You log in to Companies House and notice a new status next to your company name: “active proposal to strike off”. It is short, blunt and worrying. You may be wondering if this means you are about to lose the company, whether you will be left with unpaid debts, and what it says to your bank, suppliers or customers who can all see the same public record.
The good news is that this status does not mean everything is already lost. It does mean something is happening, and that you need to understand who started it and why. Once you know that, you can decide whether to let the strike-off go ahead or take steps to stop it, withdraw it or use other solutions that might protect the business and you.
⚠️ Received an active proposal to strike off?
Do not ignore the notice if your company has debts, HMRC arrears, a Bounce Back Loan, unpaid suppliers, employees, assets or ongoing trading activity.
Strike-off may still be simple if the company is debt-free and ready to close. If there are unresolved issues, you may need to stop the process, deal with objections or consider another route.
Not sure what to do next? Check your position before the strike-off progresses. Check your next step or call 0800 1804 935.
What does “active proposal to strike off” mean on Companies House?
When you see “active proposal to strike off” on Companies House, it means there is a live process in place to remove your company from the official register. In simple terms, someone has started the formal steps to close and dissolve the company.
If that process completes, the company will be struck off and will no longer exist as a legal entity. Before that happens, there is still time for directors, creditors, HMRC or other interested parties to act.
Active proposal to strike off: At a glance
- What it means: Companies House is in the process of removing the company from the register.
- How it starts: Either the directors applied to close the company via voluntary strike-off, or Companies House started action, often after missed filings.
- What happens next: A notice is published and there’s a window for objections before the company is struck off.
- When to act quickly: If the company has debts, Bounce Back Loans, HMRC issues, tax liabilities, or assets (including money in the bank), get advice before letting the strike-off complete.
Why would you see an active proposal to strike off?
There are two broad reasons this status appears. Either the directors have asked for the company to be struck off, or Companies House has started the process because it believes the company is no longer operating or meeting its filing duties.
It does not indicate which route applies, only that the process is underway. That is why the first step is to check whether the proposal was started voluntarily, or whether Companies House has begun action because something has been missed.
If the directors applied for strike-off
In many cases, the directors themselves have filed a strike-off application. This is often done using form DS01 or the online service to bring a dormant or no-longer-needed company to an orderly end.
The status shows that Companies House has accepted that application and has started the formal process, including placing a notice in The Gazette so that creditors and other parties know what is happening.
If Companies House started the process
In other situations, the status appears because Companies House has begun its own action. This usually follows missed accounts or confirmation statements, or letters that are not answered.
Here, there has been no voluntary choice to close the company. Instead, the registrar is using its power to remove a company that appears to have stopped functioning or fallen behind with its filing duties.
If the company still has debts, assets, HMRC issues or ongoing trading activity, this is rarely something to ignore.
What should you check first?
Before deciding whether to let the strike-off continue, stop it or withdraw it, check which of these applies.
| If this applies | What it usually means |
|---|---|
| The directors applied for strike-off | Check that there are no debts, assets, employees, creditor issues or recent trading activity before letting it continue. |
| Companies House started the process | Check whether accounts, confirmation statements or registered office issues need to be put right. |
| HMRC or another creditor may object | Get advice before the company is dissolved or before the issue escalates. |
| The company has debts | Strike-off may not be the right route. A formal insolvency or closure process may be needed. |
| The business is still trading | You may need to withdraw the strike-off and consider whether the business should continue, restructure or close properly. |
Check your next step
If you have seen an active proposal to strike off and you are not sure what to do, answer a few quick questions. We will help you understand whether the strike-off can continue, should be withdrawn, has been objected to, or needs another route because debts or creditor issues are involved.
