HMRC Objection to Strike Off 

HMRC objection to Strike Off . Written by: John A Waller. Director. Reviewed June 11th, 2024.

You have received a letter from the Companies Register stating that HMRC opposes the dismissal of a company that you remain the Company’s director.

So what next?

Who can Object to Striking Off?

When a limited company is being dissolved, being removed from the Companies House register represents more than just the closure of its business operations. This process, termed ‘striking off,’ requires directors to settle all outstanding debts within twelve months of closure, proving the company’s financial stability and suitability for dissolution. It’s crucial to emphasise that insolvent companies must avoid this process

HMRC Objection to Strike Off 

When an objection to a strike-off occurs, often a company fails to finalise matters with HMRC and owes outstanding tax. Therefore, HMRC stops the Company from being struck off the register until tax paid and HMRC clearance. However, creditors may object and request the striking of action suspended if debts remain unpaid. Therefore, you should receive a letter advising the suspension of the compulsory strike.

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HMRC objection to strike off – Requirements for Striking off a Dormant Company

Care needs to be taken about the company’s actions to fund repaying unpaid taxes, as it may stop it from being struck off. An example, if the company were judged to be trading again, the application would be withdrawn. A requirement for a company to be struck off the register. The company remained dormant and not traded for a period before removal.

Voluntary Strike off for Limited Companies

Using form DS01 to have your company struck off the register requires you to therefore send a copy of the application to all company creditors within seven days of applying. 

Should the company have outstanding tax? Then Companies House  ensure their application is published in the Gazette, every application to dissolve once HMRC picks it up and checks for HM Revenue and Customs clearance.

The process notifies creditors and any other interested party of requests by debtor companies looking to dissolve/dismiss therefore enabling creditors to ensure they pay any outstanding debt before dissolution.

Many company directors abuse the system by trying to close an insolvent company.

Directors must seek advice on how to close down an insolvent limited company from a licensed insolvency practitioner.

However, the correct process remains to enter a creditor’s voluntary liquidation, or wait for the courts to wind it up and passed to the official receiver for compulsorily liquidated.

Involuntary Strike off by Companies House?

Companies house action usually when the company remains dormant for a considerable time. Though not actioned by the directors, it can be stopped even though the company’s house automatically sought to remove it from the register. 

For assistance, please contact the team at HBG Advisory.

HMRC objection to strike off – How to deal with an objection?

Outstanding taxes need to be paid to HM Revenue and Customs to remove their objection.

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

Need HMRC arrears advice?

Considered by many directors a thorny subject. But it does not go away and requires attention to avoid further escalation. Please get in touch with one of the team at HBG Advisory today on 0330 056 3120.

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