INS5108 - Defunct Companies
Companies struck off
Action sequenceThe Assessing Office is advised when a company is struck off by
Company Extracts Section Centre for Revenue Intelligence (CES) on
form CES25 following winding up and form CES2 in other cases.
If exceptionally the Recovery Office learns from a source
other than the Assessing Office that a company has been struck off
it will send the case papers to the Regional Office or in Scotland
Edinburgh St Giles with a report of all outstanding
liabilities.
Interest charges
When a company is struck off there is no requirement to raise any credit interest ( INS5108a), debit interest ( INS5108b) or late payment interest ( INS5108c). However if a company makes arrangements to pay the outstanding tax by instalments then calculate late payment interest and include it in the arrangement. Information on how to raise the late payment interest charge is provided in COM, business area Interest, Clerical Calculation Of Late Payment Interest.
Action Sequence
The Assessing Office on receipt of form CES2 or CES25 should follow steps 1 to 18 as appropriate:
All cases
- Use Function ACTP (Amend CT Payer Details) to enter the Date
Dissolved or Struck Off (otherwise removed from the Companies House
register) and if there are outstanding arrears take a print of
screen TXP102D.
- Use Function VTPR (View Taxpayer) to check if a CTA ( INS5108d) Reference exists and if so
- Enter the CTA reference onto a form CZ5
- Put a cross in box 71
- Send CZ5 to APS
- Obtain details of any other uncleared charges on computer records from APS and non- computer records from the Network Unit and the Recovery Office as appropriate.
Mark any request to the Recovery Office ‘ Immediate’ and ask for collection of any outstanding charges to be suspended (you will need to liaise with the Recovery Office as to the outcome).
- Advise EIS Worthing/Edinburgh St Giles if charges have already
been transferred there.
- Try to persuade the former directors to pay if there
- is tax outstanding and/or
- is a likelihood of further amounts being due from the company including tax on the concessional informal winding up basis
- were assets which were shared among former directors/shareholders.
When former members agree to pay
- Ask for the payment to be made against the CTSA year quoting the UTR and relevant AP details.
- Set up the company on the APS system using function IVT INPCRA
- Make any assessments needed to bring the payment into charge
using manual procedures.
- Use function IVT INP457 showing the full amount of the charge.
- Return form C90 to APS confirming that an assessment(s) will be
made and showing the expected assessing date.
- Do
not issue any assessment notices to the company.
- Clear APS records using function IVT INPCRA when the charges are cleared by form C90 payment.
Former members do not agree to pay or an agreed payment is not made
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)- Ask EIS Worthing/Edinburgh St Giles to consider restoring the company to the companies Register. Send the company file with a report covering
- the arrears as shown on the dissolution printout from APS
- any unassessed liability
- the amounts potentially recoverable
- any available information on recovery prospects.
Continuing liability because the business continues
- Encourage the former directors to take steps to have the
company restored, or failing this,
- Assess the former directors personally for the period from dissolution.
Company restored
- Vacate as invalid any assessments made on either the company or the former directors for the ‘company business’ between the date of dissolution and restoration.
Former members do not agree to pay, case is not referred to EIS Worthing/Edinburgh St Giles or company not restored
- Ask the Recovery Office to remit any outstanding tax under Class 2.
-
- Ignore any unassessed liability.
