Closing ltd company that hasn't traded in nearly a year

**radish2008** · 16 January 2018, 17:06

Originally posted by matei View Post

Hi all,

Should be a pretty straightforward query, but the accountant I use has me slightly confused. Apologies for the obvious (to some) question, alas I'm not an accountant and I didn't enjoy the admin part of running my ltd (hence why I hired one).

My ltd co. last invoiced in 02/2017. I haven't worked through it since then, been strictly PAYE since April 2017. I finally got around to winding down the company at the end of 2017, filed the DS01 etc.

I was trying to figure out what liabilities might arise, as I've already paid my corporation tax, payment on account etc and personal liabilities that arose from the previous tax year - I would assume there would be none, or close to none for the 2017-18 year, as I haven't been trading at all.

My account however is doing my head in as he states that I need to file and pay a final corporation tax return, and pay my ltd co. for any kit (a pokey auld laptop and a few office-related gadgets).

I can't see how I'd be paying any corporation tax - as I haven't been invoicing - or is there some arcane formula that the HMRC uses to gauge the possibility that you might've considered invoicing in a parallel universe, that they apply here?

Theer wasn't a whole lot left in the business account, only about £4K, which I've already transferred out (and said account has been closed). That money is sitting in an account, earmarked for any liabilities that might arise.

So you took out £4k of retained profits from your business account.

That will be liable to CT ?

Your CT bill will be about £800 then ?

**northernladuk** · 16 January 2018, 17:50

Well he should be doing a final return for you and it will say in there where he gets his numbers from?

**Alan @ BroomeAffinity** · 16 January 2018, 18:00

What’s the company year end? It may be that the last portion of your income hasn’t been returned yet. For example if your y/e is December and you had income in Jan and Feb then this will need to be accounted for on tax paid on it.

**Alan @ BroomeAffinity** · 16 January 2018, 18:01

Originally posted by radish2008 View Post

So you took out £4k of retained profits from your business account.

That will be liable to CT ?

Your CT bill will be about £800 then ?

No, you don’t pay ct on withdrawal of reserves. There might be personal tax due on it but not ct.

**matei** · 17 January 2018, 08:27

Hi,

The accountant instructed me to withdraw the funds from the business account and "put them to the side".

Ltd Co. last traded in 2016-2017 financial year, last invoice raised in February and paid by client in March. All liabilities paid, most recent corp. tax by January deadline. In March told accountant that ltd. co would be for all intents and purposes dormant, as I was offered a perm role that was too good to turn down.

I am eagerly awaiting the final return, curious to see these numbers.

Closing ltd company that hasn't traded in nearly a year