Cost of closing company

[russell]

Whats the cost of closing a limited company? Not for any tax reasons just want to close it. Once closed do I need to keep the documents?

[northernladuk]

Do a search for liquidation. We been over this 3 or 4 times recently. Quick answer however is between 5k and 3.5k plus bits n pieces but this will come down over time....

They can go back 6 years so best to keep if you can.

There is an interesting article on PCG warning about liquidating a company and setting a new one up as well btw

[russell]

Do a search for liquidation. We been over this 3 or 4 times recently. Quick answer however is between 5k and 3.5k plus bits n pieces but this will come down over time....

They can go back 6 years so best to keep if you can.

There is an interesting article on PCG warning about liquidating a company and setting a new one up as well btw

What the what! why does it cost so much? It only cost £20 to open one? Can't be right, my accountant quoted me a few hundred last time I asked.

[Clare@InTouch]

What the what! why does it cost so much? It only cost £20 to open one? Can't be right, my accountant quoted me a few hundred last time I asked.

To close a normal company with little profits - £300 ish.

To liquidate because your profits are above £25k - a few thousand.

The liquidation route is only worth the extra professional fees if your profits are around £50k. Otherwise the income tax you save is outweighed by fees.

[russell]

To close a normal company with little profits - £300 ish.

To liquidate because your profits are above £25k - a few thousand.

The liquidation route is only worth the extra professional fees if your profits are around £50k. Otherwise the income tax you save is outweighed by fees.

It will have little or no profits. I will have taken everything as divvies beforehand

[ASB]

It will have little or no profits. I will have taken everything as divvies beforehand

But, depending upon your tax position, if you go the MVL route then this is a capital distribution and subject to entrepreneurs relief (but if you can get the profits out via divvies in a reasonable timeframe and with no higher rate tax it wouldn't be beneficial)

[northernladuk]

Did you ask your accountant for advice?

Alan is one of the main guys posting info about Liquidation as it happens.

[Maslins]

Google for form DS01, which you can complete and send to Companies House with a cheque for £10.

You'll need to ensure any company debts are settled in full first (including taxes). It's writing to HMRC and assisting with the forms that I imagine gets Clare to her figure of £300 (what an accountant would charge to deal with it for you).

NB when you say "It will have little or no profits. I will have taken everything as divvies beforehand", bear in mind dividends come out of profits, so it sounds like you have made a profit and therefore will likely have a corporation tax liability to settle.

Much as I'd love to pimp my MVL company, in this instance it doesn't sound appropriate in your circumstances, so I think you can ignore those suggesting £3k-5k.

[russell]

Google for form DS01, which you can complete and send to Companies House with a cheque for £10.

You'll need to ensure any company debts are settled in full first (including taxes). It's writing to HMRC and assisting with the forms that I imagine gets Clare to her figure of £300 (what an accountant would charge to deal with it for you).

NB when you say "It will have little or no profits. I will have taken everything as divvies beforehand", bear in mind dividends come out of profits, so it sounds like you have made a profit and therefore will likely have a corporation tax liability to settle.

Much as I'd love to pimp my MVL company, in this instance it doesn't sound appropriate in your circumstances, so I think you can ignore those suggesting £3k-5k.

Thanks Maslins, the reply I was looking for!

[Wanderer]

You'll need to ensure any company debts are settled in full first (including taxes). It's writing to HMRC and assisting with the forms that I imagine gets Clare to her figure of £300 (what an accountant would charge to deal with it for you).

Don't you have to file final accounts for the company too? This is probably why an accountant would charge a bit of money for the service.

Or will HMRC allow it to be struck if you can convince them that the company is pretty much unused since it's last accounts and it's not worth objecting to the move to strike?