Closing down company costs

[CompoundOverload]

Hi all,

Currently in a position where I want to close down the company, having built up a decent war chest. I've had a discussion with my accountant about the options and they've agreed given I am now on a PAYE contract and the likelihood of outside roles being sparse this would be the most sensible option as I'd like to make use of the funds asap.

They've come back to me confirming that the costs involved with closing down the company are circa £4.4k + VAT - see breakdown below:

- £2.5k for the liquidators
- £1.5k for the accountants
- £400 to cover accounts, tax computation to cessation and de-registering the company.

Am I getting my pants pulled down here?

[northernladuk]

Seems a bit high looking at some of the numbers we've been quoted in the past. Ring Chris at MVOnline and get a quite form them. This is their bread and butter so I'll bet their rates are much more competitive.

Remember though, no more outside gigs for two years. Make sure you're happy with your decision. A trickle of people already regretting it.

[ladymuck]

When you say you want to get your hands on the cash ASAP, is that something you fed in as a requirement? Expedited liquidation is going to be pricier than if you let it bumble along.

But, as NLUK says, do check with other liquidation specialists for a comparison but do make sure you're clear about the completion timescales you're asking for.

[Lance]

seeing as your already paying the accountants to complete the books the extra £1.5k seems excessive. Ask them.
£400 to do the same again, and de-registering the company is a con. It's almost as if the accountants don't know how liquidation works. The liquidator will close the company as that's what they are paid for.

Your pants are round your ankles I think.

[jamesbrown]

Comically so, yes. Your pants are resting on your clown shoes, I'm afraid.

[CompoundOverload]

When you say you want to get your hands on the cash ASAP, is that something you fed in as a requirement? Expedited liquidation is going to be pricier than if you let it bumble along.

But, as NLUK says, do check with other liquidation specialists for a comparison but do make sure you're clear about the completion timescales you're asking for.

Well, the liquidation process is as long as it takes, circa 4-6 months from start to finish I believe. I'm not paying for an expediated service as I don't believe that is even a thing, so that is not a factor in the cost.

It would be worthwhile to see what other firms can offer....

Thanks

[CompoundOverload]

seeing as your already paying the accountants to complete the books the extra £1.5k seems excessive. Ask them.
£400 to do the same again, and de-registering the company is a con. It's almost as if the accountants don't know how liquidation works. The liquidator will close the company as that's what they are paid for.

Your pants are round your ankles I think.

In short, I've been advised that what I'm already paying them for covers only the bau side of running a business (i.e. accounts, payroll, vat, software and your personal tax return).

The closing of accounts is a stand alone event which involves more work on the accounts side (i.e. closing down all the tax registrations, accounts to completion etc).

The other fees are inclusive of "specialist tax advice" (i.e. reviewing circumstances to determine tax reliefs, which isn't ordinarily available on a routine basis, which entails significant time to review on an ad-hoc basis).

[eek]

In short, I've been advised that what I'm already paying them for covers only the bau side of running a business (i.e. accounts, payroll, vat, software and your personal tax return).

The closing of accounts is a stand alone event which involves more work on the accounts side (i.e. closing down all the tax registrations, accounts to completion etc).

The other fees are inclusive of "specialist tax advice" (i.e. reviewing circumstances to determine tax reliefs, which isn't ordinarily available on a routine basis, which entails significant time to review on an ad-hoc basis).

Accounts means creating another year end accounts if trading has occurred since.

Basically the accountancy market is dying in some ways and you are being taken for a ride..

[ladymuck]

You could deregister for VAT and PAYE yourself.

https://www.gov.uk/vat-registration/cancel-registration

https://www.gov.uk/stop-employing-staff

I guess it depends on whether you already managed those yourself or always had your accountant do them. If you never did anything with those then your accountant will be holding the login details and so will be charging you whatever their hourly fee is for the 15 minutes work it'll take them.

[eek]

You could deregister for VAT and PAYE yourself.

https://www.gov.uk/vat-registration/cancel-registration

https://www.gov.uk/stop-employing-staff

I guess it depends on whether you already managed those yourself or always had your accountant do them. If you never did anything with those then your accountant will be holding the login details and so will be charging you whatever their can get away with for the 5 minutes work it'll take them.

FTFY