I rightly f'd up

Tabb10

Right so I set up a startup in 2016 in the hopes of making the big bucks. We entered into an accelerator programme in which we had to register our business to be in. We registered our company as a Ltd. company. I am the director of this company. I am also working for a State body. Still with me? So anyways through doing some market research and a delayed product development phase, it was decided that this company wasn't going to work and we left it alone. Now 2 years later I'm seeing the repercussions of not tending to it. I went off travelling for the year of 2017. When I came back in 2018, I found that my whole financial situation has turned into ****. Basically, this startup which grossed no revenue, didn't cost us anything is now costing me thousands. A) There was no annual return filed for the company which is now fining me thousands for it. I have not filed for "Income Tax" in the 2016 or 2017 calendar year. So despite me having overpaid tax of a couple of a hundred euro through my PAYE job, I owe Revenue a thousand euro in fines. To say that I am panicking is an understatement. I have tried to cease operations with the company registration office but they have told me that the annual return must be filed first.

Is there anyway I can solve this mess? It seems at every corner I'm being screwed. I obviously know that this is my fault, but in fairness, there was absolutely no communication from CRO or Revenue telling me that these things were due. Can someone point me in the right direction as to how I can get back on the right track.

drunkmonkey

Tabb10 wrote: »

Right so I set up a startup in 2016 in the hopes of making the big bucks. We entered into an accelerator programme in which we had to register our business to be in. We registered our company as a Ltd. company. I am the director of this company. I am also working for a State body. Still with me? So anyways through doing some market research and a delayed product development phase, it was decided that this company wasn't going to work and we left it alone. Now 2 years later I'm seeing the repercussions of not tending to it. I went off travelling for the year of 2017. When I came back in 2018, I found that my whole financial situation has turned into ****. Basically, this startup which grossed no revenue, didn't cost us anything is now costing me thousands. A) There was no annual return filed for the company which is now fining me thousands for it. I have not filed for "Income Tax" in the 2016 or 2017 calendar year. So despite me having overpaid tax of a couple of a hundred euro through my PAYE job, I owe Revenue a thousand euro in fines. To say that I am panicking is an understatement. I have tried to cease operations with the company registration office but they have told me that the annual return must be filed first.

Is there anyway I can solve this mess? It seems at every corner I'm being screwed. I obviously know that this is my fault, but in fairness, there was absolutely no communication from CRO or Revenue telling me that these things were due. Can someone point me in the right direction as to how I can get back on the right track.

Ohh the Irony, see what it's like from the other side.

You need to get a good accountant to clean this up for you. Should be able to minimise your liability.

Mickiemcfist

drunkmonkey wrote: »

Ohh the Irony, see what it's like from the other side.

You need to get a good accountant to clean this up for you. Should be able to minimise your liability.

Not a particularly nice response.

@ OP - as above, get an accountant ASAP. Typically if you file a late return the fines will be waived as long as you're returning zero returns (i.e. no revenue/profit)

You need an accountant to close the company & the quicker you do it the better. It won't cost you as much as the fines may look like it's going to cost.

Tabb10

Thanks @Mickiemcfist. That reassurance has settled me down. Onto the accountant in the morning.

@drunkmonkey - nice burn, doesn't apply to my occupation but nice try anyways.

drunkmonkey

Tabb10 wrote: »

Thanks @Mickiemcfist. That reassurance has settled me down. Onto the accountant in the morning.

@drunkmonkey - nice burn, doesn't apply to my occupation but nice try anyways.

had to have a pop you made it to easy, the last time I called the revenue I nearly lost my mind:)

Accountant in the morning, the nearest one to your door. Nice to be able to run in and out.

Paddy001

You could consider liquidating the company, it may be more cost effective.

If you have no tax liability you cannot have a surcharge. Where are you getting this figure for a Revenue fine?

endacl

Paddy001 wrote: »

You could consider liquidating the company, it may be more cost effective.

If you have no tax liability you cannot have a surcharge. Where are you getting this figure for a Revenue fine?

Penalties due for non-compliance, I'd imagine. Filing an annual return is a legal obligation under the Companies Act, even if it just says 'zero in, zero out, zero payable'.

Cedrus

Tabb10 wrote: »

it was decided that this company wasn't going to work and we left it alone.
I went off travelling for the year of 2017.
There was no annual return filed for the company
I have not filed for "Income Tax" in the 2016 or 2017 calendar year.

The mind boggles! To paraphrase mad maggie thatcher, NO, NO, NO, NO.
What was your accountant doing? Did you ask anyone at all for advice/information?

Tabb10 wrote: »

there was absolutely no communication from CRO or Revenue telling me that these things were due.

You must have a different Revenue to the rest of us, I get a ridiculous demand every time I'm a bit late with a return, I think they do it to scare people into compliance.

In fairness what communication do you expect from the CRO, it's a registration office, once a year you send in a form saying the directors, secretary and shares haven't changed along with a €20 cheque.

I have been working through a Ltd. Co. for 30 years and never experienced problems like yours. I've come across some eejits in Revenue, in Ireland and the UK, but play the game fair and it usually works out fine. Seems to me you turned up with a beachball to play a county final.

I imagine that there have been a significant number of company failures through the recession and Revenue are targeting what they see as non-compliant companies. Get onto a good accountant and they will be able to sort it out. Also, you can appeal the fines but consider paying what is due as soon as possible to defray interest, your accountant will advise you better on this. I'm not sure if there is a need to backdate the CRO returns but you probably should get up to date at least which will cost €20 straightaway (if not €40).

jimmycrackcorm

Aren't the penalties due against the company? Same company that didn't have any funds to pay... So...?

Cedrus

jimmycrackcorm wrote: »

Aren't the penalties due against the company? Same company that didn't have any funds to pay... So...?

the
Directors still have responsibilities. If the OP has no interest in holding a directorship again, it probably wont hurt, but at the extreme end. a director could face criminal charges.
This is the big difference between the Bad Bankers the small businessmen, the former filled out the returns (speciously sometimes) and ticked the required boxes, the latter didn't always have time and got fuched over, OR, just couldn't be arsed and got caught.

dbran

Hi there

There is a lot of incorrect and misinfirmation being posted in this thread.

You will need to get in touch with an auditor to file a dormant set of audited accounts. You may indeed have a surcharge depending on your tax position.

You need to contact an accountant/auditor to sort out these issues properly.

Best regards

dbran