INS5108 - Defunct Companies

Companies struck off

Action Sequence 

The Assessing Office is advised when a company is struck off by a work item being created on worklist AAPR (Amend Accounting Period List).

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.

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Action Sequence

Follow the guidance at COM2012 to deal with the work item on worklist AAPR. You should also consider taking the following actions:

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All cases

1. 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.
2. 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.

1. Advise EIS Worthing/Edinburgh St Giles if charges have already been transferred there.
2. 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.

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When former members agree to pay

1. Ask for the payment to be made against the CTSA year quoting the UTR and relevant AP details.

Exceptionally if you need to set up a record on SAFE 

1. Set up the company on the SAFE system
2. Make any assessments needed to bring the payment into charge using manual procedures.
3. Return form C90 to APS confirming that an assessment(s) will be made and showing the expected assessing date.
4. Do not issue any assessment notices to the company.
5. Clear APS records when the charges are cleared by form C90 payment.

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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) 

1. 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.

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Continuing liability because the business continues

1. Encourage the former directors to take steps to have the company restored, or failing this,
2. Assess the former directors personally for the period from dissolution.

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Company restored

1. 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.

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Former members do not agree to pay, case is not referred to EIS Worthing/Edinburgh St Giles or company not restored

1. Ask the Recovery Office to remit any outstanding tax under Class 2.
2. Ignore any unassessed liability.