Need some info on winding up VAT reg Limited Company

Rockee

I need some info on winding up our VAT reg Limited Company, as I have gone back into employment and I plan to do some existing work on a self employed basis. So, need some advice/info on the procedures, what you are not allowed to do, pitfalls and any costs involved etc...
Cheers
Rockee

raddy59

Close the company - contact companies house and tell them the company is no longer required. I think it costs £10 since the closure has to go in the London Gazette.
VAT - contact the VAT - you will have to fill in a final return, but no real hassle.

WHA

You need to submit final accounts, corporation tax returns, payroll returns, etc to HM Revenue & Customs before applying to Companies House to have it struck off- they will simply object to it being struck off if there are any outstanding issues at all.

Also, you need to think carefully about any money in the bank or other assets the company owns, such as equipment, computers, stock, etc. Once struck off, all the company assets become property of the Crown, so you have to sell all physical items at a realistic market value (presumably back to yourself) and close the bank account. Of course, any money that you take out of the company bank account, or sell assets at an undervalue, has to be treated as dividends, wages or a capital distribution, all of which have formalities and tax consequences. You can't just take everything out of the company, ignore tax and hope for the best!

If the company is insolvent, i.e. it owes creditors, yourself as director loan, bank loans or overdrafts, etc., that the company cannot afford to pay off from its asset value, then you can't follow the informal £10 striking off procedure and the company will need to be formally liquidated - you can do this by appointing an insolvency practitioner, the Crown can appoint the official receiver or any creditor can apply for winding up.

At the end of the day, if it has little money, a few low value assets, and no debts, you should have no problems with the informal striking off procedure, but you really need professional advice if there is a lot of money in the bank, there are assets worth a fair bit of money, or there are debts that can't be met (including directors loan account).

WHA

raddy59 wrote:

Close the company - contact companies house and tell them the company is no longer required. I think it costs £10 since the closure has to go in the London Gazette.
VAT - contact the VAT - you will have to fill in a final return, but no real hassle.

On that final VAT return, you have to pay output vat on the current value of stocks and equipment unless the amount of VAT is below their current deminimis limit (check their website - VAT deregistration information is quite clear and detailed)