Voluntary vs compulsory strike-off: Key differences
Not every strike-off is the same. The words on Companies House look similar, yet the reasons and risks can be very different. Understanding which type you are dealing with is the first step in making a safe decision.
| Type of strike-off | How it starts | What directors should check |
|---|---|---|
| Voluntary strike-off | The directors apply to close the company, usually because it is no longer needed. | Check that the company has no debts, no unresolved HMRC issues, no assets that still need to be dealt with and no recent trading activity. |
| Companies House strike-off | Companies House starts action, often because accounts, confirmation statements or other filing duties have been missed. | Check whether the company is still needed, whether filings should be brought up to date and whether there are debts, assets or trading activity to deal with. |
In both situations, the key point is the same: strike-off should not be allowed to continue if the company has unresolved debts, creditor issues, assets, employees or ongoing business activity.
If you are unsure which notice or status applies to your company, our guide to Gazette notices and strike-off statuses explains First Gazette Notices, active proposals, objections, final Gazette notices and dissolution issues.
When is it safe to let a strike-off proceed?
Not every company with an active proposal to strike off should be saved at all costs. Sometimes the process is exactly the right way to close a simple, clean company. In other cases it can be unsafe, or even unlawful, to let it continue.
A good way to think about it is to ask two questions:
- Is the company genuinely free of debt and disputes?
- Is there still a real business to protect?
If the company is genuinely no longer needed and has been wound down properly, strike-off may be the simplest route. It may be reasonable to let the process continue if:
- the company has stopped trading
- there are no outstanding debts
- HMRC matters have been dealt with
- employees have been paid and dismissed properly, where applicable
- company assets have been distributed or dealt with
- bank accounts, contracts and supplier arrangements have been closed or resolved
- there are no legal disputes, creditor threats or ongoing claims
- the directors understand what happens once the company is dissolved
If you are confident that all of these points have been dealt with, strike-off may continue without further action from you. If any of these points are uncertain, it is worth checking before the company is dissolved.
Not sure whether strike-off should continue?
If the company has debts, HMRC issues, assets, employees or creditor pressure, get advice before the strike-off progresses.
How creditors and HMRC can object to strike-off
Creditors and HMRC can object to a company being struck off if they believe there are unresolved debts, missing returns, unpaid taxes, ongoing claims or other matters that should be dealt with first.
An objection can stop or delay the strike-off process. The company may remain on the register while the issue is investigated or resolved.
HMRC may object where there are:
- unpaid VAT, PAYE, National Insurance or Corporation Tax liabilities
- missing tax returns
- open enquiries or unresolved correspondence
- penalties, interest or other unpaid amounts
- concerns that the company should not be dissolved yet
Other creditors may object if they are owed money or believe the company should not be closed until their claim has been dealt with.
If an objection is made, directors should not ignore it. The right response depends on the reason for the objection, whether the company can pay what it owes, and whether the business should continue, be restored to good standing or enter a formal insolvency process.
What to do if HMRC objects
If HMRC objects to strike-off, first identify the reason. The objection may relate to unpaid tax, missing returns, an open enquiry or unresolved correspondence.
Once you know the reason, the next step depends on the company’s position.
- If the issue is a missing return, it may need to be filed.
- If tax is owed and the company can pay, payment or a repayment arrangement may be needed.
- If the company cannot pay, directors should take insolvency advice before taking further action.
- If the business is still viable, rescue or restructuring options may need to be considered.
- If the company is no longer viable, Creditors’ Voluntary Liquidation may be more appropriate than strike-off.
The important point is not to assume that the objection will disappear. If HMRC is involved, take advice before the situation escalates.
What to do if a creditor objects
If a creditor objects, the company is usually kept on the register while the issue is dealt with. This gives the creditor time to pursue the debt or ask for the company to remain active.
Directors should check:
- who the creditor is
- how much is being claimed
- whether the debt is disputed
- whether the company can pay
- whether there are other creditors in a similar position
- whether the company is insolvent
If the company cannot pay its debts, strike-off may not be the correct route. A formal insolvency process may be needed to deal with creditors properly.
Has HMRC or a creditor objected?
Anderson Brookes can help you understand what the objection means, whether strike-off can continue, and what options are available if the company has debts.
How to stop, withdraw or suspend strike-off
If there is an active proposal to strike off, the right action depends on who started the process and why.
