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In the UK it is remarkably easy and cheap to form a limited company. For less than £100, perhaps even less than £50, you can have a company formed in a matter of hours. This compares to the situation in many other EC countries where the costs can run into thousands and it can take weeks, if not months, to get a company registered.

But, if your business has come to the end of its life, either because you can’t rescue it or because you no longer want to keep it going, you will find that closing down a UK company can be far from simple.

Liquidation

The normal way to close down a company is by starting a process called “liquidation” or “winding up”. This is a legal process in which a liquidator is appointed to wind up the affairs of a company and at the end of the process the company ceases to exist. This process does not mean that all the creditors (those to whom the company owes money) will get paid.

There are basically three different types of liquidation:

  • Members’ Voluntary Liquidation: this is when the members (shareholders) of a company decide to put it into liquidation and there are enough assets to pay all the debts of the company. The members appoint and pay a liquidator themselves (or out of the assets of the company).
  • Creditors’ Voluntary Liquidation: this is when the shareholders decide to put the company into liquidation but there are not enough assets to pay all the debts of the company. The creditors appoint and pay a liquidator themselves (or out of the assets of the company if it has any).
  • Compulsory Liquidation: this is when a court makes a “winding-up” order for the company to be wound up, usually on the petition of someone who is owed money by the company, although the directors may also apply for a winding up order, usually because neither they nor the shareholders are able or willing to pay the fees – which can be high – for a voluntary liquidation. The court appoints and pays for a liquidator but can recover all or some of that from the sale of any assets.

If your company is unable to pay its debts it is said to be insolvent and should cease trading or the directors may become liable for the debts. If you suspect that the company is insolvent you must take professional advice and may need to liquidate the company, although it may be possible for licensed insolvency practitioner or a specialist business rescue advisor to negotiate arrangements with those to whom money is owed to keep the business trading. Note that being unable to repay shareholders does not make a company insolvent. They knew when they invested they could lose their money and are at the very bottom of the list of creditors who would only get paid after everyone else had been paid 100%.

So, take appropriate advice. However, there is an alternative to liquidation which I want to discuss next.

Dissolution

This is a simpler and cheaper method and is ideal for closing down companies which have no debts. However it can sometimes be used to close down companies which are insolvent – though this cannot be guaranteed.
In a typical case of a solvent company the steps would be as follows:

  1. The company should cease trading and carry out no further transactions, except those which are necessary to wind it up.
  2. Anyone that the company owes money to should be paid; otherwise they may object to the company being dissolved in this way. The company bank account should not be emptied or closed until all company debts have been paid. Any loans to or from any company directors or shareholders should be repaid.
  3. If any vehicles or equipment have been bought on any form of hire purchase, leasing or finance agreement, then the finance company should be contacted to establish the options for ending the agreement early.
  4. The company must apply to HM Revenue & Customs to (HMRC) have its VAT registration cancelled, using form “VAT 7” A final VAT return will need to be completed, and there may be a VAT payment due.
  5. If the company employs staff they should be issued notice and a final payroll run for them (bearing in mind that they may have redundancy payments due to them) and P45s issued. At some point the company will need to make a final P35 return of payroll information to HMRC.
  6. Any of the directors and the company secretary may wish to resign, though at least one director should remain in place to deal with the closure. Remaining as an unpaid director of the company should not affect their own personal taxes in any way.
  7. A final set of accounts will need to be prepared, and submitted to HMRC. However this is unlikely to be possible immediately after the company stops trading as there will be further expenses so a letter should be sent to the tax office informing them that the company has stopped trading, has no further taxable income, and will apply for dissolution in due course. Mention that final accounts will be forwarded in due course. If you do not do this then HMRC may object to the company being closed down.
  8. Any corporation tax should be paid from the company bank account. The company generally has 9 months from the close of business to pay this tax, but the company cannot be closed down until it is paid.
  9. Any money or equipment left in the company after all these expenses have been met should be paid out to the shareholders in proportion to their shareholdings. It may be worthwhile for the company to apply to HMRC to have such payments treated under Extra Statutory Concession C16. This treats all such final payments as capital gains instead of dividends and may result in less tax being due.

