Cheapest way to close down Ltd.

**Scruff** · 8 April 2014, 10:35

Originally posted by nfoote View Post

I'm trying to close down my Ltd completely as I'm now (or at least for the next few years) out of the contractor game.

Clearsky is quoting me £495 + VAT to close down the company and do all the final accounts etc, which seems excessive to me, particularly given they've just done the end of year accounts and the business hasn't been trading since then so everything should just be 0's?!

Anyway, does anyone know if any cheaper options than that? Any services that would take care of everything for me but charge a bit less?

On the other hand I know there is some option of going dormant if there's potential of starting back up in a few years. But again Clearsky has quoted £50/month to run dormant, which also seems stupid amount for doing next to nothing.

Any ideas?

You can always DIY, because you are between a rock and a hard place, right now? A Professional Accountant needs to be paid for their professional services.

If its completely "dormant", then you can DIY dormant accounts / Annual Return at Companies House, file your own Company Tax return and it will cost you nowt (but for the cost of the Annual Return).

**Clare@InTouch** · 8 April 2014, 10:36

Is that a liquidation? If so it's cheap! If not then it still not horrendous as there's quite a bit involved in the closure process, and it takes time to ensure it's all done correctly.

You could leave and find another accountant that offers an annual service if you want to keep the company open, but they will still charge to prepare accounts each year. It should be cheaper than £600 though (£50pcm as quoted) provided there are no transactions and you're not registered for VAT or PAYE. But then after two years you'll have paid more in accountancy costs than it would have cost to pay the closure fee.

You could do non-trading accounts yourself, and file your own tax return too. If there's not a lot to include then it could be quite simple, it just takes a bit of research to ensure you're up to date on taxes etc.

Or call another firm. Not many will be willing to take over just for a closure as they tend to be a fair amount of work for quite a small (one off) fee. You could probably find it cheaper by a couple hundred, at the absolute most.

**nfoote** · 8 April 2014, 10:40

Yeah I fully understand the accountants need to be paid and they need to pay for the their degrees but £500+VAT just sounds like a lot.

I might try a few other places, as you say. Even its 100-200 cheaper I think that would be more tolerable. There's only about £1000 extractable left in the business anyway!

**tractor** · 8 April 2014, 10:49

...

It's all about your perception. If there's only 1k in it then write it off in your mind, tell them to go ahead and close it, make sure they do it properly.

At the end of it you will have a chq for a few hundred that you weren't expecting.

Job done.

People always forget there is an exit cost to a commercial enterprise and usually forget to factor it in. If you made a shedload during the lifetime of the company, you are quids in, if you didn't then let it be a lesson to you :P

If you really haven't traded and there are no fixed asset complications, read up on your responsibilities and DIY. I and many others have done and it's no big deal.

**VectraMan** · 8 April 2014, 10:52

It costs £10.

Assuming the accounts are up to date and the CT is paid for every year you've traded in, you need to:

1. Pay a final dividend.
2. Fill out form DS01, and send a copy to HMRC, a copy to your bank with instructions to close your account, and the original to Companies House with your fee.
3. Wait a couple of months for the notification.

If you want to make the company dormant, then learn to do it yourself because paying an accountant would be pretty silly. But unless you really like the name you may as well not bother and start a new company if you ever return to contracting.

**nfoote** · 8 April 2014, 10:58

Originally posted by VectraMan View Post

1. Pay a final dividend.
2. Fill out form DS01, and send a copy to HMRC, a copy to your bank with instructions to close your account, and the original to Companies House with your fee.
3. Wait a couple of months for the notification.

What about this "advertise in the London Gazette for 3 months" thing the accountant is talking about? Is that required?

**Clare@InTouch** · 8 April 2014, 11:03

Originally posted by nfoote View Post

What about this "advertise in the London Gazette for 3 months" thing the accountant is talking about? Is that required?

That happens as a result of the DS01 being submitted, it's not something you have to do.

I'd advise caution in ensuring everything is properly closed down before you proceed, as it can delay the process. Also check that the final distribution is done correctly in the accounts - capital rather than dividend.

**VectraMan** · 8 April 2014, 11:07

Originally posted by nfoote View Post

What about this "advertise in the London Gazette for 3 months" thing the accountant is talking about? Is that required?

Companies House do that. It's all bollocks of course; as if anybody reads the London Gazette to see who's closing their contracting company.

The other things I didn't mention are that you'll need to deregister from PAYE and VAT, if you haven't done so already.

https://www.gov.uk/strike-off-your-c...ister/overview

**northernladuk** · 8 April 2014, 11:38

Did you take up the equity offer from your client from last year? That could complicate matters.

Didn't someone mention that there is a higher likely hood of a tax inspection around the time of closing a company or shortly after as there is only a certain amount of time for them to do it? Might just be worth paying a little bit of dosh to have it done properly so you can sleep at night?

Cheapest way to close down Ltd.