Closing a business

[Newchodge]

Thinking ahead, a bit, I am considering closing my ltd company at the end of this tax year. At that time I anticipate having no debts, other than to me, and no assets. I will be providing a service up to and including 3 April, but the last invoices I will issue will be in December 2025. At what date, legally would I cease trading? December or 3 April?

 

[FreddyG]

At what date, legally would I cease trading? December or 3 April?

Yes. Definitely yes!

 

[Newchodge]

Yes. Definitely yes!

Thank you, that is very helpful.

 

[ash799]

Yes. Definitely yes!

is that 'Yes. Definitly yes'' for December or April?

 

[Scalloway]

As I understand it you cease trading when you stop invoicing for your services. Gathering in income due and disposing of assets is not trading.

 

[Newchodge]

As I understand it you cease trading when you stop invoicing for your services. Gathering in income due and disposing of assets is not trading.

Thanaks. I invoice in advance and then provide the services over the next 3 months. Would that make a difference?

 

[Scalloway]

I would say you are still trading in that case.

 

[WaveJumper]

Putting your feet up and retiring to warmer climate

 

[Newchodge]

Putting your feet up and retiring to warmer climate

I wish. But I will be 70 in February, and I think feet ptting up is worth serious consideration.

 

[Paul Norman]

Presumably, during the 3 months whilst you are providing services, there will be some costs, even if modest, which will go against any tax due upon business closure.

I would close the business on 3rd April, prepare the accounts to that date.

 

[Newchodge]

Presumably, during the 3 months whilst you are providing services, there will be some costs, even if modest, which will go against any tax due upon business closure.

I would close the business on 3rd April, prepare the accounts to that date.

Thanks, that makes sense.