close company - whats involved

[hgllgh]

Anyone know what's involved with closing your company down? How do I go about it and how long does it take? I've heard that ESC16 (for 10% CGT) can take around 3 months! If that's the case then I am not going to have enough time to close the company down before I leave!


I will be traveling the globe for 5 - 6 months starting in around 3 months. After contracting solid for 3.5 years this also gives me an excuse(hopefully) to close down the company and pay 10% CGT tax. (However I will want to start contracting again when I get back so hopefully won't be classed as a 'pheonix' company ). This way I can get access to the all the funds in the business account to take advantage of the falling house market so should be able to pick up a flat without a mortgage which will save a pretty penny in the long run

[pmeswani]

Anyone know what's involved with closing your company down? How do I go about it and how long does it take? I've heard that ESC16 (for 10% CGT) can take around 3 months! If that's the case then I am not going to have enough time to close the company down before I leave!


I will be traveling the globe for 5 - 6 months starting in around 3 months. After contracting solid for 3.5 years this also gives me an excuse(hopefully) to close down the company and pay 10% CGT tax. (However I will want to start contracting again when I get back so hopefully won't be classed as a 'pheonix' company ). This way I can get access to the all the funds in the business account to take advantage of the falling house market so should be able to pick up a flat without a mortgage which will save a pretty penny in the long run

Leave your company running, speak to your accountant and tell them you need some money fairly quickly so that you can go on holiday. They will advise you how to go about it and still keep your company open. When you come back in 3 months time, you will be rocking and rolling.

[hgllgh]

cheers ... but i think closing the company down would be a good way of getting access to all of the money in my business account whilst paying only 10% CGT tax. Also, I haven't got an accountant currently after ditching my old one!

Anyone closed down their company through ESC16?

[ASB]

cheers ... but i think closing the company down would be a good way of getting access to all of the money in my business account whilst paying only 10% CGT tax. Also, I haven't got an accountant currently after ditching my old one!

Anyone closed down their company through ESC16?

Yes, lot's of people have including me. Try a search, for me it was a couple of years ago and didn't take long at all for the local inspector to agree. About 2 weeks if I recall correctly.

This might help a bit but the threads I referenced don't seem to be there any more.

http://forums.contractoruk.com/accou...lications.html

There is a lot of info about the undertakings you need to give on the HMRC website. But the basic process is:-

1) Write to HMRC saying "gimme ESC16. Promise we'll pay all capital gains and have the company struck off".
2) Get confirmation
3) Get the dosh
4) Do the final accounts
5) Ask for co to be struck off

Ensure that 3 happens before 5 though......

[BolshieBastard]

HMRC give the final OK to close the company so its as long as they take to agree \ disagree.

Basically you tell your accountant to close the company. He'll prepare your final accounts and arrange all the necessary paperwork. Then its a question of getting HMRC approval.

[hgllgh]

Yes, lot's of people have including me. Try a search, for me it was a couple of years ago and didn't take long at all for the local inspector to agree. About 2 weeks if I recall correctly.

This might help a bit but the threads I referenced don't seem to be there any more.

http://forums.contractoruk.com/accou...lications.html

There is a lot of info about the undertakings you need to give on the HMRC website. But the basic process is:-

1) Write to HMRC saying "gimme ESC16. Promise we'll pay all capital gains and have the company struck off".
2) Get confirmation
3) Get the dosh
4) Do the final accounts
5) Ask for co to be struck off

Ensure that 3 happens before 5 though......

thanks for the info ASB.
what's your view of a possible IR35 investigation being triggered from an ESC16?

[ratewhore]

wtf is a phoenix company?

I closed my company down last year. Just took one phonecall to my accountant and signing a few forms they sent to me...

[NickNick]

wtf is a phoenix company?

I closed my company down last year. Just took one phonecall to my accountant and signing a few forms they sent to me...

A company closed down, only for another to rise from it's burning embers. Usually one that is remarkably similar to the previous one.

Happens a lot with agencies IME.

[ratewhore]

I gathered that, maybe I should have phrased my question differently;

Is there an official HMRC position on what a phoenix company is and how it relates to tax law?

[max]

thanks for the info ASB.
what's your view of a possible IR35 investigation being triggered from an ESC16?

unlikely...different parts of the gang.