Closing Down a Business

Although registering a company or any other form of business in the UK can be exciting, it is hard to talk about it without mentioning the situation in which we decide to close it. Whatever the reason, at some point we may find ourselves forced to wind up our business.

We may also simply decide that we no longer want to continue the business - in that case too, there are many options when it comes to closing it down. Regardless of the form of business we run, closing it

in the UK is just as straightforward as registering it.

Closing an Ltd company

An Ltd company can be closed in two ways - one is to liquidate the company yourself, and the other is to use the help of a professional firm - such as Polaccount. Closing an Ltd company is a fairly simple and quick process, much like registering one, but by hiring a professional firm for the task we minimise the risk of mistakes.

To close an Ltd company, you need to make sure that your company meets the following conditions:

• The company has not sold any goods or services in the last three months

• The company has not changed its name in the last three months

• The entity is not currently in liquidation

• The company’s creditors have not started a Company Voluntary Arrangement (CVA) procedure

Failing to meet the above conditions does not entirely remove the option of closing the company, but in that case a different procedure applies.

The key element of closing an Ltd company is striking it off the Companies House register. To do this, you need to complete a form and send copies of it to all shareholders, creditors, employees and managers. All matters concerning employees must be settled, including insurance, wages, etc. The company’s assets should be distributed among the shareholders, otherwise they become the property of the Crown.

Closing a self-employed business (self-employment)

Ending self-employment involves many formalities, which differ from the formalities involved in closing an Ltd company. It is important to remember that a self-employed person who is in reality no longer trading, but has still not formally closed their business, remains obliged to submit tax returns to HMRC.

The procedure for deregistering self-employment requires an individual approach, which is why Polaccount will help you draw up a suitable financial plan and handle the administrative and tax formalities.