In some cases, the directors may need to withdraw a voluntary strike-off application. In others, the company may need to deal with overdue filings, respond to an objection, pay or dispute a debt, or consider a different closure route.
| Situation | Possible next step |
|---|---|
| The directors applied for strike-off but now need to stop it | Withdraw the strike-off application before the company is dissolved. |
| Companies House started strike-off because filings are overdue | Bring accounts, confirmation statements or other filings up to date where appropriate. |
| HMRC has objected | Find out whether the issue relates to unpaid tax, missing returns, penalties or an open enquiry. |
| A creditor has objected | Check the debt position, whether the company can pay and whether other creditors are also owed money. |
| The company has debts it cannot pay | Take insolvency advice before trying to continue with strike-off. |
| The business is still trading or could be rescued | Consider whether strike-off should be stopped while rescue or restructuring options are reviewed. |
Withdrawing a voluntary strike-off application
If the directors applied for strike-off but the company should not now be dissolved, the application can usually be withdrawn before dissolution takes place.
This may be needed if:
- the company has started trading again
- a debt or creditor claim has come to light
- HMRC has raised an issue
- the company still has assets
- the directors have decided to keep the company open
- strike-off was filed too early or by mistake
If the company has debts or creditor pressure, directors should take advice before deciding whether to withdraw the application, deal with the debt or use a formal insolvency process.
Stopping Companies House strike-off action
If Companies House started the strike-off process, the issue often relates to missed filings or signs that the company is no longer active.
Depending on the reason, the company may need to file overdue accounts, submit a confirmation statement, respond to Companies House correspondence or deal with registered office issues.
If the company is still needed, directors should act quickly. If the company is no longer needed but has debts or unresolved issues, strike-off may still not be the right route.
What if the company has already been struck off?
If the company has already been dissolved, the position is more complicated. In some cases, it may be possible to restore the company to the register, but this depends on the circumstances and why restoration is needed.
Restoration may be considered where assets remain in the company, creditors need to take action, HMRC issues need to be resolved or directors need to deal with matters that were not completed before dissolution.
If the company has already been struck off and you now need to deal with debts, assets, HMRC or creditor issues, take advice before taking further steps.
Need to stop or withdraw strike-off?
If you are not sure whether the strike-off should continue, Anderson Brookes can help you understand the next step before the company is dissolved.
What to do if strike-off isn’t the right option
Strike-off is only suitable where the company can be closed cleanly. If there are debts, creditor disputes, HMRC arrears, employees, assets or ongoing trading activity, another route may be more appropriate. The right option depends on whether the company can pay what it owes, whether the business is still viable and whether the directors want to continue trading.Bring filings up to date
If Companies House has started strike-off because filings are overdue, the company may be able to stop the process by bringing its records up to date.
This may be suitable where the business is still trading, has no serious debt issues and the directors want to keep the company open.
Deal with HMRC or creditor objections
If HMRC or another creditor has objected, the issue usually needs to be resolved before strike-off can continue.
This may involve filing missing returns, paying what is owed, agreeing a repayment plan, disputing the claim or considering whether the company is insolvent.
Consider company rescue or restructuring
If the business is still viable, directors may want to consider rescue or restructuring options before allowing the company to be struck off.
This may include informal creditor arrangements, HMRC Time to Pay discussions, a Company Voluntary Arrangement or administration, depending on the company’s position.
Consider Creditors’ Voluntary Liquidation
If the company cannot pay its debts and has no realistic route back to financial stability, strike-off is unlikely to be the right route.
In that situation, Creditors’ Voluntary Liquidation may be more appropriate. A licensed insolvency practitioner is appointed, the company is placed into liquidation and creditors are dealt with through the correct process.
This can be particularly important where there are unpaid taxes, supplier debts, Bounce Back Loan issues, unpaid employees or creditor pressure.
Why speak to Anderson Brookes?
An active proposal to strike off can mean different things depending on the company’s position. For one company, it may be a routine closure step. For another, it may be a warning sign that debts, HMRC issues or overdue filings need urgent attention.