Once 3 months have passed since the business ceased trading the directors (or a majority of them) can make an application to Companies House to have the company struck off. You can get full details of how to do this from the Companies House website. There is a £10 fee and you can download all the forms free of charge.

If the company is insolvent then it still may be possible to use this process, however to do so you will need to get approval from all those to whom the company owes money by writing to them with a notice of intention to have the company dissolved. You have to confirm you have done this before Companies House will process the dissolution and if it later is proven that you didn’t write to everyone you could be guilty of perjury.

You probably will need advice on what to say in the letter but in general you need to explain that the company is insolvent, cannot pay its bills, and cannot continue to trade. Tell them that the directors want to dissolve the company but that if creditors object the company will have to go into liquidation and as there are no funds to pay for a voluntary liquidation one of them will have to petition the courts at their own cost.

Be aware however that even if trade creditors don’t object it is possible that HMRC will object if substantial sums of tax (Corporation, PAYE/NI or VAT) are due unless they can agree a repayment schedule with the shareholders or directors taking on personal liability. In this case, get professional advice before signing anything.

353 Responses to “How To Close Down Your Limited Company”

  1. I recently moved into my first premises after trading from home for 8 years. I have been duped into signing an electricity supply agreement with a company called BES. From what I have discovered this company now they have control of the supply will empty my bank account as they are clearly complete rouges but operate within current legislation I am in discussion with ofgen and the ombusman but frankly do not hold out must hope. I need to get away from this company before they make me insolvent. I am a limited company and currently have assets via stock and money in a bank account. I also have some debt in the form of a lease for 1 year on the property and card machine. Corporation tax is due but I can just about cover that. If all else fails in getting away from this electricity supplier I am considering winding up the company, but need to protect what cash and stock assets I have so that I can trade under a different name. Any advice

  2. Pete says:

    To close a company down, it must not have traded within the last three months.

    How do you define “traded”?

    My company has not had any business for nearly a year; that is, no income other than bank interest and VAT refunds have been received.

    The company has paid fees and taxes and that’s it.

  3. John-B says:

    I have a limited company, which I want to close down. It has not traded for over twenty months, owes no tax and has been deregistered for vat. I haven’t paid myself any remuneration either in the past twenty months. Accounts had been prepared by accountant and sent to Companies House as required. Corporation tax return submitted on time and has been acknowledged. There is no corporation tax liability. Before I send the form DS01, I believe I have to close the company’s bank account. The company has two shareholders, myself as the director (60%) and the company’s secretary (40%). Profit of £18148 was retained in the company as at the year end and there are no monthly bank charges on the account and we don’t owe the accountant any more money. My question is, what happens to the money (profit) left in company’s bank account? Do I divide it between the secretary and myself in 40/60 and are there any more taxes etc to pay now or later?
    Many thanks for your help

  4. James says:

    Please can anyone help? I am a director of a company who has a business partner who does not want to do anything with the company, I have put all the money into the company and want to carry on, I offered to buy him out last year only for him to keep changing is mind. He as threatend to close the company down, so I opened another company and put the new product under the new company, I would like to be a sole trader, can anyone give me advice on this subject.

  5. James Green says:

    It isn’t quite the same in Jersey Jacko but you should have a registered agent or lawyer/fiduciary looking after your company there. Ask them what the options and costs are. From experience if the company is solvent then it isn’t too difficult to apply for it to be wound up but there can be tax implications if you are not yourself resident in Jersey so I’m reluctant to be more specific without full details.

  6. David says:

    Hi,

    I’m a director of a software company whose revenue has been falling; if we continue trading at current levels, there will be a 40k shortfall (assuming current salaries are maintained) my March 31st 2013.

