Closing down ltd co

[contractor79]

Hi
I've not been contracting for a few months. I have 3 years accounts at my ltd co. I might take more time off working for study and travel so will not require a company for a while.

Should I close down my ltd co, can you explain to me any disadvantages of closing it down compared to making it dormant?

My insurances are due for renewal next month and I don't fancy paying for that if I'm not using the company.

[Olly]

If you don't fancy paying insurance then don't. There are no mandatory insurance requirements for a one man ltd.

[The Wikir Man]

If you don't fancy paying insurance then don't. There are no mandatory insurance requirements for a one man ltd.

You might want to check out this thread where the debate / argument is going on. In particular, read Zeity's post which cites the legal reference.

If you are cancelling the insurance, make sure that you have an appropriate run off period to cover you for any future claims.