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Enforcement powers

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04 October 2011

Issue: 4324 / Categories: Forum & Feedback , Companies , VAT

A company has been trading for about ten years, but has not paid corporation tax for four years due to the ‘critical personal need’ of the directors amd also owes VAT

A private corporate client started a small business about ten years ago and incorporated in 2003. As a result of overwhelming critical personal need the directors have not paid the corporation tax due for the last four years. The company de-registered from VAT but owes tax in this respect as well.

Overall the total amount owed to HMRC is approximately £19 000. Due to the near collapse of the business at one point it has not been possible to repay HMRC which strangely do not seem too bothered. However even if the business does recover it could not pay off the £19 000 owed to HMRC for many years.

The directors have asked what HMRC would be likely to do if the company merely ceases trading and removes itself from the company register.

...

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Enforcement powers

© Copyright LexisNexis 2024. All rights reserved.

04 October 2011

A company has been trading for about ten years, but has not paid corporation tax for four years due to the ‘critical personal need’ of the directors amd also owes VAT

A private corporate client started a small business about ten years ago and incorporated in 2003. As a result of overwhelming critical personal need the directors have not paid the corporation tax due for the last four years. The company de-registered from VAT but owes tax in this respect as well.

Overall the total amount owed to HMRC is approximately £19 000. Due to the near collapse of the business at one point it has not been possible to repay HMRC which strangely do not seem too bothered. However even if the business does recover it could not pay off the £19 000 owed to HMRC for many years.

The directors have asked what HMRC would be likely to do if the company merely ceases trading and removes itself from the company register.

...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4324

Categories: Forum & Feedback [1] , Companies [2] , VAT [3]

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