    I have suggested that I step down as a director and also as an employee in order that the Managing Director can continue running the company with a view to securing new revenues in this time. I may complete some work for thr company as a consultant of he needs me to do some work.

    We have no debt and have paid VAT and corporation tax up until the latest invoice points.

    Should I be concerned about anything else during this period?

    Thanks

    David

  7. Jacko_17 says:

    Very interesting information. I have a company in Jersey is there anything similar I can do there?

  8. Mr R.NEWCOME says:

    hi
    I have a limited company that i wish to get rid of.
    Initially I formed the company in 2007 so as I could purchase property to do up and then sell on. This was fine untill 2008 when the property market collapsed as I had borrowed monies from the bank to get more than 1 property going the arrangement I had with the bank was on a buy,modernise and sell basis. no one was buying at the price I was prepared to sell at, and the bank finally called in there loan which meant I had to sell 1 of the houses at a loss nevertheless I still have 1 property which I am letting out.
    The house is free of any charges other than a loan i took out for personal use which cleared the debt I had on it.
    My problem now is the house is still in my companies name although i financed it with my own money. I intend to keep the rental going i just want to know how much it would cost to get rid of the limited company and who to approach
    Thankyou ron

  9. James Green says:

    That seems fine so long as at the end of the 3 months the company has no debts then just go through the procedure set out here. However just one point. I’m sure you wouldn’t do this but if someone were to set a company up just to do one job then close down to avoid any claims for bad workmanship or get out of any guarantee which was offered then this could be seen as fraudulent trading.

  10. James Green says:

    Hi Mrs H. For what you say you should simply apply to have the company dissolved as outlined in this post.

  11. James Green says:

    John, it sounds as if HMRC have just issued an assessment (estimate) which if you don’t appeal it by providing your accounts and tax return become due and they can sue you for it. Don’t think that because it is a limited liability company that you can ignore it as HMRC could claim that you as director have been wrongfully trading and come after you. You have to get your accounts completed, your tax returns up to date, and either pay them in full or come to terms to pay over time. Alternatively you or HMRC could put the company into liquidation – but that will cost you at least £3,000 to £4,000.

  12. James Green says:

    Roe – Only the company acting through its director or directors. Creditors would have to apply to wind the company up in a court/

  13. James Green says:

    Amanda – just follow the steps in the post.

  14. James Green says:

    Hi Vivienne, I’m surprised that HMRC haven’t been chasing you up. They get details of all new companies and will have sent a couple of forms to you one to say you haven’t started trading but asking for full details of the director or directors (tax and national insurance numbers) and another if you have started trading asking for the same info. You can be fined for not completing these. I’m not sure from what you say whether or not you have actually made any sales but you seem to have made some purchases so your company is not dormant. It may not have made any profit but is isn’t dormant and you should have registered with HMRC.

    However, there would seem to be nothing to stop you applying to Companies House to dissolve the company as explained in this post. However HMRC might object and/or might decide to fine you. It’s the chance you take. You could of course just stop filing anything with Companies House who will strike it of at some point but if you do that you are in fact committing a criminal offence (not filing report and accounts).

  15. dee says:

    Hi, just a quick one, is it ok to set up a company just for 3 months and dissolve it. cos the contract is a 3 month contract.
    Thank you

  16. Mrs H says:

    Hi.
    I set up a limited company July 2011. I have not traded at all. I informed HMRC that I am not yet trading. I wish to close down the company. What would be my best option? I have no debts and I am the only director. I have put a small amount into the business to buy equipment etc. Please could you advise.

  17. John says:

    Hi
    Wondering if you can help me? I opened a ltd company 3 years ago and had a accountant that was “”suppose” to be doing my books etc.. Cut long story short i have 2 years worh of accounts to do and i have a corparation tax of £6500 due from hmrc .. As i do not know alot about accountancy i was wondering how do the calculate that i have to pay that amount?. And can i pay it up or have to pay out right? And once that is paid can i take myself off as director and re assign someone else as i am going back to a full time job but my family want to take it over? Thanks for your time

  18. Roe says:

    Who can dissolve a company – is it only the company itself or is it creditors? Also can a active trading company dissolve?

