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Expert Lu
Expert Lu, Business Consultant
Category: Tax
Satisfied Customers: 235
Experience:  ACCA Diploma
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I have some quick questions regarding closing my limited

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Hello, I have some quick questions regarding closing my limited company. I'd like a second opinion since I am not too happy with my current accountants. thanks
JA: Have you talked to a tax professional about this?
Customer: I'd like a second opinion
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: no, thank you
Customer: replied 21 days ago.
Hello, I am closing off my limited company and carrying on my business as a sole trader. I am the only director of the company, and it does not have any employees - it's a music agency and I book musicians who are freelancers.My questions are:1. I notice I must inform all interested parties that the company is being struck off. Who are these interested parties?2. My current accountants have submitted an application to get the company dissolved before submitting the Corporate Tax return. I haven't paid any Corporation Tax yet or taken any Capital Gains - shouldn't this be done first?3. My accountants did a poor job advising me when I opened the ltd company. Therefore, I carried on using my sole trader business bank account instead of opening a company bank account. Am I correct to think I won't need to close the sole trader business bank account and I can carry on using it as a sole trader?4. Should I notify HMRC that the company has been dissolved or by submitting the Corporation Tax return and closing accounts that won't be necessary? The company was open in March 2020 and then the accounts were closed before the year ended, on 31st Jan 2021.Many thanks, ***** ***** basically looking for a second opinion as my current accountants have made some mistakes in the past. I am very new to all accountancy terms and I would greatly appreciate detailed explanations so I can understand quickly.Many thanks again.
Ines

Hello

I am an expert  with JustAnswer  and I am happy to assist you with your question. After reviewing  your question

You usually need to have the agreement of your company's directors and shareholders to close a limited company.

The way you close the company depends on whether it can pay its bills or not. If you had money owing to anyone during your business these are the people that need  to be notified.

You need make a tax return if your company, and inform HMRC of the dissolution of the company.

You also need to close the business account and use the Sole trader one indecently from the  business account.

I hope that answers your questions.

All the best

Expert Lu

Customer: replied 21 days ago.
Many thanks for your answers, they are really helpful.Please don't mind me following up with some additional ones.Should I submit a Corporate Tax return and pay Corporate tax before striking the company off or can tax be paid afterwards?Thanks again

Hello , you are most welcome , you can pay your corporation  tax before striking off the company.

Customer: replied 21 days ago.
Sorry do you mean, I can choose to pay my Corporation Tax before/ after striking off the company, or does this have to be done strictly before?Thanks!

At the start of your company being wound up, your current Corporation Tax accounting period comes to an end and a new accounting period begins. From that point on, your company’s accounting periods run for periods of 12 months until the winding up is complete.

Your company must continue to file a Company Tax Return and pay Corporation Tax on taxable profits arising from:

trading income and other income such as investment income

the sale of other goods or assets (chargeable gains) for example, to pay off creditors

Your company will pay any Corporation Tax due during the winding-up period at the same rates as before the winding up period started.

Hope that is clear now?

Customer: replied 21 days ago.
thank you very much for your great answers. In my particular case, my accountants shortened the Corporation Tax accounting period to 10 months - given the company wasn't generating profits and my wish to strike off. Does your previous answer still apply or will I only need to submit only one return for the 10 months?Thanks!
Hello, it would be the period of winding off.Hope your answered .
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