How do I notify HMRC about closing down business?

[Martin at NixonWilliams]

Thanks Martin but it doesn't really answer my question. My situation is dead simple it doesn't require an accountant. I've already sent my 2013-2014 tax return and I need the next one for a couple of months, not a full year. The notice on the 2014-2015 one says I can't change the date for more than 7 days, so should I call them up? Or should I just complete and send a DS01 to Companies House which will sort everything out for me? i.e. make them ask me to send the abbreviated accounts an tax return for the remainder of time?

Hi Moonstorm,

Yes, contact HMRC and ask them to change the accounting period end to the date you wish to close the company. Enter your corporation tax office details into HMRC's tax office locator at the following link to find the best number to call.

HMRC Contact us

As the other posters have said, the DS01 should be sent last.

As mentioned in my original post, I would advise you to give careful thought to how the funds remaining in the company affect your income tax position when the company is dissolved as there are a lot of possibilities.

I hope this helps.

Martin

[VectraMan]

In other words, which one goes first? The DS01 form or the last CT600?

Make sure everything's square with HMRC first (i.e. do the CT600 and pay them the money). Then do the DS01 and send HMRC a copy. It doesn't matter too much if there's a bit of a gap between the two as long as you're not trading.

And remember to extract any money from your bank account because it'll become the property of the crown. Hard to believe anyone could ever be that stupid, but there have been a few on here...

[JB3000]

In other words, which one goes first? The DS01 form or the last CT600?

Last CT600, and the fact that you didn't know the answer to this "dead simple" question suggests you are probably making (going to make) all kinds of mistakes.

[stek]

Thanks Martin but it doesn't really answer my question. My situation is dead simple it doesn't require an accountant. I've already sent my 2013-2014 tax return and I need the next one for a couple of months, not a full year. The notice on the 2014-2015 one says I can't change the date for more than 7 days, so should I call them up? Or should I just complete and send a DS01 to Companies House which will sort everything out for me? i.e. make them ask me to send the abbreviated accounts an tax return for the remainder of time?

If it's dead simple then why are you asking?

[MoonStorm]

In other words, which one goes first? The DS01 form or the last CT600?

[MoonStorm]

Thanks Martin but it doesn't really answer my question. My situation is dead simple it doesn't require an accountant. I've already sent my 2013-2014 tax return and I need the next one for a couple of months, not a full year. The notice on the 2014-2015 one says I can't change the date for more than 7 days, so should I call them up? Or should I just complete and send a DS01 to Companies House which will sort everything out for me? i.e. make them ask me to send the abbreviated accounts an tax return for the remainder of time?

[Martin at NixonWilliams]

I'm in the process of closing down my ltd, but between cancelling the VAT and informing the Companies House, I feel I'm missing a couple of steps. Actually there is one more creditor to deal with, and that is HMRC. What is the exact procedure to inform them and activate the right dates for the latest online CT600? Couldn't find any form or any other means of making them ask for the latest tax return. Thanks for your help.

Do you not have an accountant? There is a lot to consider here and I would suggest that you get the right advice.

The CT600 can just be for the period since your last CT600 to the point you wish to close. If you submit them through HMRC's site they can normally change the period over the phone. If you are extending your yearend you will need to prepare two CT600 forms as they cannot exceed 365 days. Once the final accounts and CT600 are submitted you should inform HMRC in writing that the company has ceased to trade and will be struck off with Companies House. A similar process should be followed with your PAYE scheme.

The bit where your accountant comes in is how you can reduce the tax payable on the closure. You have a number of things to consider to make this as cost effective for you as possible, such as any basic rate allowances you have remaining, your spouses position, your CGT position, whether a formal liquidation is required, whether you are eligible for entrepreneurs relief etc. etc.

I hope this helps.

Martin

[MoonStorm]

I'm in the process of closing down my ltd, but between cancelling the VAT and informing the Companies House, I feel I'm missing a couple of steps. Actually there is one more creditor to deal with, and that is HMRC. What is the exact procedure to inform them and activate the right dates for the latest online CT600? Couldn't find any form or any other means of making them ask for the latest tax return. Thanks for your help.