The 10 steps to closing down a Limited Company

By Forbes Burton

Small Business Rescue And Recovery

Introduction

When you’re deciding to close down a limited company, there are lots of steps that should be taken and the process isn’t as straight forward as it was when setting up a new company.  

In the following slides we’ve outlined the steps that need to be taken:

1

You’ll need to work out a date to cease and let everyone know (anyone with an interest in the company - creditors etc).

You’ll also need to tell all the shareholders and agree a date to close.

2

If the date you decide is different to your normal accounting date you’ll need to fill out a form from Companies House called AA01.

You need to sign it and send it to Companies house (you need to send a copy to HMRC too).

3 Once the agreed closure date has passed send a

letter to HMRC to say you’ve stopped trading and there is no further taxable income, also let them know that final accounts will be sent in due course.

4 If your company employs people or it’s registered

with CIS scheme you’ll need to let HMRC know that both schemes should be closed as they are no longer needed.

5 If your company is registered for VAT you’ll need to

de-register by filling out VAT form 7 and then prepare a final VAT return.

6 If you are planning to trade afterwards as a sole trader you’ll need to register with HMRC as such.

7 If you aren’t planning on being a sole trader or

partnership and are going back to employment/retiring you need to tell HMRC that no further tax returns will be needed after your final one has been done.

8 Get your final accounts prepared with your

Corporation tax return and submit them to HMRC and Companies House.

9 Wait for three months after the closing date and apply

for your company to be struck off by completing form DS01.

10 Companies House will publish these details in the

London Gazette and then (if there are no objections) will dissolve your company after three months.

Summary

If this sounds like a lot of work, or you are unsure if you can do it all the right way, then we can do it all for you for as little as £250.

Get a FREE quote to close your company today by calling 01472 254914 or start online here.