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Leger


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Company ceased trading - dealing with final transactions
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Company I'm doing accounting for ceased trading on 30th June.  Just doing final transactions and obviously some transactions are in July and August.  eg bills paid monies received etc

Should I date these 30th June or leave them as they are?  I'm just thinking I will still have debtors and creditors outstanding if I do that.  



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John 

 

 

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Cheshire


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Hi John
So its a Limited? When is their usual year end?

Ive got one at the mo, ceased trading later September, but going to do final year end as at end of October as usual as have the final VAT to sort and invoices still lurking out there, Bank to shut down blur blur blur.


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 Joanne 

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Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

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Leger


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Morning Joanne

Yes, it's a Ltd Co, year end 31st March. I'm working on that as well, client wants me to get everything done before closing company so that there are no objections from HMRC. Everything is paid so there shouldn't be.



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John 

 

 

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J_asonR


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Hi John and Joanne,

I've dealt with a few closure's of companies in my previous role, and I'd normally close the company on the date that the bank account is closed, declaring on the accounts that trading stopped whenever the last invoice covers.

You can submit a relevant trading CT600 for the period to end of trade, and dormant on for the period after that to bank closure date.

Hopefully most invoices will be paid and liabilities should be paid by this point.

Hope that helps a bit!

Cheers, Jason.



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Jason.
Leger


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Hi Jason, this was my question.  Trade stopped on 30.6.16 but monies were received and bills paid after that date.  So should I list all these as 30.6.16 in order for the transactions to be included in the trading period. You can't file dormant accounts when there is activity on the bank account.



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John 

 

 

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J_asonR


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Hi John,

Sorry should have made that clearer. The trading accounts will be made up to the date that the bank closed(31.08.16 for example), but include a note on the first page to say that the company cease to trade on 30.06.16.

A trading CT600 will be made to 30.06.16 and a dormant one from 01.07.16 to 31.08.16. Sure, this period might include a few smaller expenses, but irrelevant as long as they're included in the trading period.


If you're not comfortable with that, I'd produce trading accounts, and a matching trading CT600 to include everything up to the date of bank closure(31.08.16 as my example above).



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Jason.
Leger


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Hi Jason

I'm sorry but I'm going to have to disagree with you about filing dormant accounts. You can't do that if there has been activity on the bank account. 

I've decided to run it to 31.8.16 to avoid the problem



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John 

 

 

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Cheshire


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Hi boys
Even bank charges can render the company as no longer dormant, never mind any other type of activity.

Mine is slightly different scenario in that usual year end is end of October/next VAT return is end of October and ceased trading late September so trying to get VAT done before its due and then paid and Ive told my client to ensure they close the Bank account before the end of October.

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Leger


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Hi Joanne

Presumably you can file before end of October?  Never had that situation before but its worth knowing.  



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Cheshire


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Hi John
Yes he VAT will be filed next week, although I am not sure of the exact timing of when HMRC add the VAT return info for the next quarter on to the online system. Might have to do a test of that the day after I do another customer's return just to find out. will let you know if I do (thats assuming I remember to test it out of course!)

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
J_asonR


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Just to clarify, I never stated to file dormant accounts. A trading set should be filed, with a note to say that the company ceased to trade on XXXX date. This is not filing dormant accounts.

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Jason.
Leger


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J_asonR wrote:

Just to clarify, I never stated to file dormant accounts. A trading set should be filed, with a note to say that the company ceased to trade on XXXX date. This is not filing dormant accounts.

 I apologise if I misunderstood you Jason, but you did say 

"You can submit a relevant trading CT600 for the period to end of trade, and dormant on for the period after that to bank closure date" and

"A trading CT600 will be made to 30.06.16 and a dormant one from 01.07.16 to 31.08.16."

 

 



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
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