Closing a LTD Company

[Lewis Morris]

Last year me and a friend opened a limited company. Hoping for the best, but it hasn't worked out.

We want to close the company down - we haven't taken any wage or dividends thus far and have only had about 10 purchases and 5 sales.

Sales are under £1500

1) Do you think I can handle the accounts myself or will I still need an accountant?
2) Is it easy to close the company?
3) We have no outstanding bills to pay, do I close as solvent?
3) How should we take money out of the account, can we take a dividend prior to closing the account or after?
4) If so how much should we leave for corporation tax etc 19%? Is that on our profits? I am sure it is.

Any advice would be amazing.

 

[Scalloway]

1. From the questions you are asking I would suggest that you would be much better off toget an accountant to deal with it.

2. Yes it is easy to close a company down if it has no creditors. The directors sign a simple form and pay a fee of a few pounds.

3. Yes

4. (and your second 3) You should do the following:

• Prepare accounts and submit them to Companies House
• Send a Corporation Tax return to HMRC and pay the tax due
• Have a directors' meeting to resolve to pay any balance of cash as a dividend
• At the same meeting sign the form to have the company dissolved
• Pay out the balance in the bank account to the shareholders.
• Close the bank account

 

[Lewis Morris]

1. From the questions you are asking I would suggest that you would be much better off toget an accountant to deal with it.

2. Yes it is easy to close a company down if it has no creditors. The directors sign a simple form and pay a fee of a few pounds.

3. Yes

4. (and your second 3) You should do the following:

• Prepare accounts and submit them to Companies House
• Send a Corporation Tax return to HMRC and pay the tax due
• Have a directors' meeting to resolve to pay any balance of cash as a dividend
• At the same meeting sign the form to have the company dissolved
• Pay out the balance in the bank account to the shareholders.
• Close the bank account

thanks

 

[GraemeL]

and make a VAT return if you registered, then advise VATman of closure.

 

[ChrisCallaghan]

@Lewis Morris

Assuming there are no creditors (debts) then closing the company is the easy part. You will simply need make an application to strike off (also called dissolve) your company. See below for guidance:

Strike off your limited company from the Companies Register

How to close down your limited company by getting it struck off the Companies Register

www.gov.uk

 

[Bigpete]

Hi, I'm in a similar situation to Lewis and my company has done very little trade, like £400 in sales and running at a loss to me.

If I complete form to dissolve company is that the end of it for me. I have zero creditors. I have also not filed any accounts but will this get me a fine or disqualification?

Many thanks
Bigpete

 

[Scalloway]

If I complete form to dissolve company is that the end of it for me.

Yes

I have also not filed any accounts but will this get me a fine or disqualification?

No

 

[CJS88]

Make sure everything else is done and the bank account closed before you file the form at Companies House