Closure of Ltd Company

zephyr

I have a ltd company that have ceased trading (they have not sold the company). Usual year end is 31 October 2010, but they have ceased trading 31 July 2010.

Do I do accounts 1.11.09 - 31.7.10 with balance sheet to 31.7.10?

Stock and assets were sold September 2010, and all creditors (including paye/vat have been paid) do I need to do another set of accounts to 31 October to show winding up period?

I have read HMRC website re closure of company, and it seems to say this?

Have I miss understood? What ye date does accounts go to Companies House?

This is the first Company that I have had close, so advice would be grateful.

Does anyone have a check list for actions to take?

Monsoon

If all their affairs have been dealt with in the 12 months, I would just prepare 12 months as usual. The closing balance sheet would end up being zeros, or just share capital.

I have prepared accounts on this basis before and it has been accepted.

Could you link the article that suggests two periods?

Closing a company is easy if all the debts have been paid and there are no reserves. Once you have finalised accounts and CT600 for HMRC, as long as no-one is owed money and the company hasn't changed its name, disposed of assets or traded in the last 3 months, you send your £10 fee with form DS01 to Co House and it gets dissolved.

deanshepherd

Cessation of trade is an activating event for corporation tax accounting periods so even if you prepared accounts for the year to 31st October you would still have to prepare a tax return to 31st July.

Monsoon

Thanks Dean, good to know.

zephyr

Thank you both for your advice. I have already prepared the accounts to the 31 October ( the clients have just informed me that they are off to Florida on Sunday for 6 months!, so I need to have everything ready for them to sign this week!)

If I do a CT tax form for the period ending 31 July, can I attached the Year end accounts for 31st October 2010 or do the accounts need to match the period on the tax form?

As the assets were sold in September 2010 there is a balancing charge, so I must need to do another tax return showing the movements to 31st October?

deanshepherd

If you have already prepared accounts to 31st October then I would suggest (strictly off the record of course!) that you document 31st October as the official cessation of trade.

No point making things more complicated than they need to be.

Ordinarily I would have have prepared a short period to 31st July and left the balance sheet position as it was at that time.