  19. Amanda says:

    I registered a ltd company name with view to starting my own business however the sale of my house fell through and that was how i was going to finance the start up…..i have now got a job so am not going to carry on with the business idea…..the company has never traded so how do i resolve it?

  20. Vivienne says:

    Hi James Green,
    My name is Vivienne. I had some questions about this as companies house isn’t very clear about this. I have a registered limited company with no debts and I am the only shareholder for the company and currently I am filing dormant accounts, I haven’t made any money from the company either and as no money has been made I am not registered with HMRC can I just dissolve the company, if so what would be involved are there usually legal costs involved? Or do I just fill out the companies house form? Also the only money that ended in the account from my pocket was to pay bank monthly charges and cover website fees. I would really appreciate the advise. Thanks

  21. Adi Natarajan says:

    I setup a limited company last feb 2012 and did a contract job for 6 weeks after that i couldn’t find a reasonable contract but now got a permanant job. I am the director and only person working for this company. I have now issued p45 and paid uptodate NI and Taxes relating to payroll. Please advise me on how to close this company. I’ve no dues and left with hardly any money which triggered my decision to go on a permanent job

    Thanks
    Adi

  22. James Green says:

    It’s hard to say Johnnie as a lot will depend on timing etc. If the HMRC debt was able to be dealt with could the company be traded out of the problem? In any event I suggest that your friend gets in touch with me for a chat through the options. We offer a free 30 minute consultation so drop me an email james (at) jamesgreenandco.co.uk.

  23. JohnnieS says:

    Hi James,

    A friend of mine has a limited company and currently has an outstanding corporation tax bill of nearly £8,000. He has never had issues with paying taxes previously and has run into difficulties recently, mainly because his biggest creditor went into adminstration, owing him nearly £10,000. The company does not owe any other people but he just cannot continue and the business is now insolvent. Do you think he will be able to liquidate the company or will HMRC object and come after him personally for the money?

  24. James Green says:

    Hi Gary, well it certainly looks like you are between a rock and a hard place! There isn’t an easy or quick answer to your questions and in all honesty we shouldn’t be discussing specifics in a public forum.

    However I will say that you really don’t have the option to dissolve your company because it would seem that HMRC are going to play hardball. It is interesting that they are threatening to “sell your debt” which is something they couldn’t do when they had “preferred creditor” status and indeed there is serious doubts that they can legally do this. However unless and until someone takes this through the courts – and if you can’t pay your tax bill how can you afford the tens of thousands a court case would cost – we have to live with this.

    Another part of the problem is that since the full implementation of the 2006 Companies Act it is now much easier for creditors to take action to hold company directors personally responsible for the debts of a company by claiming that the directors were guilty of “wrongful trading”. One of the key indicators of wrongful trading – being unable to pay your bills on time – is the inability to pay your tax and/or national insurance liabilities on time. The fact that HMRC have given you time to pay for the past 2 or 3 years does tend to suggest that your company is indeed insolvent and you are guilty of wrongful trading.

    However, don’t despair (yet) because there are options available to you which could yet save the situation.

    I suggest that you have a look at the business rescue section of my professional site http://www.carraghyn.com/what-we-do/business-rescue where you will get a more detailed overview of this subject and can access a downloadable information sheet. Have a look and then send me an email to james.green [at] Carraghyn.com to arrange a free 30 minute consultation (but I don’t clock-watch) when I can get more information from you and explain your options in more detail.

