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Where Taxpayers and Advisers Meet

DS01 - Rejected

Joined:Wed Aug 06, 2008 3:41 pm
DS01 - Rejected

Postby 170872 » Wed May 06, 2020 12:04 am

Hi, I have a question one of my friend has send it DS01 to close the company. The company's bank has been closed and no activity for two years.

The DS01 was rejected as there was CIS debts outstanding with HMRC. As the company have no money,
There is no assets in the company either and no loans outstanding debts apart from this HMRC debts.

Can the director write to HMRC to say there is no money in the company rather then going through liquidator which cost him lots of money?

if the director liable to pay this debts?


Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen

Re: DS01 - Rejected

Postby wamstax » Wed May 06, 2020 12:17 am

Assuming for the moment that this was a creditors liquidation and the director has not been guilty of any misfeasance or inappropriate drawings from the company then prima facie there would be little risk that HMRC could successfully have any debt paid by the director ( unless of course he was party to deliberate or fraudulent failures to address the company's normal trading liabilities in an appropriate manner).

If the company's illiquidity merely arose from the failure of the company to achieve enough to pay its debts and the director did not act inappropriately if I was in your friends position I would just leave HMRC and the liquidator to fight it out.

I do not follow why your friend would be paying the liquidators fees if this was a creditors liquidation but this is the danger of trying to address matters generally without the full facts. I would recommend that your friend takes advice from an insolvency practitioner before doing anything.
regards and hope this helps
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