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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hi Alex I am at the Form DS01 stage with the striking off

Customer Question

Hi Alex

I am at the Form DS01 stage with the striking off of my company. I have stopped trading for three months but two things have now happened that have caused me concern in relation to the definition of ceased trading:

I have had a credit form HMRC re vat due to me on completion of final vat return for the company and Lloyds bank, my business bank, have now taken off £10 on service charges out of the blue as a debit. Does this mean that my company did not stop trading?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts : Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Customer :

Hi

Alex Watts : No, this does count as trading.
Alex Watts : You are not raising invoices etc
Alex Watts : Can I clarify anything?
Customer :

Great also with the HMRC refund am I right in saying that I am not permitted to take the refund out as money to myself? It must remain in the bank account until the company is struck off?

Alex Watts : You are correct,
Customer :

After the company is struck off what happens to the physical money?

Alex Watts : It belongs to the Crown.
Customer :

SO what do I do with it - send it to them?

Customer :

Also should I close my bank account before striking off application via DS01

Alex Watts : No, because it won't make any difference, it belongs to the crown,
Alex Watts : Get the refund, then strike off
Customer :

But the bank will have it.

Customer :

It is physical money

Alex Watts : It goes to the crown.
Customer :

Alex - what does that mean

Alex Watts : The government get it
Customer :

How do they get it ?

Customer :

automatically whne account is closed?

Customer :

and company struck off

Alex Watts : yes it's automatic.
Customer :

To recap, I wait final vat refund, close bank account and then send in form DS01? Is there any way I am able to send in Form DS01 before refund paid and then close account when refund made?

Alex Watts :

Sadly no - once the bank knows it is going to be struck off they will hold the funds

Alex Watts :

Does that clarify?

Customer : Alex What is the point of me waiting for the refund which is from the HMRC not the bank if it is not going to benefit me it may take a while to get the refund which is delaying the strike off process time.
Alex Watts :

You should get the refund then apply to strike off

Alex Watts :

If you strike off and the refund is delayed, the Crown gets it.

Customer : Does the crown not get it anyway whether I wait for refund or not?
Alex Watts :

Well you can take the money out of the Company but it belongs to the Company

Alex Watts :

It can be distributed to shareholders and then closed

Alex Watts :

That may be how you want to do it

Customer : At what stage can the money be distributed to shareholders?
Alex Watts : After you get it in the account.
Customer : Should it not be kept in in case creditors wind up officially and funds need to be distributed? Is taking the money out not considered as trading?
Alex Watts : You haven't raised invoices. But if no creditors come forward then it can be distrubuted.
Alex Watts :

If this answers your question could I invite you leave feedback on my service which I hope has been excellent today, if you need more information or help then please click reply.

Please remember that I am always happy to help if you have future questions, even if I am in Court I can normally respond within a few hours. For future information, please start them with ‘For Alex W’.

Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/

Customer :

Hi Alex - apologies about not concluding - just one more question - I desparately could do with the HMRC amount of £650 that was deposited into the account this month - is it illegal for me to take this out if the company has ceased trading and before it is struck off? Am I able to take it out then deposit it in again within the next two months?

Customer :

Hi Alex still awaiting response. Thank you.