Companies tend to have trouble producing full company tax returns at the end of their lives. They face further specific problems during any form of formal ‘winding up’ and the move to mandatory online filing brings these issues into sharp focus. For this reason, insolvent companies in any form of formal winding up or administration procedure are exempted from the requirement to file online. But that exemption doesn’t apply to companies moving towards informal striking off or during a solvent Members’ Voluntary Liquidation.
These cases present some practical difficulties. The new guidance sets out the issues and gives detailed guidance about the approach that HMRC will take in dealing with them. It can be read here.
