Enforcement powers

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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