my client only incorporated in March this year but has now decided to go back in to full time employment and so wishes to close the company. I need some advice on how to go about this as I'm not sure of timings..... They want to close the company at their year end so do I apply to strike off 3 months before his year end or do you apply strike off after his year end? (There is no movement on the accounts now )
You can apply for strike off 3 months after the Company has ceased trading, so the timing is really up to him.
It takes approximately 3 months to strike off a company so I would do it 3 months before year end. However, if anyone objects (eg HMRC) then it can be take longer.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Thank you both. Yes but only for 6 months , but has decided now to go back into full time employment . Their year end is March so I want like to tie this all up then if I can.?
Why do they want to close their company at their year end as you can start the process at any time.
I would shorten the accounting period to when they ceased trading or 6 months after incorporation, whichever later, prepare accounts and CT return and submit to CH and HMRC respectively.
Then once have ceased trading for at least 3 months apply to strike off company with CH notifying all relevant parties ie directors, shareholders, HMRC etc. Then provided no one objects company should be gone about 3 months after that.
I said in my previous post "It takes approximately 3 months to strike off a company so I would do it 3 months before year end. However, if anyone objects (eg HMRC) then it can be take longer.
MarkS wrote:
I would shorten the accounting period to when they ceased trading or 6 months after incorporation, whichever later, prepare accounts and CT return and submit to CH and HMRC respectively.
Follow Mark's suggestion and get the CT return done as soon as possible, and it will greatly reduce the likelihood of HMRC objecting (imo)
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Sorry this may sound like a couple of daft questions but why would HMRC object? And won't I come across a problem when I try and submit a tax return if the company is less than a year old?
Hi Georgie
HMRC will not find it odd if you shorten the reporting period/ company year as Mark suggests.
HMRC and indeed any creditor (including your fees) would only be likely to object if they are owed money, so as long as you have done your year end and the client has paid everyone off before you start proceedings you shouldn't have any issues. Check out HMRCs and Companies House websites.....there's tons of info on there.
There are several things you need to ensure you have done.......
Try this as well as a bit of a handy hints list
I don't think accounts are needed in the year that the company is dissolved, not sure if it only applies if there are no profits showing though. Also as obvious as it may seem, the bank accounts need to be emptied or else remaining funds will get seized and a very expensive process follows to reclaim it!!
