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

SaltpotSaltpot New MemberPosts: 11Registered
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

  • SaltpotSaltpot New Member Posts: 11Registered
    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?
  • mergenmergen Just Joined Posts: 99Registered
    I do not deal with tax at all. But it sounds like fraud/tax evasion. Not declaring income tax and etc.
    RyanMIP
  • SaltpotSaltpot New Member Posts: 11Registered
    Thanks for your reply mergen
    I've passed this up the line for someone better qualified to review.
    mergen
  • ashakantaxharmaashakantaxharma Guwahati, Assam, IndiaPosts: 9Registered
    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
  • SaltpotSaltpot New Member Posts: 11Registered
    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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