ceasing trade and final pay from client

[company]

I'm bit confused about when to inform HMRC about my intention of ceasing trade. After the last day of contract or after receiving the payment from client for that (which may be another 15 days after that)?

I believe payments such as paying tax can be done even after ceasing trade, but how about receiving income for the work done before informing HMRC about ceasing trade.

Please let me know whether it is not a problem to receive income after ceasing trade.

[Craig at Nixon Williams]

From your previous post, I assume that you are looking to close down the company. This process can be kicked off as soon as you stop trading - we would normally notify HMRC that the company is being wound up once the final accounts and returns have been submitted.

Your accountant should take care of this for you if they have been instructed to wind up the company.

Hope this helps!
Craig

[company]

From your previous post, I assume that you are looking to close down the company. This process can be kicked off as soon as you stop trading - we would normally notify HMRC that the company is being wound up once the final accounts and returns have been submitted.

Your accountant should take care of this for you if they have been instructed to wind up the company.

Hope this helps!
Craig

Yes, I am in the process of closing down..

Stop trading? Is it last day of contract or the day last pay received ?

[Craig at Nixon Williams]

Stop trading? Is it last day of contract or the day last pay received ?

I would consider that to be the last day of the contract.

Craig

[company]

This process can be kicked off as soon as you stop trading - we would normally notify HMRC that the company is being wound up once the final accounts and returns have been submitted.

This contradicts with

"You will need to notify HMRC of your intention to cease trading as early as you can, though it is worth holding off submitting your final accounts for a few weeks or months to ensure that any late-occurring expenses can be included."

from Getting Some Closure: How to shut down your limited company :: Contractor UK

[Craig at Nixon Williams]

In our experience HMRC have never had an issue with being notified after the company has ceased trading - there would normally only be a couple of weeks in it anyway and that is quicker than HMRC generally operate!

In terms of waiting to submit accounts - this wouldn't be necessary for contractors as you are unlikely to incur any further expenses after trading has ceased, I think that part of the article is more suited for other types of business!

Craig

[company]

thanks much.. That clarified my doubt.

[BrilloPad]

Remember to keep bank account open for at least a year after it is struck off. I got a tax refund a year afterwards - luckily HMRC agreed to make the cheque out to me personally.

[northernladuk]

Remember to keep bank account open for at least a year after it is struck off. I got a tax refund a year afterwards - luckily HMRC agreed to make the cheque out to me personally.

What is the point in that? I thought that as there is no company and no directors to access the account it would be pointless doing this and you would be guaranteed to lose the money.

[Craig at Nixon Williams]

Remember to keep bank account open for at least a year after it is struck off. I got a tax refund a year afterwards - luckily HMRC agreed to make the cheque out to me personally.

Once the company has been struck off any assets (including cash in the bank account) become bona vacantia and any money that is in the company bank will be transferred to the treasury solicitor. It is therefore very important to ensure that the company has collected any amounts owed to it and closed the bank prior to the company being struck off.

Craig