Unfortunately this is an aspect that’s going to be inevitable in certain circumstances and companies will need to be dissolved and taken off the register. Just as we’re happy and committed to provide you with the excellent advice with relation to registering companies; we want to make sure that our audience are comfortable if this situation then becomes relevant. It is likely of course that there will be stress attached to this, so we’re also keen to simplify this process as much as we can.
We do get asked if someone needs to notify both HM Revenue and Customs and Companies House when closing down their limited company, and the answer is yes. You should contact Companies House and request to have the company voluntarily wound up and struck off the register. Around this time you should also notify HM Revenue and Customs that you company has effectively stopped trading, so the company record can be updated for tax purposes.
Who else do you need to inform? So once you have filled in an application to strike off your limited company (DS01 form) within 7 days you should contact all the individuals who could be affected, along with providing them a copy of the form. The usual examples of who to contact are:
· Any other Directors
· Managers or trustees of any employee pension fund
From Companies House perspective, if they are satisfied with the application than the information will then be updated on the company register. If no objections are then made then it will be struck off after 3 months of the date of the submission.
You should also ensure that any business assets that are outstanding are shared back amongst the existing shareholders before the company is dissolved and taken off the register.
Please also do note that during your final year of trading if your company were to incur a loss; you may well be able to offset the tax against profits from previous years. This is also known as terminal loss relief. This can then be claimed on your company’s final tax return.
Finally for your information; you are obliged to keep documents associated to the business (typical examples are invoices, bank statements and receipts.)
Here at Set up a Company, we are keen to promote and reiterate this information as we understand the understandable stress and importance of following the correct procedure here.
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This post was written by Chris Beck