Ltd company, end of contract. (was in P&P)

[jimmyd123]

It's been suggested it might be a good idea to ask in here.

Just wondered if anyone would be able to give me any advice to help with my current situation.

I'm currently contracting, and have been for the past couple of years. I have been working as a limited company, with me as the sole employee.
It looks like my contract is not going to be renewed. (I do have a perm job lined up already luckily.) The contract comes to an end on 31/03/09.
I was wondering what is the best way to wind the limited company down? Can I just pay myself all the money in the company account(including money saved for tax) as redundancy?

I haven't had a good look into it yet, but was hoping someone could start me off along the right lines.

Thanks,

James
Original thread - http://pistonheads.co.uk/gassing/topic.asp?h=0&amp...

[Eric Mc]

See my most recent reply to you P&P thread.

[jimmyd123]

Thanks for the advice, and helping me to know where to start.
There have definitely been transactions since my last set of accounts (I actually started getting paid this way in April 2007, not September).

The lady I spoke to at Companies House was very helpful. I'm making a start this week and will ask about the forms you mentioned.

P.S. I don't know how to close a thread, so I'll just let the other one slip away quietly.

[V8mate]

Can I just ask a clarifying question (based on the two threads)

If a Limited Company is closed down during its second year of operation - at a point between the start of the second year and when the first year's corporation tax falls due for payment - what steps will HMRC take to recover that tax?

Action against the director(s) in a personal capacity?

[Eric Mc]

The company MUST make a Corporation Tax return for any accounting periods in which it was generating income. Any Corporation Tax liabilities arising are due and payable within 9 months of the end of each accounting period.

If a company has ceased opetrating, the Revenue will block any attempts to have the company wound up, liquidated or struck off until any monies owed to it are cleared.

From what the OP has just said, he still needs to complete at least one more set of accounts before he can even consider closing the company down. To do that, he will almosr definitely need the services of an accountant. He says he has already used an accountant and my advice would be to retain their services until the company can be safely struck off. Even if the accounting firm he uses has been restructured (whatever that means) I am sure they are still in business and will have the ability to continue acting for their clients.

Trying to take on the admin of a limited comp[any without the assistance of a qualified professional is a recipe for trouble.

[V8mate]

Thanks for clarifying, Eric.

[jimmyd123]

Thank you both.

As much as I'd like to do it myself, I think I'll seek the help of my accountant again.

Thanks again.