Winding up of llp | Dissolving a limited company

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Going back to sole trader closing down a
limited company
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Its an all-too-common story. Times were good,
you had new clients coming out of your ears, more
work than you could handle and your bank account
was overflowing. You did the sensible thing and
formed a limited company to make the most of your
earnings clever you. But then disaster. Maybe
your biggest client went belly-up, or a string of
sexual misadventures with a coworkers spouse
finally caught up with you. Your income
plummets, and suddenly the extra paperwork and
Companies House filings just dont seem worth it
you pine for the days of sole tradership and
finally, after much deliberation, you decide to
Dissolving a limited company How do you do that,
exactly? Get everything squared away Although
youll go on conducting your business as a sole
trader your limited company, as a legal entity,
must have all its loose ends tidied away. This
means settling any outstanding bills, and
collecting any owed invoices, and making sure you
make provisions for any running costs that may be
incurred between now and when your company is
legally wound-up (for example, if youre paying
an accountant to finalize your last batch of
returns or employing some credit control services
to round up those late payers). The good news is
that these can be treated as legitimate business
expenses, and so can offset your final tax
bill. What else? Companies House You will need to
file form DS01 with Companies House in order to
strike off limited company/dissolving a limited
company your company. This can only be done
after the company has not been trading for 3
months. VAT If you are VAT Registered, you will
need to inform HMRC of your intention to
de-register by completing a VAT 7 form. Once this
form is received, HMRC will contact you with your
de- registration date. You must also complete a
final VAT Return that takes into account things
such as leftover stock or any equipment your
business owns. Corporation Tax You must inform
HMRC that your company is no longer trading so
they do not issue further reminders for
Corporation Tax.
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PAYE Scheme If you operate a PAYE Scheme HMRC
will also need to be told that it is no longer in
operation, and it will need to be closed
down. Capital Gains If youre operating a limited
company as a freelancer theres a good
probability your equipment (laptop etc.) is owned
by your company for tax reasons if you take
possession of company equipment personally when
your company is would up you may need to pay
Capital Gains tax on those items. But
wait Dissolving a limited company is, as you can
see from the above, a bit of a hassle. There are
other considerations too if you de-register
from the Flat Rate VAT scheme, you cannot
re-register for a year. If the good times return
and you decide to re-incorporate this could mean
youre out of pocket. If you think you might want
to trade through your limited company again soon,
you always have the option of putting it on
hold. Instead of informing HMRC that you intend
to close the limited company down you can make
the company dormant. You will still have to
file certain tax returns, but they will be nil
returns, meaning you just report a load of
zeroes to HMRC to show them youre not
trading. You can work as a sole trader outside
your limited company in the meantime, and return
to working through your limited company when it
makes financial sense (although bear in mind this
will make your self-assessment rather more
complicated). winding up of llp in the easiest
way. Venture Care can help you guide through the
procedure for the closure of your LLP quickly and
easily.
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