united-kingdom liability
Registered as a Ltd company but not traded yet; government threatening me for not filing taxes
<p>I registered myself as a Ltd company a year ago with the UK government to ready myself for working freelance as a web developer. Since then I have been involved in other projects (mostly voluntary, some conventionally paid employment, on which I paid taxes) and have not done any freelance/company work whatsoever.</p>

<p>Now I'm getting bills from the UK government for ever escalating amounts (they are saying £1300 last letter I got) for not filing taxes for a company that has not traded at all in any meaningful sense of the word (have paid out for some artworks and server rental, but never actually charged for any services).</p>

<p>What can I do about this? I don't have £13 spare cash, let alone £1300. Is there anything I can do to stop the government charging me money I do not have for tax returns it would have made no sense to file and the forms for which I don't understand anyway?</p>

<p>I already paid them £15 to register the company with Companies House and they have done literally nothing for me in return, so I really don't see how they can be wanting £1300 as a result of my not trading whatsoever.</p>

<p>The £1,300 demand is <em>to get you moving</em> to do something. You started a company. You are a company director. You get letters. You need to read the letters and do what you are asked to do. Go through the letters that you received, find a phone number, and call HMRC and talk to a living person there. </p>

<p>As long as they don't hear from you they assume and must assume that you are running a company that makes lots of money and doesn't pay its taxes. What else are they supposed to think? Call them, talk to them, and they will sort it out. </p>

<p>Here's an important thing: Whoever you talk to, they can be as helpful or as unhelpful as they want, so you must make them want to help you. Shouting and threatening will make them very unhelpful. Acting as the poor man who has no idea what he is doing will make them want to get you out of the system in the cheapest possible way. </p>

<p>BTW. You are saying they have done literally nothing for you in return of your £15 registration? They did a lot. They gave you an entry in the Company House database, protecting your name, and letting anyone find your business. They sent you reminder letters to do your taxes etc. and apparently more than one. They gave you the information that you need to open a business bank account, and so on. </p>

<p>Your company is required to lodge an annual tax return. If it doesn't, it will be fined. These charges are the fines. Talk to your accountant.</p>
