How to close down my company..?

[Darren_Test]

I have been out of contracts after IR35 changes. I have some money in my account which I am planning to withdraw soon. Last 2 years unnecessarily paying £70/month to my (reduced rate) for all yearly returns company & personal. What is the procedure and timeline I need to follow to close down my company corresponding bank account..? thanks

[jamesbrown]

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!

[northernladuk]

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

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

[Lance]

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!

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.

[jamesbrown]

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.

Yes, although some caution may be warranted with large payments immediately prior to strike off, as they could be seen as doing precisely what they are intended to do, namely to facilitate a simple strike off and tax advantage. Take advice on that one - I have no knowledge of horror stories in this regard, just flagging it.

[northernladuk]

You tried searching as this has been asked 100's of times... looks at name of OP.... bah.. no then.

[WTFH]

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?

[Lance]

Yes, although some caution may be warranted with large payments immediately prior to strike off, as they could be seen as doing precisely what they are intended to do, namely to facilitate a simple strike off and tax advantage. Take advice on that one - I have no knowledge of horror stories in this regard, just flagging it.

company pays legitimate expense prior to strike off..... How could that be a problem?

[jamesbrown]

company pays legitimate expense prior to strike off..... How could that be a problem?

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.

[Lance]

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.

if 'not trading' is looking for work then not finding it then this is fine. but that is trading.

But as with all these things, make a decision as soon as is possible. For me I'd have some minutes from a board meeting saying summat like
"The board agrees that in these uncertain times, to spend 9 months looking for more business, and if none found then consider closing then business."