What is an Objection to a Striking Off Application?
An objection to a Striking Off Application is a formal challenge to the process of legally dissolving a company. This objection can be raised by shareholders, creditors, employees or others who may be impacted by the company’s dissolution.
Commonly, it is HMRC themselves that lodges this objection due to unpaid taxes.
When Can You Object to Strike Off?
Objections to a company strike off can be raised by interested parties, such as creditors, employees, or shareholders, in the following situations:
Lack of proper notification about the company’s intention to dissolve
Outstanding debts owed by the company
Ongoing legal claims against the company
Inaccurate or misleading information in the strike off application
Suspected misconduct or illegal activities by the company’s directors
Objections can only be made after the proposed strike off has been advertised in The Gazette, and must be supported by relevant evidence.
Dissolution Section Companies House Crown Way Cardiff CF14 3UZ
How do You Object if the Strike Off has Already Happened?
If the dissolution has already happened, you’ll need to apply for a court order to restore the company before you can take any action, such as debt recovery against it.
To apply, fill in form N208, include the £280 court fee and a witness statement, and send it to the appropriate county court[2]Trusted Source – GOV.UK – Form N208: Claim form (CPR Part 8).
HMRC has a full guide to company restoration here.
Can HMRC Object to Company Strike Off?
Yes, HM Revenue and Customs (HMRC) can object to a company’s strike off and I deal with many directors who have attempted to dissolve as a means of evading debt but end up having to change tack due to HMRC’s response.
HMRC’s objection is a protective measure to ensure that all due taxes are paid and that companies do not evade their fiscal responsibilities.
How Do Those Objecting Know the Company Is Being Dissolved?
Those objecting to a company’s dissolution typically find out about the company’s intent to dissolve through notices published in the Gazette, the official public record. When a company applies for striking off, it is required to place a notice in the Gazette, which serves as a public announcement of its intention to dissolve.
HM Revenue and Customs (HMRC) specifically has a dedicated team that monitors these Gazette notices. This team’s primary focus is to identify companies that are applying for strike-offs but have outstanding tax liabilities or unresolved tax issues.
What Happens if the Objections are Upheld?
If objections to a company’s striking-off application are upheld, the process of striking off is halted, and the company remains active and registered.
The company will have to address the issues raised, which could involve settling outstanding debts, resolving legal disputes, or rectifying any discrepancies in its application. This may also involve negotiating with creditors or dealing with legal claims.
During this period, the company continues to exist as a legal entity and must fulfil all the usual statutory obligations, such as filing annual accounts and reports.
If the company resolves the issues to the satisfaction of the objecting parties, it may reapply for striking off once all concerns have been adequately addressed.
What Should you do if you Receive a Strike Off 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, if it 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 close the company.
Need Advice?
For company debt help, HMRC arrears advice or expert advice about closing a company, speak with one of our specialist team members today on 0800 074 6757. Alternatively, use the live chat facility at the bottom of the page to get an answer fast.
FAQs on Striking Off Applications and Objections
What steps should you take if HMRC objects to your company’s strike off?
If HMRC objects to your company’s strike off due to outstanding tax liabilities, you should contact HMRC to arrange payment or discuss discrepancies in the claimed amounts. If the liabilities cannot be settled, seeking professional advice regarding insolvency might be necessary.
Can a company reapply for striking off after resolving objections?
Yes, once all objections have been resolved and any outstanding issues have been addressed, a company may reapply for striking off. However, it must ensure that all statutory obligations continue to be met until the application is successful.
What should you do if you disagree with the reasons for a strike off objection?
If you disagree with the reasons or the legitimacy of an objection, especially one from HMRC, it’s advisable to seek immediate legal or financial advice to address the dispute effectively and explore options for resolution.
References
The primary sources for this article are listed below, including the relevant laws and Acts which provide their legal basis.
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