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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4100
Experience:  FCCA FCMA CGMA ACIS
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I run a small company which has been trading for a few years

Customer Question

I run a small company which has been trading for a few years but has never really made money. In its men and arts I set it up as a charity but never registered it as such. I have got into a bit of a mess with it all and have just received a tax bill for over £10,000 - £5,000 or which is fines. I need help to sort out the fines / bills and to close the company.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

I am at a slight quandary as to who has received the tax bill, you or the company? Also what exactly are these bills for? Please let me have some more information so I can try to help you.
Customer: replied 3 years ago.
The bills are to the company and about 50% are for fines and 50% for estimated tax owed.
Expert:  bigduckontax replied 3 years ago.
Right, you get round the tax bill my filing Corporation Tax (CT) returns for all those missing years. CT returns must now be done on line so you will have to register the company for this and received a Government Gateway authority which will enable you to access the appropriate part of the net. At the same time as you file CT returns on line there is an option to file accounts with Companies House also, so that gets that out of the way too.

You may not be able to go back too far in time to file CT returns. I would write to the company's tax office and ask if they require a CT600 to be completed for those earlier years. I must say the penalties imposed appear a trifle dramatic, but they do build up if you are not careful. You may well need to employ a local, trusted accountant to help unscramble the rather unsavoury position in which you find yourself with your company.

There is, of course, another solution. If the company has insufficient funds to meet these liabilities just let it go into insolvency. You and the company are legally two different persons an in general terms you are not liable for the company's debts and vice versa.