Closing Ltd down after 6 months

[Mor4]

HI

if i wanted to close my company down which had a turnover (so far) of £12k how would i go about it ?

What would happen if i kept the company and i got a permie ? >>> Tax wise etc

Any implications i.e. IR35 and VAT ?

How much would it cost me in the short term ?

I have done some research but i haven't found any concrete answers.

Credit Crunch thinking of jumping ship for the mean time .

Regards
Mor4

[pmeswani]

HI

if i wanted to close my company down which had a turnover (so far) of £12k how would i go about it ?

What would happen if i kept the company and i got a permie ? >>> Tax wise etc

Any implications i.e. IR35 and VAT ?

How much would it cost me in the short term ?

I have done some research but i haven't found any concrete answers.

Credit Crunch thinking of jumping ship for the mean time .

Regards
Mor4

Do a search on this site for CT 300 (or something similar). In terms of cost and your other issues... speak to your accountant... and if you don't have an accountant, you will need to find one soon.

[BolshieBastard]

HI

if i wanted to close my company down which had a turnover (so far) of £12k how would i go about it ?

What would happen if i kept the company and i got a permie ? >>> Tax wise etc

Any implications i.e. IR35 and VAT ?

How much would it cost me in the short term ?

I have done some research but i haven't found any concrete answers.

Credit Crunch thinking of jumping ship for the mean time .

Regards
Mor4

You get your accountant to do it. Then HMRC have to give final permission for the company to be struck off. Closing it down though could flag it up to them for all sorts of investigations, ie ir35, s660, VAT etc.

Probably better to just make it dormant ie not trading for the rest of its accounting year then either initiate closure or start trading again.

[TykeMerc]

If you're only thinking about going perm as an interim measure (even a few years) there's nothing to stop you keeping your Ltd company open and dormant, it's entirely up to you.

[SantaClaus]

Make a capital distribution using taper relief and any remainder using your capital gains allowance.
Ask your accountant for specifics.

At least, thats how I did it years ago.

[TheFaQQer]

If you've only done one contract, then there is a chance that HMRC could say that you had no intention of running a business, and charge you additional tax / NIC.

[Mor4]

If you've only done one contract, then there is a chance that HMRC could say that you had no intention of running a business, and charge you additional tax / NIC.

Thanks for the quick responses .


Yes this was the only contract through my ltd. I really wanted to stay with the ltd setup but after reading the doom and gloom i am bit scared for the next couple of months.

The situation is quite simple in terms of the current contract.I am on very good terms with the management and i have been told that i will have to leave once they get the permie in due to chief exec saying cut out the contractors.I have been looking at the contracting market for 2nd line its quite bleak at the moment.

If you're only thinking about going perm as an interim measure (even a few years) there's nothing to stop you keeping your Ltd company open and dormant, it's entirely up to you.

I will look into "dormant"

Regards
Mor4

[TheFaQQer]

I will look into "dormant"

Regards
Mor4

If you are likely to return to contracting, then that may well be the best move (IANAA).

Best of luck with finding either another contract or a permie role.