Closing Down a Limited Company

If you are choosing to close a company you have to apply to via Companies House for it to be voluntarily wound up and struck off the register. The company can only be struck off the Companies Registrar if:

-          Isn’t threatened with liquidation

-          Hasn’t changed names in the last 3 months

-          Has no existing debts

-          Hasn’t traded or sold any stock in the past 3 months

If your company doesn’t meet the above requirements then you will have to voluntarily liquidate the business.

However if your business does meet these requirements you be provided with a form DS01 form to fill in which should be completed and filed with Companies House.

Closing a company and informing HMRC

Before closing the company you will need to make sure the accounts are completed from the last yearly accounts filed to the last day of trading, these would then be submitted to HMRC along with a request to close the corporation tax account.

You will also need to inform HMRC that you wish to stop being an employer by submitting a final P35 Employers Annual Return, you will also need to ensure that you have fully paid PAYE and National Insurance Contributions.

If you are VAT registered you would have to inform HMRC that you are deregistering.

Due to corporation tax, VAT and payroll all being separate it is necessary to contact them individually.

If the company is dormant or never traded?

If the company has never traded or been dormant then once the directors have agreed the DS01 form should be submitted for Strike Off. Once its been advertised in the Gazette and the mandatory 3 month objection period has been waited out the company will be struck off the register and will cease to have legal existence.

Assuming that the company has no debts it will cost £10 to shut down the company.