You’ve received a letter stating that HMRC is objecting to the striking off of a company of which you are a director from the Companies Register.

The first questions you will probably ask is what does this mean and what can you do?

What is an Objection to a Striking off Application?

Objection to a Striking off Application means that, while a company owes HMRC outstanding tax, HMRC won’t let the company be struck off the register before it makes these payments. Any creditor may also objects and request that the striking of action be suspended,  until any outstanding liabilities have been paid.If this happens you will receive a letter informing you that the Compulstory Strike off is suspended.

Voluntary Strike off for Limited Companies

If you’ve voluntarily applied to have your company struck off the register using the form DS01, it’s a requirement that you should send a copy of the application to all of the company’s creditors within 7 days of filing the application with Companies House. Where the company owes any taxes to HMRC, HMRC will be one of its creditors. Even if you didn’t notify HMRC, Companies House automatically publishes the details of all companies applying to be struck off from the register in The Gazette.

The purpose of this process is to alert creditors to any applications from debtor companies applying to be dissolved / struck off and to enable the creditors to ensure the company pays any outstanding debts before it is dissolved.

What’s an Involuntary Strike off?

It may be that you haven’t applied to have the company struck off. If this is the case, it’s likely that the company has been dormant for a significant period of time and Companies House has automatically sought to strike it off the register. You will still need to settle the company’s outstanding HMRC tax liabilities.

What Should you do if you Receive an Objection from HMRC?

The simplest answer is that you will need to arrange to repay any outstanding taxes with HMRC before they will allow the company to be struck off the register.

If you disagree with the amount of outstanding tax specified in the objection letter, you should contact HMRC to discuss this further.

If the company cannot meet its outstanding tax liabilities (for example, where the company can’t pay its corporation tax bill), it is insolvent and liquidation rather than striking-off will be the appropriate way to close the company. If this is the case, then the application for the company to be struck-off should be withdrawn and you should seek company liquidation advice about the most appropriate way to terminate the company.

Requirements for Striking off a Dormant Company

Be aware that you should be careful about the actions the company takes to provide funds for repaying the outstanding taxes as it may be that actions taken would render it ineligible for being struck off. One example is if the company were deemed to be trading again, the application would have to be withdrawn as one of the requirements for a company being struck off the register is that it should be dormant and not traded for a period prior to its removal.

Need HMRC arrears advice?

We understand that this is a tricky area, which can be difficult to understand, yet it is important that you get it right or you might face difficulties later on. For company debt help, HMRC arrears advice or about dissolving or liquidating a company, speak with one of our specialist team members today on 08000 746 757. Alternatively, use the live support facility at the bottom of the page to get an answer fast.  Alternatively, you can contact senior turnaround practitioner Sue Collins on 07949 969 006.

Useful Resources and Related Content

The Potential Risks Associated with Dissolving a Company

Strike Off Your Company from the Company Register