Ltd company - no longer required - options?

[FreelanceSoftwareDeveloper]

In August last year I formed a vat registered ltd company as the sole director. The 'company' has done a small amount of research activity with purchases of around £600 against a directors loan account and no sales. It has nothing which is classed as an asset.

I'm not sure what constitutes trading but the last purchase was in February and a VAT rebate from the end of April will be deposited soon.

I've decided not to continue with this as it was running alongside my sole trading business and I believe the sole trading business activity is lower risk and offers a reasonable return and also takes up all my time!

What are my options? I currently see it as:

1. Close the Ltd company before August, when can I do this based on the information above? do purchases and VAT rebate account entries count as trading?

Also, if I close this before the year end is there no requirement to submit accounts?

2. Switch my sole trading to the Ltd company and change the name, also probably de-register for VAT until I reach the threshold.

[FreelanceSoftwareDeveloper]

Is there anyone who can confirm my options for this?

I have done some more research, it would appear that a VAT refund is classed a 'revenue generating' therefore considered the same as trading? Do I need to make a dividend payment of around £15 to empty the bank account then wait another 3 months?

[Moneyman]

give the vat man a call and make a record of his name and what he said. These things can be a pig to put to sleep.

[Jaykay]

I would be surprised if a VAT refund was revenue generating, it is a repayment of tax paid over when purchasing something.

I would deregister from VAT, close all bank account and transfer all assets to your own name.

Sadly, you do have to prepare accounts - even if you had the business for a day!

The 3 months before applying to have the company struck off will start from when any purchases or sales take place, payment for things is not trading, moving money about to close accounts is not trading.

If you have VAT on accountancy fees to come, don't forget to claim it back...

[FreelanceSoftwareDeveloper]

Thanks for the comments.

I have applied to deregister for VAT and will empty the bank account all £30 of it as repayment of part of the Directors Loan.

Since I have to submit accounts anyway I might change the name and use the ltd company for part of my online trading for which there is a clear boundary from my other sole trading activity.