Anderson Brookes can help you understand what the status means and what to do next. We can help you consider whether:
- strike-off can safely continue
- the application should be withdrawn
- Companies House action needs to be stopped
- HMRC or creditor objections need to be resolved
- the company should be kept open
- a formal insolvency route may be needed
Our advice is free and confidential. If you are worried about an active proposal to strike off, speak to us before the process moves further forward.
Get advice before the strike-off progresses
Answer a few quick questions and we will help you understand whether strike-off can continue, should be stopped, or needs another route.
What directors say about Anderson Brookes
FAQs
What does active proposal to strike off mean?
It means there is a live process in place to remove the company from the Companies House register. This may have been started by the directors through voluntary strike-off, or by Companies House because the company appears inactive or has missed filing duties.
Does active proposal to strike off mean the company is already closed?
No. The company has not yet been dissolved. There is still time for directors, creditors, HMRC or other interested parties to act before the company is struck off.
Can you stop an active proposal to strike off?
Yes, in many cases. The right step depends on who started the process and why. A voluntary strike-off application may need to be withdrawn, while Companies House action may require overdue filings or other issues to be put right.
What should I do if Companies House started strike-off action?
Check whether the company has overdue accounts, missing confirmation statements, registered office issues or other compliance problems. If the company is still needed, directors should act quickly to understand what needs to be corrected.
What should I do if the directors applied for strike-off?
Check that the company is genuinely ready to close. Before allowing strike-off to continue, make sure there are no debts, HMRC issues, unpaid suppliers, employees, assets, creditor disputes or recent trading activity.
Can HMRC object to a company strike-off?
Yes. HMRC can object if there are unpaid taxes, missing returns, open enquiries or unresolved correspondence. If HMRC objects, the strike-off process may be delayed or suspended while the issue is dealt with.
Can a creditor object to strike-off?
Yes. A creditor can object if the company owes money or if they believe the company should not be dissolved before their claim is dealt with. If a creditor objects, directors should check whether the company can pay and whether there are other creditors in a similar position.
Can a company with debts be struck off?
Strike-off is generally not suitable where a company has unresolved debts. If the company cannot pay what it owes, a formal insolvency process such as Creditors’ Voluntary Liquidation may be more appropriate.
Can an active proposal to strike off affect the company bank account?
It can cause concern for banks, lenders, suppliers and other parties because it suggests the company may be dissolved. If the company is still trading or needs to remain open, directors should act quickly to understand why the status has appeared.
What happens if the company is struck off?
Once struck off, the company no longer exists as a legal entity. It cannot trade, enter contracts or deal with assets in its own name. If there were unresolved assets, debts, disputes or HMRC issues, further action may be needed.
What if the company has already been dissolved?
If the company has already been dissolved, restoration may be possible in some circumstances. This can be relevant where assets remain, creditors need to take action, HMRC issues need to be resolved or directors need to deal with matters that were not completed before dissolution.
Should I let the strike-off continue?
It may be reasonable to let strike-off continue if the company is debt-free, no longer trading, has no unresolved HMRC or creditor issues, has dealt with its assets and has no employees or ongoing disputes. If any of these points are uncertain, get advice before the process continues.
Plan the safest way forward
Seeing “active proposal to strike off” next to your company name can feel like the beginning of the end. In reality, it is often a turning point. You still have choices, and you do not have to make them alone.
We offer calm, confidential conversations that focus on understanding what the Companies House status really means in your case, working out whether the business can be saved, or whether closure is the safer path, and protecting you as a director while treating creditors fairly.
Depending on your situation, that might involve:
withdrawing an unsafe strike-off and putting proper plans in place
exploring rescue tools such as CVAs, administration or refinancing
using a managed liquidation where the company cannot realistically continue
Everything is explained in plain English. You stay in control of the decisions, and we support you with the detail, the paperwork and the discussions with creditors, HMRC and Companies House.
If you are worried about an active proposal to strike off, or feel that your company might be heading in that direction, it is much easier to help when you get in touch early.
Call 0800 1804 935 for a free consultation, or email us at advice@andersonbrookes.co.uk. You can also contact us online.
