Cubaintime
New Member
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Hi,
In June 2020 I cased trading under my Ltd Co. Long story but in good faith I deregistered for VAT Dec 19. Our lease was up and landlord gave the unit to another tenant (my understanding is this business is owned by board of management. We were promised a new unit but last minute they increased the rent x 2). I decided to close as at that point I couldn't find another unit suitable and our online business was not strong enough. We were due to vacate in March and I notified my accountant I decided to close. Covid hit- new tenant couldn't move in. We couldn't get access for one month and I then continued to trade online only. With lockdowns etc us vacating took much longer and long story short we exceed the VAT threshold as online sales were obviously much higher due to covid. In the meantime as online was so strong and a unit in NI came up I set up a new UK company and began trading under that from July 1st.
My predicament is - and I stupidly overlooked the fact that I exceed the VAT threshold. Last year was such a rollercoaster that it didn't even cross my mind until my accountant called me. My accountant suggested I might be best leaving things to be struck off. I'm worried about the ramifications of this- ltd liability goes out the window etc. To put it into perspective I can file my accounts and pay the small corporation tax I'm liable for. I have no debts. But if I file and also submit my B1 I guess a red flag will be raised. Or am I better to engage with revenue on this and try to go down the route of voluntary strike off? I understand my excuse won't wash with them as such but can I negotiate with them- the old co doesn't have any money as such as the new company is very lean- ticking over, no debts but just pays a pretty average salary and I have one PT worker.
My accountant said he can't officially advise but small micro businesses are more than likely to be struck off involuntarily without any legal action but it sounds a little risky and not sure what the worst that could happen is if I was unlucky
In June 2020 I cased trading under my Ltd Co. Long story but in good faith I deregistered for VAT Dec 19. Our lease was up and landlord gave the unit to another tenant (my understanding is this business is owned by board of management. We were promised a new unit but last minute they increased the rent x 2). I decided to close as at that point I couldn't find another unit suitable and our online business was not strong enough. We were due to vacate in March and I notified my accountant I decided to close. Covid hit- new tenant couldn't move in. We couldn't get access for one month and I then continued to trade online only. With lockdowns etc us vacating took much longer and long story short we exceed the VAT threshold as online sales were obviously much higher due to covid. In the meantime as online was so strong and a unit in NI came up I set up a new UK company and began trading under that from July 1st.
My predicament is - and I stupidly overlooked the fact that I exceed the VAT threshold. Last year was such a rollercoaster that it didn't even cross my mind until my accountant called me. My accountant suggested I might be best leaving things to be struck off. I'm worried about the ramifications of this- ltd liability goes out the window etc. To put it into perspective I can file my accounts and pay the small corporation tax I'm liable for. I have no debts. But if I file and also submit my B1 I guess a red flag will be raised. Or am I better to engage with revenue on this and try to go down the route of voluntary strike off? I understand my excuse won't wash with them as such but can I negotiate with them- the old co doesn't have any money as such as the new company is very lean- ticking over, no debts but just pays a pretty average salary and I have one PT worker.
My accountant said he can't officially advise but small micro businesses are more than likely to be struck off involuntarily without any legal action but it sounds a little risky and not sure what the worst that could happen is if I was unlucky
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