Closing LTD Company

[asonda]

Hi There,

If a company has a Retained Loss, can this company be shut down without hassle.

Plus is there an 'Easy' quick way to close a LTD Company down?

All Overdrafts, contracts etc are paid off and it is a small business exempt from Audit.

Just trying to find out for a friend who doesn't use UKBF.

Kindest Regards

Jamie

 

[Scalloway]

The easiest way is to apply to Companies House for striking off. If it does not owe any money this should be straightforward.

http://www.companieshouse.gov.uk/about/gbhtml/gp4.shtml#ch1

 

[Rohit]

Hi Jamie

Use DS01 striking off application (usually a fee with this application form). Can only be used once 3 months have passed and no transactions/trading has happened in these 3 months. Companies house will strike the company off its register.

Must must ensure that all creditors including HMRC are paid off and final accounts submitted to HMRC. They must be informed that company has stopped trading and will not have any further taxable income. Well in your case there is a retained loss so there wont be any income and no tax to pay so will be a lot easier.

Hope this helps

 

[Spongebob]

Must must ensure that all creditors including HMRC are paid off and final accounts submitted to HMRC.

Not true.

It is perfectly permissable to apply for strike-off using form DS01 when the company has debts. The form specifically says that all creditors (and other interested parties) must be notified of the application. Creditors have the right to object to the striking off, but the best advice is simply to try again every three months. Eventually either it will go through or a creditor will initiate winding up proceedings.

Equally, there is no necessity in practice to submit final accounts to HMRC. The company may get penalties applied, but if it has no assets and is no longer trading these are uncollectable. Directors are not personally liable for any penalties.

After all, if the company is insolvent and has no assets, who is going to pay an accountant to do the accounts?

 

[Rohit]

Equally, there is no necessity in practice to submit final accounts to HMRC. The company may get penalties applied, but if it has no assets and is no longer trading these are uncollectable. Directors are not personally liable for any penalties.

Agreed although IMO it would be better to avoid hassle with HMRC & keep client happy. Any correspondence from the revenue may cause unnecessary anxiety for both the accountant & his/her client...

Even a simple letter to HMRC would do the trick

 

[asonda]

Hi All,

Just want to say a big Thank you to you all, very much appreciated.

Regards

Jamie