Moving back from LTD Compant to Sole Trader

[David Story]

Hi
How can I close ltd company and work as a sole trader? How much would cost to do it?

 

[Tier1Logistics]

Hi David,

To apply to strike off your limited company, you must send Companies House form they call a DS01, The form must be signed by a majority of the company’s directors.

You should deal with any of the assets of the company before applying, eg close any bank accounts and transfer any domain names.

It costs £10 to strike off a company. You can’t pay using a cheque from an account that belongs to the company you’re striking off.

If you have an accountant they can also help you do this.

This takes a total of 3 months.

Then you will need to fill out a self employment form and send it back to HRMC.

 

[David Griffiths]

You can’t pay using a cheque from an account that belongs to the company you’re striking off.

Why not?

 

[Tier1Logistics]

I don't know it's just a rule also it's on the website you can't pay using a cheque that belongs to the company.

 

[David Griffiths]

I don't know it's just a rule also it's on the website you can't pay using a cheque that belongs to the company.

I've never had a client where the company cheque has been refused. Can you provide a link to the website page concerned?

 

[Tier1Logistics]

Here is where it states you cannot:
https://www.gov.uk/strike-off-your-company-from-companies-register/apply-to-strike-off

Just above: It is an offence to make a dishonest application - you can face a fine and possible prosecution.

 

[UK Contractor Accountant]

The assumption is that Companies House expect you to deal with all the assets of the company including closing all bank accounts before sending in the DS01 with a £10 cheque.

 

[David Griffiths]

Thanks for the link, but as I said I've never known them refuse a cheque from the company. The form itself refers to the need to enclose the fee but makes no comment on the source. The .gov website is not famous for being completely accurate.

In most cases the company bank account is still open and active at the time that the application is lodged. The process takes about 3 1/2 months so there's plenty of time to close it before the actual dissolution.

Comments on the site about dishonest applications will refer to making false statements about the fact that the company hasn't traded for at least three months, or to not sending copies of the form to creditors and the like

 

[Ola1]

Hi All

I read the page and saw this quote

It costs £10 to strike off a company. You can’t pay using a cheque from an account that belongs to the company you’re striking off.

Relevant or not ?

 

[Jackie0802]

I understand this to mean that you cannot strike off a company that is still trading. If you are issuing cheques from the company then it is still trading. On that basis I think you have made the correct interpretation

 

[David Griffiths]

If you are issuing cheques from the company then it is still trading.

Not necessarily. If a company stops trading today it will continue to issue cheques to suppliers and collect money from customers for some time. That doesn't make its future bank transactions trading.

 

[UK Contractor Accountant]

It also says you can't apply if you are carrying on business as opposed to trading. So if you are issuing cheques you are 'carrying on business'?

 

[Karimbo]

hmrc is complicated and has contradictory information.


one example: We imported some low value items from USA without knowing about EORI. We called the vat helpline retrospectively and asked if we could reclaim VAT. The p[erson on the phone said no. I then contacted the carrier and asked if they could reproduce a c79 using our EORI - carrier said the admin will be more expensive than any VAT reclaimed and pointed out a an allowance in one of the VAT notices which allows me to reclaim input VAT without an EORI.

http://www.uk-customs-tariff.com/content/contentlist/volume/vol3_3.pdf
Page 30, section 3.4.11.4 VAT

The document is live as it is hosted on the HMRC website. (not an old archive document). The document can be found here: https://www.gov.uk/government/publications/integrated-tariff-of-the-united-kingdom-volume-3

 

[Bob]

FWIW I agree with @David Griffiths . Nearly always used a company cheque for strike off application when we applied for clients and can't see that gov.uk has correctly interpreted Companies Act 2006 S.1003 et seq

 

[MyAccountantOnline]

I understand this to mean that you cannot strike off a company that is still trading. If you are issuing cheques from the company then it is still trading. On that basis I think you have made the correct interpretation

I disagree a company will often issue cheques after it ceases trading.

I have always interpreted it to mean that the company bank account should be closed before striking-off.