Could anyone read over this and tell me if its legal? If you have a registered company in the UK. That said company needs to pay their taxes to the UK? The business licence is incorrect. They are selling art and other meditating services but are using a management services number. They live in Bulgaria but have a Polish bank account and getting paid in Polish currency. Would it just be to send all relevant information to HMRC? Any help would be greatly appreciated because a friend has been scammed big time by all accounts.
As a UK company they will need to file UK accounts and a UK company tax return for each UK company they have set up. They should be keeping proper accounting records of revenues, costs, assets and liabilities. Assuming they are transacting in lots of different currencies, their accounts and tax return might be quite complicated with exchange gains and losses when they transalate everything into £ (assuming they prepare their accounts in £ - they don't have to if it's not their functional currency (ie the currency in which most company transactions take place)). Not sure what you mean by "just send all relevant info to HMRC" ? They need to send annual accounts to Companies House and a tax return for each Uk trading company to HMRC. They may need to employ an accountant or use a 3rd party to prepare these various returns. Not sure if it really matters if the company is registered under the wrong business category code. NB A company's articles of association and memorandum of association describe what the company can and can't do based on how it was set up. If they have changed activity since they set it up they might just need to check the company is allowed to carry on the business it is now doing per the rules it was set up under. Often the business description is pretty wide allowing a company to diversify its' operations. Not sure if that helps ?
No that's a big help thanks.. Your first sentence cleared it up really. They're by all accounts not paying UK taxes or any taxes in fact. I thought you could send in details to the HMRC so they could investigate any irregularities and so forth. That I will need to check up on though. Appreciate your response and it was extremely helpful. Thank you.
How long has the company been operating ? Normally if they have failed to file accounts or tax returns they would be getting countless reminders/threats posted to the Company's registered office ? If it's relatively new it may be that accounts and tax returns aren't due yet ? There are fines for late filing but these are usually a few hundred £s but a company can be struck off (cease to exist) if they fail to file after numerous warnings. They need to speak to a High St firm of UK accountants.
Not 100% sure yet. Only have limited information. But the ball has started rolling in Poland. But it's looking like any returns have been falsified heavily.
The sad thing is that forming a Limited Company in the UK costs peanuts and although there are a lot of rules and compliance that you are supposed to go through, if you are a fly-by-night scammer, you just ignore them with little chance of serious consequence.