  25. Gary says:

    Hi James,

    I run my own consultancy business which is a limited company, I have been trading since 2005. Over the past three years I have have always struggled to pay my Corporation tax on the due date 1st Jan and have subsequently arranged with HMRC for it to be paid in installments and always completed payments prior to the next corporation tax is due. This year is no different my original Corp Tax Bill was around £8000 and i have started with installments but struggled to meet the agreed amounts. I fell behind the agreed amounts and re-negotiated and at present I have around £4000 outstanding which I have agreed to pay in 4 x £1000 installments, I get paid a retainer and commission and the commission has gone down due to the current financial uncertainty. HMRC have said that this is my last chance and should I struggle to meet these payments they will sell my debt to a dent collection agency. I also owe around £1150 in a VAT payment and I am contemplating liquidating the company. In total I would owe HMRC around £5150 plus I have a bank loan for around 12k which I have guaranteed as well ad an overdraft of £4k and a company credit card of around £4700. Basically the company has no assets and my accountant gives myself and wife (director) a salary of arou d £8000 each a year and the rest of our income is dividends. I appreciate I would have to talk to the bank and arrange repayment with them for the loan. What would you suggest is the best way forward in these circumstances and possible outcomes with HMRC. As my accountant states my company is a lifestyle company enabling me to be as tax efficient as possible.

  26. James Green says:

    Ben, you cannot ignore the bank in the process but what you need to do is get their agreement that they will not object to the dissolution on the basis that you agree to honour the guarantee on agreed terms. Strictly speaking if the company has some cash available you should split it up between all creditors – including the bank – but if you left the bank out of the equation (with their agreement) then other creditors would be unable to complain as you are paying them more that way.

  27. Ben Higgins says:

    Hi. One of my companies has run out of cash. I have ceased trading about 2 months ago with this company. However i took a loan with the bank about 2 years ago which still has a balance. This loan had a directors guarantee attached to it in my name. Can i still go through the dissolution process, will i now need to go through the process but ignore the bank loan in the company dissolution or do i need to include them in the process as well. The bank have written to me personally an i need to put an agreement in place to pay them back the money over a set period of time.

    I am also a director of another company, that has been trading for 12 years and does ok.

    Any help would be gratefully received. Thanks

  28. James Green says:

    Hi Nyshah. You say your partner was a director but then go on to talk about “we”. Were you also a director or company secretary? Were either or both of you shareholders in the company? You can check the Companies House website http://www.companieshouse.gov.uk to see if the form TM01 or TM02 has been filed. If not contact Companies House and ask them to advise you how best to file a form yourself. Note that even resigning as a director may not remove any liabilities for bad decisions or wrongfull trading and neither will it get a director release from any Directors’ Guarantees.

  29. nyshah says:

    hi my partner was a director of a limited company we left after 2 months and asked to be free from the company is there a way i can check our names have been taken off this company as they are in a lot of debt and dont want this coming back to us. also how do i go about closing the limited company if its still in our names?

  30. James Green says:

    If you put money into a limited company and that company used it as a deposit to buy a property then I presume that there is a mortgage also. The property is indeed an asset of the company and the company would have to dispose of it (perhaps transfer it to you) before it would be allowed to dissolve. If your company was struck off by the Registrar of Companies – typically for failing to send in accounts or annual returns – then indeed the assets of the company pass to the Crown. They can be reclaimed by restoring the company but indeed the assets go to the Crown.

  31. M S Abdalla says:

    I have got a small limited company. It did not bring any profits at all for more than 2 years. I deposited some money into it from my dividends coming from another limited company. That money was used as a deposit to buy a property overseas. The question, would that property ttreated as an asset? I heard if you dissolve your company you lose your assests to the Crown. What could I do?

  32. James Green says:

    Hi Bill, without knowing about your personal circumstances I can’t comment on Entrepreneurs’ Relief excapt to say you would appear to be able to take advantage of it so long as you distribute the cash balance correctly. Your accountant can advise you of the best way and you just tell HMRC about it in due course. Once you have distributed the cash then simply applying for dissolution should be sufficient. If you or your accountant have any doubts then contact your tax office and see what they say.

  33. Bill Whitcombe says:

    I would like to retire and close down my limited company. It has no debtors, a significant cash balance (over £40000) and no other assets. Will it be better to dissolve it or to liquidate it and how can I benefit from Entrepreneurs’ Relief?

