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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10609
Experience:  FCCA FCMA CGMA ACIS
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I wanted to check the options I have for closing the Limited

Customer Question

Dear Sir/Madam,I wanted to check the options I have for closing the Limited company.The company was dormant for more than a year. It has less than 16K of remaining funds on the business account.I've been told that to close the company I have to:
1. Take all of the remaining funds as Capital Gain from the business account to my private account
2. Submit a closing company form to the companies house
3. Submit subsequently the self-assessment form to HMRC indicating Capital Gain as the source of the extra income for this yearNote: I've been on the permanent employment for this year with salary 80K.Questions:1. Will I have any extra taxes in this case or as mentioned previously I put the extra income against the Capital Gain and the only taxes I pay for this year will the the taxes I am currently paying as part of my permanent employment?
1,5 Is submitting self-assessment in addition to the tax form submitted by the company I am permanently employed by possible and right thing to do?
2. When do I need to submit self-assessment form, at the end of the financial year or ideally I would do it immediately after closing the company?
3. Do I need to submit final company accounts for this year or after submitting the company closure request it won't be necessary?
4. I understand that I need to take the Capital Gains out of the company accounts prior to closing the company, so at the moment of submitting the application for closing the company the accounts are empty, is that correct?
5. When do I need to close the company business account, provided step 4 is already done? Does it matter if I do it before or after submitting the application for closing the company?Thanks and kind regards
Submitted: 14 days ago.
Category: Tax
Expert:  Virtual-mod replied 14 days ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Expert:  bigduckontax replied 13 days ago.

With respect, stop thrashing about; just flog the company off on say eBay. I did this for some friends and disposed of a bog standard company for £500 to an organisation desperate to acquire a company with a trading record.

Customer: replied 13 days ago.
When selling the company, there is the same question about the taxes. What happens with the taxes from the funds remaining on the company business account and in addition to that you get to pay taxes from the company sell as well...
Expert:  bigduckontax replied 13 days ago.

They pass to the buyer of the company.