Sequence of events when closing a Ltd Co.

[taxquestion]

Hello all,

After a while of leaving the UK Ltd Co in place after moving to Europe, I am looking at closing this now since it isn't in use (and likely to be in use any time soon).

Would anyone know what the correct sequence of things to do is?
HMRC seems to mention to notify them in broad terms, for CT, PAYE and VAT. My co is not VAT registered, has no employees and doesn't owe any CT due to nill activity recently (well, nill recently, next to nill and no profit since the last set of accounts).

What should I do - prepare the final accounts (and CT600?) first, submit them, and then apply for it to be struck off - or apply for it to be struck off and then wait for requests for any remaining reportings needed? CH website is also a bit imprecise on this and seems to imply I should apply for it to be struck off and then deal with the rest (they say they won't chase for compliance afterwards - but what does that mean)?

All help much appreciated!

[northernladuk]

Something in this lot may help. Plenty of discussions about how to do it and how to do it most tax efficiently as well...

closing limited site:forums.contractoruk.com/accounting-legal - Google Search

I take it you don't have an accountant if you have not been using the company?

[VectraMan]

I had the same situation with a small company last year. I first made sure CT was up to date (it helped that I did this just after the year end), and then sent the application to close form to CH. I also sent a copy of said form to HMRC and took one round to the bank when I closed the account.

It was all quite painless in the end.

Don't do what I remember someone on here doing which was closing the company whilst leaving thousands of pounds in the company back account.

[Andrew at Boox]

Don't do what I remember someone on here doing which was closing the company whilst leaving thousands of pounds in the company back account.

Spot on. Companies House notifies the bank that the company is being dissolved and any funds remaining in the business account goes to HM Treasury (the Queen). Getting it back is difficult and costly as the company has to be 're-instated'.

Broadly speaking:

1. pay any last outstanding PAYE/NI, corporation tax and VAT (not necessary in your case).
2. send a letter to the PAYE and CT tax office notifying them of closure so they can close the schemes.
3. If your company was VAT registered, you'd need to de-register for VAT and submit a final VAT return.
4. clear the business bank account (divdends or capital gains if you've done tax planning with your accountant)
5. send the form DS01 to Companies House with a cheque for £10

Job done.

[Jessica@WhiteFieldTax]

Spot on. Companies House notifies the bank that the company is being dissolved and any funds remaining in the business account goes to HM Treasury (the Queen). Getting it back is difficult and costly as the company has to be 're-instated'.

Broadly speaking:

1. pay any last outstanding PAYE/NI, corporation tax and VAT (not necessary in your case).
2. send a letter to the PAYE and CT tax office notifying them of closure so they can close the schemes.
3. If your company was VAT registered, you'd need to de-register for VAT and submit a final VAT return.
4. clear the business bank account (divdends or capital gains if you've done tax planning with your accountant)
5. send the form DS01 to Companies House with a cheque for £10

Job done.

Andrews list is spot on. Re 4 there would need to be a Section 1030A application (the new enactment of ESC C16) and you can do that if you have reserves of less than 25k. Its only necessary if (a) you anticipate being in Higher Rate Tax or (b) you would get host country complications on a dividend. If the amounts in the company are material you may want to chat to a accountant in your host country in case there is a liability there.