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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I started a business consultancy service limited company with

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I started a business consultancy service limited company with no office or assets in Sept 2013 and it flopped during the year leaving me in business account overdraft. I wrote to companies house to have the company struck off and I am waiting to hear from them. Concerned about doing my taxes I wrote to them and explained the situation. I wanted to submit my tax showing the loss. I needed a login and password. I was told that as I was asking for the company to be struck of submitting my tax was a waste of time and they would strike off the company a couple of months after April 2015.
I am concerned because I am also responsible fro my SA tax year. Do I also not bother to submit these as they are part of the company that I have asked to be struck off. I have not earned form any other source on that time.
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Have you been in touch with HMRC about the company tax position at all? When did the company become non-active?

Were you completing annual personal self-assessment tax returns prior to the limited company start up?
Customer: replied 2 years ago.

The HMRC said that I needed to get a Unique Tax Reference before they could process my accounts from Companies House. Companies House said that it was not work pursuing a UTR if the company was due to be struck off. The company has been inactive for about 3 months.

Expert:  TonyTax replied 2 years ago.
Thanks.

It's not Companies House who run the corporation tax system so they should have referred you to HMRC. You should call the corporation tax helpline on the number here, explain the situation and ask for guidance.

Where companies have been set up and have either not been used or when they have been used, they have failed fairly quickly, HMRC will in many cases not require CT600 tax returns to be submitted, not least because nobody will prepare any accounts. If your company started in September 2013, you would have been due to have received a CT600 (possibly two) to complete in October 2014. The first would run for 365 days from the incorporation date and the second would run from day 366 to the end of September 2014.

If you have been issued with personal self-assessment tax returns, then you need to complete and submit them even if there is nothing to disclose other than the fact that you were a director. You might be able to persuade HMRC to cancel the returns if you call them on the number here.

I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.

Apologies if I have not been clear enough.

I called the corporation Tax line who said that I needed a UTR for the company that I had registered that would be given to me by Companies house. Companies house said that there was no point in me registering the company for a UTR if I was applying for it to be struck off.

Once the company was struck off I was told the HMRC would not be interested in me submitting accounts, if indeed I could get someone to prepare them.

My concern was that my SA is linked to the company as I was sole director and that I understood that HMRC would not process my SA separately from the company.But how do I do that if my company is struck off?

I have got into a complete muddle on this and do not know how to proceed for the best

Expert:  TonyTax replied 2 years ago.
A UTR (Unique Tax Reference) is issued by HMRC, not Companies House. Companies House inform HMRC of new company set ups or HMRC have access to that information if they are not directly informed. You should have registered your company with HMRC by completing the appropriate forms which you can read about here. As HMRC appear to have washed their hands of it, if I were you I'd accept that without question.

Self-Assessment is completely separate from Corporation Tax. Company directors are supposed to complete annual personal self-assessment tax returns but many don't unless they are higher rate taxpayers. If you are confident that you will have no personal tax liability as a result of your running the company, then you probably don't need to complete returns.

As it is, if you told HMRC now that you had been a director since September 2013, they would issue a tax return for the 2013/14 tax year. If you want to take a belt and braces approach, call the self-assessment helpline, explain your situation and listen to what they say. Even if they issue a return for 2013/14, all you will need to disclose is your income between 6 April 2013 and 5 April 2014. In my experience, given your situation, most people would not bother.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

I am concerned that my inactivity with the company I have asked to be struck off will lead me into penalty tax for non submission of accounts. Although I have been advised by companies House to do "nothing" and wait to hear that the company has been struck off ( companies house told me the would happen a couple of months after financial year end in April). I m worried that HMRC might take action against my non submission of accounts.

Expert:  TonyTax replied 2 years ago.
Many companies which go bust don't have a final set of accounts done, especially if there has been little activity, as nobody will pay an accountant to do them.

You will need to contact HMRC to find out if a UTR was issued and if they are expecting accounts and a CT600 to be submitted. It would be advisable to do so as the penalties for late submission soon rack up.
Customer: replied 2 years ago.

Hi

I received an email today saying that I have 7 days of unlimited questions with Just Answer following you response to my tax question.

Are these 7 days of questions free of cost?

Expert:  TonyTax replied 2 years ago.
I wouldn't know the answer to that as I don't get involved in promotions. You'd have to clarify that with just answer.
Customer: replied 2 years ago.

Thanks..will do.

Expert:  TonyTax replied 2 years ago.
No problem.

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