Closing down ltd company

**BolshieBastard** · 23 August 2009, 21:13

Originally posted by nav1 View Post

All,

Please advice what is the process of closing down the company... any experience?

1. How much does it cost?
2. What is the best way of withdrawing money from the company?
3. Any other thing i have to take care of it? does bank charges anything for clsoing business bank accounts?

looking forward for expert advice ...

-Thanks
Nav

Get an accountant to do it.

HMRC must first sign it off otherwise you cant close the company.
Draw out all the money up to the outstanding liabilities and debts ie Corp tax, VAT, outstanding credit card bills and accountants fees etc. This list is not exhaustive.

Your bank may charge a fee for closing the banking accounts, check with them.

You'll have to pay for final accounts if using an accountant unless you intend closing the co on its year end.

**sweetandsour** · 23 August 2009, 21:36

Originally posted by nav1 View Post

All,

Please advice what is the process of closing down the company... any experience?

1. How much does it cost?
2. What is the best way of withdrawing money from the company?
3. Any other thing i have to take care of it? does bank charges anything for clsoing business bank accounts?

looking forward for expert advice ...

-Thanks
Nav

Get your accountant to do it. You do have an accountant?

Assuming that you are Contracting and using a Limited Company and your affairs are not more complex than that then an Accountant can write to HMRC and ask for Extra Statutory Concession 16 to be applied to the winding up and distribution of assets in the company.

The winding up process is then simple. You just pay the outstanding taxes and other debts and take the rest of the cash and other assets yourself provided that you are the only shareholder.

This does require approval from HMRC but that should not be an issue as long as your company's affairs are simple and you don't have a history of asking for the same thing.

Otherwise you are looking at a formal winding-up which could cost a few thousand £ in fees.

**nav1** · 23 August 2009, 22:07

how do you mean simple affair. I was using for Contacting and used it just for invoices, VAT etc. i have already completed a year and CT has been filed, all VAT have been paid, and self tax assessment has been done for me.

even as of today nothing due.

so if i ask my accoutnats to close down what sort of charges can come up?
and how to withdraw the money, will it be called as a dividend payment(whole sum) or bonus or something extra???

**eliquant** · 23 August 2009, 22:35

and don't leave any money in the account after you close the company, after 1 year the money in there becomes 'Bona Vacantia" latin for 'ownerless goods' and it ALL goes to Gordon Brown automatically and they freeze your account.

**JoJoGabor** · 24 August 2009, 09:02

My accountant proposed to charge me £300 to close the company, I decided to leave it dormant instead and do the bits of paperwork myself to deregister for VAT, do the COmpanies House returns, just have to submit the end of year accounts now. Its a pain in the bum, but I couldn't see how it could cost £300

**Bright Spark** · 24 August 2009, 10:30

Originally posted by JoJoGabor View Post

My accountant proposed to charge me £300 to close the company, I decided to leave it dormant instead and do the bits of paperwork myself to deregister for VAT, do the COmpanies House returns, just have to submit the end of year accounts now. Its a pain in the bum, but I couldn't see how it could cost £300

That's not too bad, I once had a dispute with a tenant and the solicitor
I had at the time used to charge me £120 for a letter!, it needed about
10 letters and 3 phone calls to resolve the matter!.

**rhubarb** · 24 August 2009, 10:50

Originally posted by eliquant View Post

and don't leave any money in the account after you close the company, after 1 year the money in there becomes 'Bona Vacantia" latin for 'ownerless goods' and it ALL goes to Gordon Brown automatically and they freeze your account.

Been there my man. GOD what a nightmare that was.

**Darren_Test** · 24 August 2009, 11:37

if we allow company to reach natural death, what will happen..?? ie closes bank account, not responding to companies house reminders & not filling returns or accounts for couple of years...Finally company house will dissolve the company. I could see 1000's of such dissolved companies in their website.

Will it create any future trouble..???

NB.
Assuming no liability for the company...

**VectraMan** · 24 August 2009, 12:13

Can you close a company (or make it dormant) when it's still owed money, and still be able to collect that money? Or is the fact that there's still money owed means it has to be counted as trading?

Closing down ltd company