Fine for not submitting P35 last May.

[alivingstone]

Hi,

My contracting company stopped trading in June 2002 when my contracts dried up and the company ran out of money.

It appears a P35 should have been submitted in May 2003 to cover PAYE for the year 2002 - 2003 as salary was taken from the company for the first couple of months of the 2002 tax year.

My accountant neglected to do this. As he puts it: the company was insolvent and would be unable to pay him so he didn't do any work on the accounts (or tell me about it)... >D

The Inland Revenue (nice people that they are >: ) now say that I must pay a £400 fine immediately and produce the P35 or they will take me to court.

My question is who is liable for this fine?
Is it me or the company?

The accountant says to ignore this and tell them the company is bankrupt and there is no point them pursuing this as there is no way it can be paid.

He has only just today got round to completing a 603a application to strike the company off and I don't exactly trust his advice.

Can anyone tell me if I must pay the fine personally?

Many Thanks,

Anthony.

[eric12b]

FOR FCUKS SAKE >: >: >: >:

Have the IR got nothing better to do than chase up someone for £400

Fcuking Hell - shooting is too good for them >: >: >:

Tell them to go whistle in the wind

[Robot]

I would say the fine is your responsibility as I assume you are the company Director.

“He has only just today got round to completing a 652a application to strike the company off and I don't exactly trust his advice”

The Inland Revenue should object to the company being struck off, due to the outstanding fine.

“The accountant says to ignore this and tell them the company is bankrupt and there is no point them pursuing this as there is no way it can be paid”

When the company closed was there an overdrawn director’s loan account?

If yes, I wonder if the Inland Revenue could liquidate the company the liquidator would then chase the debtor (you), which means your house and car is at risk. I also wonder if they have de-minis limit set for this.

Do any of you busy accountants know the answer?

[Simon SJDaccountancy]

Couple of things here:

1. The fine cannot exceed the amount of PAYE, NI due at that time, so if the worst comes to the worst it may be reduced on that basis;

2. The Company may be insolvent, but it depends on why it is insolvent as to whether the Revenue would bother to persue this. If it is insolvent because the owner took too much out of the Company (ie has an overdrawn loan account with the Company), then they will persue. Pretty much anything else and you will be OK.

Put the 652a in, and hope the Revenue don't object - if it goes through OK the debt will die with the Company.