How to close down my company..?

[jamesbrown]

There is a degree of common sense to all this. Making large payments immediately prior to strike off doesn't pass the common sense test, imho, although I have no cases I can point to to back up that opinion. By all means, seek other, actual professional, opinions. If Maslins can be bothered, perhaps he has a view, for example. Personally, I would go the liquidation/MVL route if there is something substantially north of £25k in retained profits immediately prior to closure.

[Darren_Test]

If you have less than £25k in retained profit, follow the simple strike off procedure by submitting a DS01 form to Companies House. It used to take about 3 months to finalize from the time of DS01 submission. Cost is £10. If you have more than £25k in retained profit, then you'll need to MVL. Either way, there is a correct order to doing things, so perhaps ask the people you're paying £70/month!

Currently I have £26K balance and last 2 years no invoicing done. Only transactions were Bank fees, Accountant fees and occasional dividend to me.
My accountant just informed me for the accounting year ending Jan 2023 there was a 10K dividend paperwork issued to me in 2022, but I haven't taken that £10K from account. So I am planning to withdraw that amount as well. That will make balance close to £16K.

Correct procedure is first empty account and then submit DS1 form..?
Thanks.

[Darren_Test]

Leave it in a car park somewhere and forget about it.

Most accountants offer reduced rates for non trading companies. Did you ask them?

Yes mine too offering discounted accounting fees. That is £70/month!

[Darren_Test]

depending on the total value, it could be worthwhile dropping a bunch of ££££ into a pension to get the retained profit down to £25k, and then going for a voluntary strike off.

If I didn't withdraw first , I will loose that £20K when I do voluntary strike?? Thanks

[jamesbrown]

Currently I have £26K balance and last 2 years no invoicing done. Only transactions were Bank fees, Accountant fees and occasional dividend to me.
My accountant just informed me for the accounting year ending Jan 2023 there was a 10K dividend paperwork issued to me in 2022, but I haven't taken that £10K from account. So I am planning to withdraw that amount as well. That will make balance close to £16K.

Correct procedure is first empty account and then submit DS1 form..?
Thanks.

Yes, close the bank accounts first.

Aside, but how could you possibly not know about dividend paperwork? Sounds like your "accountant" is an MSCP. Anyway, probably best all around that you are closing the company.

[Darren_Test]

How about closing it the same way you closed your previous companies, or is it because you've a lot more cash in this one?

I was hoping some point I can go back to Contracting. But now it is clear that I may not be able to do that for long time due to market conditions. So closing down company legally to ensure another occasion I could be come a director again? thank.

[Darren_Test]

Not trading for a long period and then paying large expenses or dividends immediately prior to a strike off to ensure retained profits are below £25k for a strike off? Could be a problem. But YMMV, as always.

In that case how many months I need to wait for strike off request..? Thanks.

[Darren_Test]

There is a degree of common sense to all this. Making large payments immediately prior to strike off doesn't pass the common sense test, imho, although I have no cases I can point to to back up that opinion. By all means, seek other, actual professional, opinions. If Maslins can be bothered, perhaps he has a view, for example. Personally, I would go the liquidation/MVL route if there is something substantially north of £25k in retained profits immediately prior to closure.

I will loose themoney left in the account if I go to liquidation/MVL or strike off route..? thanks.

[jamesbrown]

In that case how many months I need to wait for strike off request..? Thanks.

If you have £26k in retained profit (and perhaps a dividend outstanding on the DL account), it's a non-issue. You can strike off with £25k or less.

[jamesbrown]

I will loose themoney left in the account if I go to liquidation/MVL or strike off route..? thanks.

Again, if you have £26k in the account, no need for an MVL, a strike off works fine. Take your outstanding dividend payment from the DL account, pay any outstanding debts, submit any final accounts and pay HMRC any tax owed, close the bank accounts and submit the DS01. It will take about 3 months to complete the strike off, assuming HMRC doesn't object.