. but do you delete your emails after a time? 
if not, you will have received many reminders from both HMRC and CH regarding failure to submit tax return, accounts, and the annual confirmation statement. 
Are you aware that although it may not have been trading during your "troubles", the company was nonetheless required to still submit what is called "dormant" accounts and tax return. Failure to do those results in automatic fines even though you earned no money from the company.

I am sorry to say but there will be a lot of outstanding fines against the company. Whether the company can appeal those on mental health grounds of its director's is for you to explore with both HMRC and CH 

What will happen to you? 
You will NOT be prosecuted/ face prison !!
Yes the company owes money, so any money still in the company bank account will be claimed to cover them. If there is no bank account, the company has limited liability and will be struck off for failing to act according to the rules.
You personally may then be disbarred from being a director of any other company for a number of years, but I suspect that won't really matter to you for the future.

Whether you personally will be chased for money owed is a moot point. They will certainly press you to complete the tax returns (and therefore inherently the accounts) so they can assess if any tax is missing. If it has not been trading, then there should not be tax owed, so there is nothing to chase (but don't ignore it!).
technically HMRC has the "power" to chase unpaid debt owed to it by a company by taking action against the directors personally, but that is only possible where "wrongful" (or fraudulent) activity has taken place. For a company that was not trading and was not paying you money, it is extremely unlikely you'd cross the bar of being "wrongful" in that context.

You need to:
a) find the company! (and therefore see what it owes CH)
b) request a reminder of the company's UTR (you will need its name and CH number)
Ask for a copy of your Corporation Tax UTR – GOV.UK
c) contact HMRC using the company UTR to establish what the company owes and more importantly show what it can pay without you  accepting any personal liability for that money. 
Self Assessment: general enquiries - GOV.UK (www.gov.uk) (expect to wait a long time on the phone before being connected)
d) submit whatever info HMRC insists on having to fill in the gaps. 
e) get the company closed down 

It will cost money, but finding an accountant to do some of the above for you will be the most effective way forward.

Savvy_Sue

I'd start by looking your company up on Companies House. That will tell you how far behind you are in filing accounts. 

If you can't remember what you called it, don't panic. Search for your full name as an officer.

An accountant is a good idea. Just have a few conversations while getting quotes, work out who sounds supportive. And work out what you want to do. Realistically, if you just want to close the company down, say so. Or, if you want to revive it, be sure you can put the energy into it.

redmel1621

Bookworm105 said:

Finding it is easy, do a search on Companies House (CH)
You look for either the company name or search on your own surname (click "officers" tab) and find it by looking at the addresses listed for that name, as presumably you can recall what address you used when registering the company
Get information about a company - GOV.UK (www.gov.uk)

I'll take as read that letters sent to your intermediate addresses will have ben lost by now. but do you delete your emails after a time? 
if not, you will have received many reminders from both HMRC and CH regarding failure to submit tax return, accounts, and the annual confirmation statement. 
Are you aware that although it may not have been trading during your "troubles", the company was nonetheless required to still submit what is called "dormant" accounts and tax return. Failure to do those results in automatic fines even though you earned no money from the company.

I am sorry to say but there will be a lot of outstanding fines against the company. Whether the company can appeal those on mental health grounds of its director's is for you to explore with both HMRC and CH 

What will happen to you? 
You will NOT be prosecuted/ face prison !!
Yes the company owes money, so any money still in the company bank account will be claimed to cover them. If there is no bank account, the company has limited liability and will be struck off for failing to act according to the rules.
You personally may then be disbarred from being a director of any other company for a number of years, but I suspect that won't really matter to you for the future.

Whether you personally will be chased for money owed is a moot point. They will certainly press you to complete the tax returns (and therefore inherently the accounts) so they can assess if any tax is missing. If it has not been trading, then there should not be tax owed, so there is nothing to chase (but don't ignore it!).
technically HMRC has the "power" to chase unpaid debt owed to it by a company by taking action against the directors personally, but that is only possible where "wrongful" (or fraudulent) activity has taken place. For a company that was not trading and was not paying you money, it is extremely unlikely you'd cross the bar of being "wrongful" in that context.

You need to:
a) find the company! (and therefore see what it owes CH)
b) contact HMRC to establish what the company owes and more importantly show what it can pay without you  accepting any personal liability for that money. 
Self Assessment: general enquiries - GOV.UK (www.gov.uk) (expect to wait a long time on the phone before being connected)
c) submit whatever info HMRC insists on having to fill in the gaps. 
d) get the company closed down 

It will cost money, but finding an accountant to do some of the above for you will be the most effective way forward.

Thank you so much for such a comprehensive reply.

I have just done a) find the company.

I searched on companies house and it says the company is dissolved as of April 2024.

What does this mean? Have companies house closed down the company? Is this better for me?
Do I need to do anything now? Does this stop me ever being self-employed or running a ltd company in the future?

Bookworm105

it has no impact on being self-employed or running a ltd company in the future
Can you divulge who took the action to strike it off? Companies House or HMRC?

what has happened to the company bank account?

however, don't start a company unless you have been advised by an accountant that you having one is best for your circumstances (and that rarely involves being limited from the get go)

there is no way of knowing if HMRC or CH have passed debts to a debt recovery agent and they are tracing your movements through to your current address. But I would somehow doubt it for the modest sums at stake in respect of  non filing fines 

redmel1621

Bookworm105 said:

it has no impact on being self-employed or running a ltd company in the future
Can you divulge who took the action to strike it off? Companies House or HMRC?

what has happened to the company bank account?

however, don't start a company unless you have been advised by an accountant that you having one is best for your circumstances (and that rarely involves being limited from the get go)

there is no way of knowing if HMRC or CH have passed debts to a debt recovery agent and they are tracing your movements through to your current address. But I would somehow doubt it for the modest sums at stake in respect of  non filing fines 

It says on the 'Gazette' that the Registrar of Companies has dissolved the company and advises it to be struck off. I am assuming this means Companies House took the decision to dissolve the company.

I definitely will not be restarting a company any time soon. It is just something I really want to pursue again in the future. I have far too much going on in my day job, but once things have settled and I have more time, I definitely want to pursue my passion again and try to make a go of it. I will take the advice of an accountant from the beginning next time and let them sort everything out for me properly.

Thank you for responding.

daveyjp

The company will have been struck off.  Look under the Filing History tab on the company page on Companies House and all the documents relating to the strike off action will be there.