  34. James Green says:

    Hi Iain, and thanks for taking time to comment. Frankly I’m not quite sure why you have chosen to comment on this particular post as there are others which might be more appropriate. You are right – in any DIY situation you must proceed with caution. You should see my attempts at putting up shelves! However that doesn’t mean that business owners can’t take on more responsibility for accounting and taxation – or anything else – so long as they get appropriate guidance. To my mind there are far too many “professionals” who take advantage of clients and end up exploiting their access. I’m thinking here of so called consultants who are more concerned with piling up the chargeable hours “advising” clients rather than teaching the clients how to be more self sufficent. A number of years ago I came across a situation where an accountant who was invited to dinner in the clients’ home put his time and taxi fares on his next bill. That said, many of the people reading this post are in such a mess that they can’t afford to call in an insolvency practitioner but if they follow the guidance then they may be able to close their companies down with minimal fuss and expense.

  35. James Green says:

    Hi Matt – sorry for the delay but I’ve been struggling with some IT issues. Any money the company owes you as a shareholder is irrelevant. Shares are risk capital. If it owes you as a director or employee then yes you can write that off. Alternatively as director send yourself a letter (as a creditor) saying you intend to dissolve the company and ask for confirmation that you won’t object.

  36. James Green says:

    Ed, I’ve been having some problems with my server and had to migrate everything to new hardware and as a result some things have not been working correctly – basically the wrong backup was used – so I’m a bit behind answering questions. Also I’m a bit late getting my D-I-Y dissolution kit ready for download but hope to do so this weekend. It isn’t free but at £19.95 I hope you can afford it. It will give you everything you need.

  37. James Green says:

    Debbie, so long as you and your brother don’t object then the company can be dissolved. As directors you will need to send yourselves a letter stating you want to dissolve the company and give yourselves the opportunity to object. Silly I know but legally you are separate from the company. As for being a sole trader I can’t see why you should get any more or any less help from the government.

  38. James Green says:

    Susan – I agree that your ex-accountant is being rather short sighted. From what you say he seems to still be billing you – what work is that for? If you haven’t traded for three years and you have told him you can’t pay him I would have thought he would have stopped working. If he has any of your company records then by law he must let you have these back but he is under no obligation to provide you with any actual accounts he may have prepared or give you or another accountant his working papers.

  39. James Green says:

    Hi Damien – if your company has no other debts apart from the one to the bank then you can take the voluntary dissolution route detailed here but only if the bank don’t object. As explained, you need to write to the bank and tell them you have stopped trading and as you don’t have the money to go through a formal insolvency procedure you want to dissolve the company. Point out if they object then they will need to commence winding up at their own cost. I suspect they will try to get you to take responsibility for the debt if they haven’t already done so. Remember that if you gave a director’s guarantee they can come after you anyway.

  40. James Green says:

    Matthew – like Chris you need some individual advice. Have a look at this website and get in contact to see if they can help. The initial interview is free.

  41. James Green says:

    Chris – you need some individual advice. Have a look at this website and get in contact to see if they can help. The initial interview is free.

  42. James Green says:

    Gareth – I think you are in a pretty complex position here and really need to talk this through and possibly get some professional advice. Have a look at this website

  43. Iain Rankin says:

    I don’t think I’ve ever posted a reply to a blog before but, being alerted to this article by a client, I feel compelled to comment.

    While the info contained herein is informative and well intentioned, I urge extreme caution to a DIY approach in dealing with legal and taxation matters. Just because you CAN submit your own accounts or represent yourself to HMRC does not mean that you should.

    1. I have had many clients come to me over the years who have made an honest mistake in their accounts, replicated year on year, which has ended up costing them thousands (and sometimes tens of thousands) of pounds that we, as an accountancy firm, would have spotted easily and corrected.

    1. The taxman is only human (honest!). HMRC Inspectors have targets and, rightly or wrongly, if you don’t have an experienced tax adviser batting for you in a tax or VAT enquiry, they will see that taxpayer as the softer target to the one who has.

