Process for closing a limited company

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MTJR
MTJR Registered Posts: 33 Regular contributor ⭐
in General member discussion
Hi,

I have a limited company client(one shareholder) who is now wanting to close their company.

The company doesn’t have any debts.
Has a small amount of cash in the bank.
One fixed asset - a laptop (AIA was claimed).

Their year end is 31st August and will cease trading in December.

This is something I have never done before and would like to know the step by step process for applying for voluntary strike off, submitting the final accounts, best way to transfer assets etc.

Can anyone help me with this please?

Thanks

Comments

  • J_ACO
    J_ACO Registered Posts: 9 New contributor 🐸
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    1 - Prepare accounts for August and submit a CT600 to HMRC - Pay any outstanding tax
    2 - Prepare accounts for 01/09 to the agreed close down date, submit final CT600 to HMRC and pay any tax due
    3 - Cancel any recurring payments to come out of the bank account and remove any funds from the business (Really stress this point, if there is money in the account when the company closes, it's costly to get it back)
    4 - Apply for strike off
    5 - Wait for company to close
    6 - Pay any tax due on dividends from any written off overdrawn DLA (if applicable)

    With regards to the laptop, as long as you sort out the balancing charge for the company tax, I'd transfer it to the shareholder and at the disposal value and account for it in the DLA. Unless it's a supercomputer, I doubt the capital gains tax section below will apply

    https://www.gov.uk/closing-a-limited-company (By the sounds of it, you want the solvent option at the top)
    https://www.gov.uk/strike-off-your-company-from-companies-register
    https://www.gov.uk/strike-off-your-company-from-companies-register/close-down-your-company
  • yemiroki888
    yemiroki888 Registered Posts: 4 New contributor 🐸
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    Old thread, but I went through this with my own company a while back. The laptop and any cash need dealing with before you file the DS01, otherwise HMRC treats them as a distribution and you get a tax bill you weren't expecting, that's the bit that caught me out.

    Director First is who I read up on when I was doing mine, they cover solvent closures and explain the qualification rules clearly.

    Main thing is the company can't have traded in the last three months and there can't be any loose ends, which is usually where people slip up.

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