Small Business - Late Filing Penalties

[Sare Heid]

My small ltd company has been hit with a hefty penalty charge for late filing of accounts which it is unable to pay since it has effectively stopped trading as bank closed accounts over longstanding dispute and offset available funds to reduce overdraft.

CH passed matter to DCA to collect payment, I told them business wasnt trading, had no income or assets (only me) and therefore couldn't pay.

DCA has now instigated proceedings against company at local CC for payment of penalty charge with costs, even though I had written to them explaining that it was a pointless exercise.

 

Can anyone offer some advice as to how to deal with this, I'm a bit concerned that DCA threatened that once they got a CCJ, if they couldnt get the money from the company they'd expect me to pay!

[MARTIN3030]

Couple of questions.

Is it HMRC that have applied penalties ?

Who is CH ?

Who is DCA ?

[Sare Heid]

Thanks for quick response Martin3030,

 

Penalties were applied by Companies House.

CH = Companies House

DCA = Lewis Debt Services, the debt collection agency employed by CH.

 

Hope this helps, would appreciate any thoughts on how best to deal with this.

 

Cheers,

 

SH

[MARTIN3030]

Will move thread from here.

[DBLincoln]

If the company is no longer required would suggest that you apply to Companies House[CH] to have the company removed from the register.

 

You will need to apply on a form DS01 and it will cost £10. If you are VAT registered and have a PAYE scheme I would suggest that you deregister in order that they do not object, even if you owe money.

 

You will need to write to all known Creditors, inc CH, and I would suggest that you get a proof of posting from the post office for each letter.

 

When CH receive this they will advertise it in the London Gazette and if no one objects within 100 days the company will be removed form the Register.

 

If they do object, you will have complied with your duties as a Director and although there may be an objection first time, you will not need to do anything further.

 

Hope this helps.

[Sare Heid]

Hi DBL,

 

Thanks for you advice.

 

I really would like to keep my company as their is still a demand for the service I provide.

 

I'm not refusing to pay the penalty, only disputing that it was applied unfairly, since it was a government funded / partly owned bank that closed the company bank accounts and effectively prevented the company from trading & employing accountant to do the business accounts.

 

I would be interested to know if there is any chance of successfully defending this action.

 

If not and I have to accept defeat, whats the worst that can happen?

 

I really do feel that the CH / DCA has acted wrongly in this since they have raised an action which will take up court time, incurring more costs which they will then add to the existing penalty charge, even though I wrote to them explaining company situation.

 

Grateful for any advise or constructive comments.

 

Cheers,

 

SH