If you deliberately try to avoid meeting your company’s liabilities to HMRC you risk serious allegations including director misconduct, which can lead to severe penalties. These can include:
You can be disqualified as a director for 2-15 years, which can negatively affect your life in several ways:
- You won’t be able to be a director of any UK company during this time
- You cannot be involved in forming, marketing, or running a company
- You may be banned from other roles and offices – for example, school governor or pension trustee
- You won’t be able to practice as a solicitor, an accountant, or a barrister
Breaking the terms of a disqualification order could also lead to a hefty fine or a prison sentence.
If it’s found that you’ve worsened the financial position of HMRC or any other creditors you could be held personally liable for some or all of the company’s debts. HMRC pursue their debtors through the courts, which can lead to personal bankruptcy for some.
An important point to remember about voluntarily dissolving a company with HMRC debts is that even if a strike-off application goes through, the tax body can apply to have the business reinstated to the register at any point in the future.
If you need any further information about striking off your company or currently owe money to HMRC, please get in touch with Company Closure for reliable advice. We operate an extensive network of offices around the country and can offer a free consultation to quickly establish your options.