Ltd Company to sole trader?

Dottie Registered Posts: 99 Regular contributor ⭐
I met a new client yesterday who is on PAYE, but also has a limited company trading on Ebay.

His previous accountant prepared his accounts to 30th November 2008 and he signed them and paid his fee (but did not keep a copy for himself). He has now received a letter from Companies House threatening to start procedures to dissolve the company because the accounts have not been filed and he has a £300 fine. His accountant will not answer his calls.

He rang CH and they have suggested that he dissolves the company himself, pays the £10 fee and then he will not incur the fine.

However, he is still trading on Ebay and wants all trade since 1st December 2008 to be shown as self-employment (he is registered as self-employed and has been paying Class 2 NIC) but can he do this?




  • burg
    burg Registered, Moderator Posts: 1,441 mod
    Short answer no. If he has raised invoices as ABC Ltd then he can't just suddenly turn around and go 'oh that wasn't really that was me as a s/t'.

    Is it really worth dissolving the company over the £300 fine?

    He of course could start from now as a s/t or a new ltd co. You need to really consider if it is worth dissolving over £300. It may be more sensible to submit the accounts pay the fine and carry on. You can then look into the possibility of recovering the fine from the previous accountant.

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