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Acceptable time for preparing final accounts?
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Mine took around 3 months.
Basic one man PSC nothing interesting.
I’m sure it could be done in a matter of days if they wanted to.Comment
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Originally posted by Syd View PostComment
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I stopped trading on March 6th. My accountant didn't start the creating accounts until 6 months into my trading year, July 1st. This was because companies house need at least 6 month's worth of accounts. My accountant then handed the MVL process to the liquidator on September 8th. I'm due my first wad mid-October.Comment
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Originally posted by heyya99 View PostI stopped trading on March 6th. My accountant didn't start the creating accounts until 6 months into my trading year, July 1st. This was because companies house need at least 6 month's worth of accounts. My accountant then handed the MVL process to the liquidator on September 8th. I'm due my first wad mid-October.
If cessation accounts/CT returns are prepared pre-liquidation that does reduce the work for (and the fees of) the liquidator. (It doesn't have to be that way though. The liquidator can liaise with the accountants to file the returns etc.) heyya99's experience may be very typical but I don't think it's necessary to wait 6 months after ceasing trading before putting a company into liquidation (and 7 months before receiving any distribution).
Incidentally a period of 1 month between putting a company into liquidation and receiving a first dividend is quite normal. Once a liquidator is appointed s/he will advertise for claims against the company and creditors are given 3/4 weeks to submit their claims. Hence, once the 3/4 weeks has expired the liquidator can be in a more comfortable position to be able to distribute funds knowing that any creditors have had an opportunity to submit claims. [NB. There is scope to speed up this distribution process too but it is non-standard.]Comment
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Originally posted by Jeremy @ Silva Insolvency View PostAlthough accounts need to be prepared to support final CT returns, once a company is in MVL statutory accounts don't need to be filed at Companies House. I wouldn't therefore expect Co House rules on accounting periods to be holding up putting a company into liquidation.
If cessation accounts/CT returns are prepared pre-liquidation that does reduce the work for (and the fees of) the liquidator. (It doesn't have to be that way though. The liquidator can liaise with the accountants to file the returns etc.) heyya99's experience may be very typical but I don't think it's necessary to wait 6 months after ceasing trading before putting a company into liquidation (and 7 months before receiving any distribution).
Incidentally a period of 1 month between putting a company into liquidation and receiving a first dividend is quite normal. Once a liquidator is appointed s/he will advertise for claims against the company and creditors are given 3/4 weeks to submit their claims. Hence, once the 3/4 weeks has expired the liquidator can be in a more comfortable position to be able to distribute funds knowing that any creditors have had an opportunity to submit claims. [NB. There is scope to speed up this distribution process too but it is non-standard.]Last edited by heyya99; 11 September 2020, 13:15.Comment
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Just to clarify, my business year end is December. My accountant was able to move the end date forward 6 months, meaning end of June. Are you saying this was unnecessary? My accountant was adamant this needed to be done.
I can't say the last 6 months accounts weren't necessary though. There could have been another reason why it was desirable. [It could be something to do with meeting or evidencing eligibility for Business Asset Disposal Relief (Entrepreneur's Relief). There is a minimum trading period of 2 years to qualify which sometimes means people need to keep trading a bit longer. I'm not aware that there are any direct requirements relating to Co House filings.]Comment
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