Why would you set up a Private Limited Company every year?

Saltpot
Saltpot New MemberRegistered Posts: 11 Regular contributor ⭐ 😼 ⭐
I'm doing some research and I have found an individual setting up a Private Limited Company every year for the last 3 years and then dissolving them before any returns are due. This seems to be a strange situation - could anyone give me a clue as to what is going on. Any help would be much appreciated.
Thank you in anticipation

Comments

  • Saltpot
    Saltpot New Member Registered Posts: 11 Regular contributor ⭐ 😼 ⭐
    This has got to be some kind of tax evasion. Not quite sure how it works. Does anyone know how this works as the dissolved companies don't have any income/expenditure listed. Could this be a way of hiding trading income? Please can anyone give me the 'crack' on this?
  • mergen
    mergen Just Joined Registered Posts: 112 New contributor 🐸
    I do not deal with tax at all. But it sounds like fraud/tax evasion. Not declaring income tax and etc.
    RyanMIP
  • Saltpot
    Saltpot New Member Registered Posts: 11 Regular contributor ⭐ 😼 ⭐
    Thanks for your reply mergen
    I've passed this up the line for someone better qualified to review.
    mergen
  • ashakantaxharma
    ashakantaxharma Guwahati, Assam, IndiaRegistered Posts: 9
    One needs to study the type of transaction being carried out in such organisation and participating organisations to find out whats going on ?
    Asha Kanta Sharma
    +91-98642-72826
    Guwahati, Assam, India
  • Saltpot
    Saltpot New Member Registered Posts: 11 Regular contributor ⭐ 😼 ⭐
    Good morning Asha
    Thank you for your response. Unfortunately Companies House does not allow access to any filed reports for dissolved companies. The companies all trade in the same service and are dissolved prior to having to file reports, although the reports, I assume must be filed before the deadline. So no transactions are available to see. Its almost as though the company wants to trade in secret, but wants limited liability. It might also become invisible to HMRC, as I doubt HMRC would be able to check on all dissolved companies and their owners. Also the companies are following a pattern, which would indicate increasing turnover as they are now being dissolved in a shorter time scale. I find this interesting have you any further comments?
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