Best Time To Close LTD Company

[Maslins]

I wouldn't worry too much about it from a company year end perspective. Yes, if you have one sales invoice just after the year end it could be slightly annoying...but where this can't be dealt with via accrued income, it's not too much effort to extend the accounting period slightly.

If you're in full control and there's no other factors to consider, then I guess ceasing shortly before a year end would make the admin slightly easier...but like I say, shouldn't be a major consideration.

[VectraMan]

The one I closed I did at the year end. Paid the remaining money as a dividend and submitted the final CT600, accounts and paid the CT on the day after and then sent off the forms and went to see the bank a few days after that. There's always going to be some time between your year end and when the company actually closes; it won't officially be closed until months after, but as long as you don't trade you don't need to worry about accounts for the partial year.

I'm sure you can do it mid way through the year. But you can't avoid having to submit accounts for any year you've traded in, obviously.

[Bones]

I could be wrong here, but tax-wise it might be worth asking if you could get two distributions from your MVL in two different tax years. ie, 1st one just before 6 Apr and 2nd one just after 6 Apr. That way you might be able to use two years worth of CGT allowances rather than one?

Maslins might want to correct me if that's not right.

In my case there wont be any money left in the business by the time I close it.

However I was hoping to close it without having to pay several hundred quid for accounts that show no trading.

[alphadog]

I could be wrong here, but tax-wise it might be worth asking if you could get two distributions from your MVL in two different tax years. ie, 1st one just before 6 Apr and 2nd one just after 6 Apr. That way you might be able to use two years worth of CGT allowances rather than one?

Maslins might want to correct me if that's not right.

[eazy]

Company year End

I would have thought the best time is to close at or around the end of company accounting period - i.e. no further trading. Otherwise you may need to have additional set of accounts prepared (assuming accounting period cannot be extended) with the associated cost.

[Bones]

There is no right answer. It really depends on what you are doing next. Going perm, retiring, travelling etc. You may keep it open to trickle the money out over the long term or close it immediately as there is no financial benefit to keep it open. Depends on the circumstances of the situation.

I would have imagined that its most cost effective to close it just after account have been completed? And the worst time would be going over the tax/company year committing you to another years accounting? (In principle)

Personally I am going into business and have trickled the money out, (almost complete).

[northernladuk]

There is no right answer. It really depends on what you are doing next. Going perm, retiring, travelling etc. You may keep it open to trickle the money out over the long term or close it immediately as there is no financial benefit to keep it open. Depends on the circumstances of the situation.

[Bones]

I know this question has been asked before but I cant find any kind of advice that answers the question, so...

On the basis that I am not asking when to close 'my' ltd company, and if you are prepared to just throw money at it you can always close it anytime.

I am asking in terms of tax year, company year, accounts cost etc.