Minimum paperwork to keep company running Minimum paperwork to keep company running
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  1. #1

    Nervous Newbie


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    Default Minimum paperwork to keep company running

    Hi

    I was contracting a few months back, have stopped now and got the accountants to finish off my year-end accounts just now.

    I've got a couple of options now - voluntary liquidation, striking off etc. - but I'm tempted to just keep the company running as I might take up contracting again in a year or 2. Any downsides to this? And what minimum paperwork would I need to complete?

    Thanks!
    Num

  2. #2

    My post count is Majestic

    SueEllen's Avatar
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    Close the company down and if you need to start one again then do so.

    You clearly aren't prepared for contracting at the moment and keeping it open will just cause you hassle.
    "You’re just a bad memory who doesn’t know when to go away" JR

  3. #3

    Nervous Newbie


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    Anyone else? Someone who can answer my questions?

  4. #4

    Some things in Moderation

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    "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
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  5. #5

    Contractor Among Contractors

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    WSES

    Just close the company down. It isn't worth the mither keeping it open.
    Contracting: more of the money, less of the sh1t

  6. #6

    Contractor Among Contractors


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    If, and only if, you know what you're doing with filing accounts, dealing with tax, etc. without an accountant's help then you can keep your business running as a going concern earning nothing with very little difficulty. If you're not comfortable doing your own books then just shut it down as you may trip yourself up with something silly.

    I have a subsidiary company from my LLP for those idiot agencies that don't think that a LIMITED Liability Partnership is a limited company, it's been used for two contracts since I set it up and hasn't had a bean in it since 2011 but it's so easy to maintain that I keep it going for any short-notice bits of work for an idiot agency. I can do the annual accounts for it in under 30 minutes and the annual return is a doddle online. Admittedly I don't need to do VAT as I have Group VAT status meaning I do a cumulative return for both LLP and Ltd Co, even then a nil VAT return takes seconds every quarter.

    Another thing to consider is that if you're not likely to be contracting for a while and have simple tax affairs then not being a director or owner of a company may mean you can dispense with doing annual tax returns entirely. The fewer contacts you have with HMRC the better is usually a good way to live!

  7. #7

    Contractor Among Contractors


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    I tend to disagree about closing companies down as soon as contracts end or in periods back in permidom.

    My feeling, although its not a primary status indicator, is that it doesn't sit well with the "being in business on your own account" side of things viz IR35 et al. As its not a primary status indicator, it shouldn't effect a properly argued IR35 case, however it may act as an influence on whether an ill informed HMRC officer takes a case to start with. Set against that, closing down helps to ring fence IR35 liabilities if the position is weak.

    Some readers may be thinking "Well, she would say that wouldn't she" but accounting fees aren't a factor in this from my perspective, more well advised clients.

    Minimum paperwork?

    ~ simple accounts to Companies House - the dormant accounts template quoited above won't be usable if the company has previously traded.
    ~ annual return to Companies House
    ~ close VAT and PAYE down
    ~ tell HMRC CT section company is dormant, and thus no CT600s/iXbrl.

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