Ltd Company to sole trader?

Dottie

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?

Help!

Dottie

burg

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.