Closing Down Ltd Company Query

[Jack Pursey]

Hi,

I am hoping someone can help me please! Due to a combination of ill health and a business idea not proving feasible, I am hoping to close down my limited company.

The business is loss making and therefore no corporation tax is due. The only creditor left is myself - via a Director's Loan, which I know I won't get back. As I am the only creditor, does this mean I can just apply for a strike off via form DS01 without having to go through liquidation?

And is the order to first contact HMRC and inform them of the closure, then to submit the accounts, and finally DS01? And is any change in accounting date required?

I realise this is a lot, but hopefully someone can help me. Thanks very much in advance to anyone who can.

 

[Robbie Grieshaber]

Sorry to hear your business hasn't worked out!

You should deal with HMRC first in case they have any tax queries before closing the business (although it sounds like they won't).

If you are the only creditor and have no other debts or people that you owe money to then you can apply to strike the business of the register. That is also assuming that the company hasn’t traded or sold off any stock in the last three months.

Otherwise, you'll need to complete voluntary liquidation.

There is a handy guide on Gov.uk under 'Running a Limited Company'

There is no change of accounting date required. You should however speak to an accountant about this as you could be eligible for a VAT rebate (if registered).

 

[Lisa Thomas]

Sounds like dissolution is the best solution for you. See here for details:

https://www.gov.uk/government/publications/company-strike-off-dissolution-and-restoration

Alternatively if you stop filing returns and accs etc C House will strike the Company off.

 

[Jack Pursey]

Thank you very much for your help and clarification!

 

[Mike Hutchinson]

The procedure should be: ensure no trading for three months, close bank account, write off loan, ensure no creditors outstanding, extract any assets, get HMRC clearance for strike off, submit strike off application. There is no need to prepare and file accounts at Companies House. I would not recommend leaving the company to be struck off by Companies House. This can reflect negatively on you in future searches, due diligence by banks, credit reference agencies etc. and for the sake of a £10 fee really isn't worth it. HMRC may also block the strike off if you don't inform them.