What action is required when company is struck off
We have seen an increased number of tax investigation cases where the directors have put a company into liquidation as the company is unable to pay its debts to HMRC and is insolvent but HMRC use various powers within the legislation to transfer the liabilities onto the directors in a personal capacity. Some examples of these are mentioned below:
I have read that Under Para 19 (1) Schedule 24 of the Finance Act 2007, penalties charged on a company can be transferred in full onto a director where there is deliberate or fraudulent behaviour causing an underpayment of tax. Also, Section 64 of the Social Security Administration Act 1998 gives HM Revenue & Customs the power to issue a Personal Liability Notice (PLN) to hold those behind the company personally liable in certain situations. If a director, manager or secretary of a business fails to pay National Insurance Contributions (NIC) and HM Revenue & Customs (HMRC) consider that non-payment was due to fraud or neglect, then they have the power to issue the individual with a Personal Liability Notice (PLN).
However if a company has been struck off by Companies House after the first year due to not filing the annual accounts/confirmation statement but was trading during that period, would you inform Companies House, Tax office regarding this and report to the National Crime Agency under the money laundering regulations? I feel it is unfair that Directors get away in their first year of trading without paying the Statutory liabilities and just move onto formation of a new Company.
Your thoughts will be appreciated.