Discussion
I'm after some urgent advice with regards to paying tax ...
I decided to create a small limited company as a side hustle, selling colourful phone cables. I created the company in October 2018 and closed it this October, as it didn't do as well as I had hoped. Unfortunately, I simply did not have the time to run it on the side, as the duties in my main job changed dramatically.
I've closed the company and obviously I owe tax. I sold £1957 of product and the VAT owed is £327.16 ... I've received the below from HMRC:
Do I just fill this in and include a cheque for what I owe? Do I also need to include accounts? If so, is this something simple I can create or do I need to speak to an Accountant?
I feel a bit naive and alone with regards to this. I took my eye off the ball somewhat. The last thing I want to do is get in trouble, so want to pay what is due! I'm also going on holiday tomorrow, so not the best timing. Apologies - Any help is hugely appreciated!
I decided to create a small limited company as a side hustle, selling colourful phone cables. I created the company in October 2018 and closed it this October, as it didn't do as well as I had hoped. Unfortunately, I simply did not have the time to run it on the side, as the duties in my main job changed dramatically.
I've closed the company and obviously I owe tax. I sold £1957 of product and the VAT owed is £327.16 ... I've received the below from HMRC:
Do I just fill this in and include a cheque for what I owe? Do I also need to include accounts? If so, is this something simple I can create or do I need to speak to an Accountant?
I feel a bit naive and alone with regards to this. I took my eye off the ball somewhat. The last thing I want to do is get in trouble, so want to pay what is due! I'm also going on holiday tomorrow, so not the best timing. Apologies - Any help is hugely appreciated!
That's a Corporation Tax slip - nothing to do with VAT.
https://www.gov.uk/government/publications/corpora...
Did you even register for VAT? Sounds barmy for £2,000 of sales.
https://www.gov.uk/government/publications/corpora...
Did you even register for VAT? Sounds barmy for £2,000 of sales.
Thinking I was doing the right thing, I believe I applied for corporation tax ... Hence the above slip. I partially wish I hadn’t bothered with this, as it’s all very confusing - and now I’m panicking! 
I’m happy to pay the VAT charged. Can I just send in the amount owed? Is it worth me contacting HMRC via email?
I’m happy to pay the VAT charged. Can I just send in the amount owed? Is it worth me contacting HMRC via email?
You have to register for VAT when you know you will turn over at least 80k. If you didn’t register they won’t be asking for it.
I would pay the corporation tax on any profits (not turnover) and apply to have the company struck off.
If you are worried you can get an accountant to do it for a few hundred pounds at most. I suspect the £327 won’t be required so you will both save money and get it closed down properly.
I would pay the corporation tax on any profits (not turnover) and apply to have the company struck off.
If you are worried you can get an accountant to do it for a few hundred pounds at most. I suspect the £327 won’t be required so you will both save money and get it closed down properly.
Edited by dmahon on Monday 9th December 06:38
Sounds like you never thought to get professional help.
Did you register the company for VAT? If you did not, then VAT is not an issue.
When a limited company is set up at Companies House, after a few weeks, if the owner of the company does not formally notify HMRC that the company has been set up (which they are legally obliged to do), HMRC will allocate a Corporation Tax number to the company anyway. That long row of digits at the bottom of the payslip is the company's Corporation Tax reference number.
Although you are showing us a payslip, you are not showing the rest of the document to which it is attached. As the company was formed in October 2018, it is likely that Companies House allocated it a financial year ended 31 October. Therefore the first set of accounts that needed to be prepared would cover the period from the date of incorporation through to 31 October 2019.
If the company actually made any taxable profits (which is very doubtful), then it would be liable to pay Corporation Tax on those profits. However, Corporation Tax is payable NINE MONTHS after the end of the accounting period. So any Corporation Tax due (which is unlikely) would not be payable until some time in July 2020 (i.e.nine months after October 2019).
I would hazard a guess that the payslip you are showing is attached to HMRC's normal reminder that the company's year end has recently passed and that Corporation Tax will become payable nine months down the line. Read what the accompany note says carefully to ensure that is the case.
You say that the company is closed down. Is that really the case? Have you struck the company off the company register or has it been dissolved or liquidated some other way./
Speak to an accountant.
Did you register the company for VAT? If you did not, then VAT is not an issue.
When a limited company is set up at Companies House, after a few weeks, if the owner of the company does not formally notify HMRC that the company has been set up (which they are legally obliged to do), HMRC will allocate a Corporation Tax number to the company anyway. That long row of digits at the bottom of the payslip is the company's Corporation Tax reference number.
Although you are showing us a payslip, you are not showing the rest of the document to which it is attached. As the company was formed in October 2018, it is likely that Companies House allocated it a financial year ended 31 October. Therefore the first set of accounts that needed to be prepared would cover the period from the date of incorporation through to 31 October 2019.
If the company actually made any taxable profits (which is very doubtful), then it would be liable to pay Corporation Tax on those profits. However, Corporation Tax is payable NINE MONTHS after the end of the accounting period. So any Corporation Tax due (which is unlikely) would not be payable until some time in July 2020 (i.e.nine months after October 2019).
I would hazard a guess that the payslip you are showing is attached to HMRC's normal reminder that the company's year end has recently passed and that Corporation Tax will become payable nine months down the line. Read what the accompany note says carefully to ensure that is the case.
You say that the company is closed down. Is that really the case? Have you struck the company off the company register or has it been dissolved or liquidated some other way./
Speak to an accountant.
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