Need to close limited company/file account/tax...help :)

bigstevex

I've got a limited company i setup in september last year, i was vat registered but i've just cancelled that, I never paid myself because i never enough in the business. There's currently £600 in the company account, no creditors apart from a vodafone contract which vodafone told me i can have transferred into my name. I have full and detailed accounts since i started, i don't owe any corporation tax as i never made over £10K gross or net profit, but i did get a letter a month or so ago with a big ~10 page document to fill in relating to tax, but i think i have a few months to file that too.

Anyway how do i go about closing down the company and do i need an accountant to file my accounts for me? They are very detailed already with profit/loss for every month and the year as a whole. I just want rid of it

Also how do I get that £600 out the account and into my pocket legally? Can i do a dividend payment? I havent done one yet.

Any help at all is appreciated

Pennywise

It sounds like you desperately need an accountant I'm afraid, despite the small figures. You've fallen into the classic trap of forming a limited company without realising the pitfalls and not researching it properly.

Firstly, there will probably be a corporation tax bill - the £10k threshold went a few years ago.

Secondly, Companies House and HMRC require accounts prepared in accordance with accounting standards and the Companies Act - the format is completely different from your detailed book-keeping records and if you send your book-keeping, it will be rejected without even being looked at. You can do these yourself if you have the time and inclination to research the internet as all the answers are there on Co House and HMRCs website, but given that you still thought there was a £10k profit threshold, I think you'd have to be a lot more thorough to get your accounts right as the rules for disclosures change almost every year.

Thirdly, you will have to complete and submit the corporation tax return. This means understanding the difference between how fixed assets (such as computers, equipment, websites, etc) are treated in the accounts as opposed to the different way they are treated for corporation tax purposes. You also have to think about how you are going to get any equipment etc out of the company - if it still owns anything once it is struck off, ownership passes to the Crown!

Re getting the money out of the company, again, your options are available freely via the internet if you do some research - if you search in forums like these and ukbusinessforums you'll find your answers, but the answer will involve preparing and submitting the proper paperwork to the relevant authorities.

It's a shame you didn't set up as a simple sole trader, because then you'd have none of these problems and you'd easily be able to fill in a few boxes on your personal self assessment tax return which is far easier and is less likely to need professional help.

bigstevex

I was a sole trader for a while but large wholesalers wouldn't touch me unless i was a ltd company and vat registered.

The company has no assets left, i've sold them off, computer/printer/desk is all there was.

Can anyone recommend an accountant in the North west? A nice friendly casual accountant will do I just want to drop all my accounts off and pay them to sort everything out now! I trust the £600 in the company account will be roughly enough to cover this?

With regards to corporation tax, i've messed that one up! All the info i ever read said about the 10000 lower margin, but as you say it doesn't exist anymore, just checked hmrc website!

bigstevex

anyone? i know they are odd questions but any help is appreciated