Help Needed To Close My Ltd Company

[Lewis Moore]

Hi,

I only started my Limited Company around 6 weeks ago and signed up with an accountant. I have had an opportunity arise that means I will need to close my limited company with my final payment into the company being on the 22nd of January.

I am discussing the prospect of filing the first and final accounts with my current accountant, however, they are quoting me £750 to close my limited company! Having been with them less than two months, I think this price is a bit high.

Is there any independent accountants or companies that can help me do these one off accounts and close my company?

I am new to contracting so I'm unsure on a lot of it and find it quite complex. Any help would be greatly appreciated!

[ContrataxLtd]

Hi,

I only started my Limited Company around 6 weeks ago and signed up with an accountant. I have had an opportunity arise that means I will need to close my limited company with my final payment into the company being on the 22nd of January.

I am discussing the prospect of filing the first and final accounts with my current accountant, however, they are quoting me £750 to close my limited company! Having been with them less than two months, I think this price is a bit high.

Is there any independent accountants or companies that can help me do these one off accounts and close my company?

I am new to contracting so I'm unsure on a lot of it and find it quite complex. Any help would be greatly appreciated!

Hi Lewis

You may just want to check your engagement letter to see what fees you agreed to as you probably haven't paid them much so far in the way of accountancy fees and in theory the work needed to do a set of accounts for a full year to compared to just a couple of months trading then closure isn't really much different.

£750 may be a little steep (assuming it is ex VAT) but probably not too far off the mark. On the limited information given we'd probably be looking at ~£500+VAT for something like this.

Martin
Contratax Ltd

P.S I wouldn't use your real name on the forum if that is your real name. I could take a stab in the dark that you live in Surrey just from your post and a quick google (although I could easily be wrong).

[Maslins]

I'm afraid to say it probably makes sense for you to suck it up. Ltd Cos really aren't suitable for such short term stints. Your accountant will have presumably helped set the company up, register it for various taxes, explain to you how lots of things will work...and now after getting only a couple of months fees need to unpick all that including doing a full set of accounts & CT return, probably a VAT return, potentially some bits of payroll...and you'll likely also have to do a personal tax return further down the line.

There's another recent thread on this forum about how cheap and easy it is to incorporate a Ltd Co. It is, and I guess that is a good thing...but I think there is a risk it means people go ahead and do it without really thinking through the consequences.

A bit like a puppy, a Ltd Co isn't just for Christmas I'm afraid. You may potentially get cheaper quotes elsewhere, but the accountant isn't stitching you up here.

[Yonmons]

Hi,

I only started my Limited Company around 6 weeks ago and signed up with an accountant. I have had an opportunity arise that means I will need to close my limited company with my final payment into the company being on the 22nd of January.

I am discussing the prospect of filing the first and final accounts with my current accountant, however, they are quoting me £750 to close my limited company! Having been with them less than two months, I think this price is a bit high.

Is there any independent accountants or companies that can help me do these one off accounts and close my company?

I am new to contracting so I'm unsure on a lot of it and find it quite complex. Any help would be greatly appreciated!

6 weeks trading is not going to amass a lot of trade

If you are not registered for VAT, I would just download the form DS10 from companies house send it off with your £10 payment, and monitor the company status on Companies House website, 3 months later the company will be dissolved.

NB you should wait 3 months (officially) from the last day of trading before sending the form off. Clear your debts if any and et viola no more Ltd Company. Accountants will frighten you to death probably want more than you have turned over to close it. I've self closed when I have opened one then plans have changed and its not been needed. You could of course do the same if you ARE registered for VAT but I wouldn't know how to close the scheme down sure its just a bit of form filling. Plenty of info on how to do the forgoing on Google/companies house web site. Course I don't know what your Accountants contract says........

[philip@wellwoodhoyle]

If you are not registered for VAT, I would just download the form DS10 from companies house send it off with your £10 payment, and monitor the company status on Companies House website, 3 months later the company will be dissolved.

What about the corporation tax due on the trading profits for those few weeks. Someone needs to prepare accounts to show the profit, which then needs to be part of the corporation tax return which must be submitted, and then the corporation tax due must be paid, all before the DS10 striking off procedure can start.

[Maslins]

6 weeks trading is not going to amass a lot of trade

If you are not registered for VAT, I would just download the form DS10 from companies house send it off with your £10 payment, and monitor the company status on Companies House website, 3 months later the company will be dissolved.

NB you should wait 3 months (officially) from the last day of trading before sending the form off. Clear your debts if any and et viola no more Ltd Company. Accountants will frighten you to death probably want more than you have turned over to close it. I've self closed when I have opened one then plans have changed and its not been needed. You could of course do the same if you ARE registered for VAT but I wouldn't know how to close the scheme down sure its just a bit of form filling. Plenty of info on how to do the forgoing on Google/companies house web site. Course I don't know what your Accountants contract says........

It's the bold bit that's the issue. If your company has had some income, then it'll most likely have a corporation tax liability. For HMRC to know how much that is, a corporation tax return with full accounts need to be submitted online. This is the bit that potentially you could DIY, but it's not easy.

Like you suggest, there's potentially something similar to be done for both VAT and PAYE, depending upon what tax registrations have been put in place.

If you send off the DS01 without doing the above, then you're attempting to commit tax evasion.

[craigy1874]

6 weeks trading is not going to amass a lot of trade

If you are not registered for VAT, I would just download the form DS10 from companies house send it off with your £10 payment, and monitor the company status on Companies House website, 3 months later the company will be dissolved.

NB you should wait 3 months (officially) from the last day of trading before sending the form off. Clear your debts if any and et viola no more Ltd Company. Accountants will frighten you to death probably want more than you have turned over to close it. I've self closed when I have opened one then plans have changed and its not been needed. You could of course do the same if you ARE registered for VAT but I wouldn't know how to close the scheme down sure its just a bit of form filling. Plenty of info on how to do the forgoing on Google/companies house web site. Course I don't know what your Accountants contract says........

DONT DO THIS - This is tax evasion! Utterly dreadful advice.

[Alan @ BroomeAffinity]

DONT DO THIS - This is tax evasion! Utterly dreadful advice.

Absolutely this. But even if you did, HMRC would likely block the dissolution anyway. But still, really bad advice.