If you're not using the company you can either close it completely, or leave it ticking over as "dormant". If there's a chance you may use it again then it's an idea to keep it open, that way you avoid the costs and admin of closing down only to then set it up again.

A dormant company still has to file accounts and tax returns, but the costs would be reduced each year because you wouldn't need full trading accounts, payroll, VAT etc.

The cost for running a dormant company will be a 70% discount of your current package price and will include the following services:

  • Preparation and submission of the year-end accounts

  • Preparation and submission of the corporation tax return

  • Preparation and submission of the nil payroll submissions

  • Preparation and submission of the P11D

  • Preparation of company confirmation statement

Extras

  • Preparation and submission of nil VAT returns - included with the Operate & Grow packages

  • Your self-assessment tax return would be a £99 one off extra

Regarding closing the company, it’s a relatively straightforward process, although it does take time. The first step is to ensure all money is collected/paid and then close the company bank accounts, transferring any money to a non-interest bearing personal account – this will later be used to pay any final corporation tax liability.

The bank closure date will then be the final accounts date, and we will extend/shorten the next accounting period to then.

Final accounts are prepared, and any final tax liabilities are established. This tax will then need to be paid to HMRC straight away. When we have confirmed that all tax has been paid, we will apply to Companies House for striking off where they will advertise the intentions of closing the company in the London Gazette for 3 months before finally dissolving the company.

Any money left within the company (that was transferred to the other bank account but not used to pay tax) will either be a final dividend or a capital distribution and we will take a look at ensuring the most tax efficient approach is taken with this.

To find out more about our closure services, please do get in touch with your accountant who will be more than happy to discuss this further.

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