    In short people, get some professional advice. Sure, there are good and bad accountants out there but GOOD and timely business and tax advice will more than pay for itself. And, to put my money where my mouth is, if anyone here wants an entirely FREE hour’s advice, you can find me through our website.

    Iain Rankin
    Director, TaxKings Limited

  44. Matthew Kyle says:

    I am the director and major shareholder of a ltd company that has existed for many years, but has not traded during this soon to be ended, financial year.
    In previous years I was using my personal money to pay for things. This was not paid back to me by the company so I ended up with being owed a substantial amount by the company. There are no other creditors – tax has all been paid and I’ve de-registered for VAT.

    Last year’s accounts show a loss. Balance sheet shows assets of a small amount in the bank, a small amount of fixed assets (computers), but a very much larger amount owed to the director (me). Even after using the money in the bank to pay part of the loan and transfering the computers to me for another part, the company is still left owing me a sizable amount.

    Problem – How to close down the company.

    The company is not trading so is technically insolvant. This appears to prevent my using the voluntary strike off and dissolution approach at Companies House. Anyway I’d prefer to avoid using this approach since it would show me as director of an insolvant company.

    However, if I write off the the amount that the company owes me, my understanding is that this will show up in the company accounts as income and thus a profit for the year. Would the company end up paying tax? Also, does that mean I’m still trading and thus inelligible for voluntary strike off?

    Do I just wait for Companies House to strike me off?

  45. Chris says:

    Hi James

    I’ve run a Ltd business for 20 years.. always had good turnover approx £350k pa but the last 3 years due to the recession I’ve seen turn over drop 30%..residential customers slow paying my invoices , some even although I have contracts.. call my bluff and won’t pay final payments and I’ve had commercial customers go bust before I get paid… despite this I’ve carried on but now due to the recession and loss of bussiness I,m struggling with 40K owed to merchants .. nothing to the banks..or tax.. I’ve just got tired of working 7 days a week .. and having to absorb all the costs and being treated like a criminal by HMRC ,, because i may have failed to send in some paparwork with “Nil ” return….taking bad payers to court is a waste of time..as i always win but the debtors plead poverty and the courts accept their offer of £5 per month..
    I feel it’s time to stop juggling and to wind things up…. but owing the merchants over £40K worries me..I can’t pay it off if .. I written to them advising them of my financial dificulties

    Chris

  46. Matt says:

    I have a ltd company which I want to close down. It has not traded for over a year, owes no tax and has been deregistered for vat. I haven’t paid myself any renumeration either.

    Unfortunately, on paper (ie in the accounts) it owes money to me as director/shareholder. Can I write off the debt so that I can close the company without being insolvent?

  47. ed says:

    hello
    where do i get the advice as to what to put into the letter to creditors if i need to disolve the company. the company or my self have no money for advice it is a ltd company
    please help

  48. Hi

    I wonder if you can help. I am a director with my brother of a small pet service company which is limited, but we are now struggling, I would like to dissolution, there are no outstanding debts owed to anyone, just the set up fee which, we put into the company ourselves, I understand this will be lost (£18k). Could i do a dissolution on this company?

    My next question is if I wanted to set up again as a sole trader, how would this effect me and would I get more help from the government as a sole trader?

    thankyou.

    Regards
    Debbie

  49. Susan Reeman says:

    Please can anyone help? I have been trying to close a Limited Company for several years but have had problems getting certain information from the accountant. To cut a very long story short, I applied to strike off the company with a DS01, as advised by a liquidation expert. My Company hasn’t traded in at least 3 years. The only creditor is the accountant and he has now put a stop on the company being struck off. This is going to get us nowhere. I have never denied that I owe him money but there is no earthly point in him continuing to bill me for work I can’t currently pay for and so never getting the company closed. Without final accounts I am completely stuck.
    Any advice would be more than welcome.

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