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We can help you guide through the process for winding up a limited company or how to close a limited company easily & also helps in the closing a ltd company.\n\n\n\n\n\n\n

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going back to sole trader closing down a limited

Going back to

sole trader:

closing down a

limited company

it s an all too common story times were good

It’s an all-too-common story. Times were good, you had new clients coming out of

your ears, more work than you could handle and your bank account was

overflowing. You did the sensible thing and formed a limited company to make the

most of your earnings – clever you.

But then; disaster. Maybe your biggest client went belly-up, or a string of sexual

misadventures with a coworker’s spouse finally caught up with you. Your income

plummets, and suddenly the extra paperwork and Companies House filings just don’t seem

worth it – you pine for the days of sole tradership and finally, after much deliberation, you

decide to Dissolving a limited company

How do you do that, exactly?

Get everything squared away

Although you’ll go on conducting your business as asole trader your limited company, as a

legal entity, must have all its loose ends tidied away. This means settling any outstanding

bills, and collecting any owed invoices, and making sure you make provisions for any

running costs that may be incurred between now and when your company is legally

wound-up (for example, if you’re paying an accountant to finalize your last batch of returns

or employing some credit control services to round up those late payers).

The good news is that these can be treated as legitimate business expenses, and so can

offset your final tax bill.

What else?

Companies House

You will need to file form DS01 with Companies House in order to ‘strike off limited

company/dissolving a limited company’ your company. This can only be done after the

company has not been trading for 3 months.


If you are VAT Registered, you will need to inform HMRC of your intention to de-register by

completing a VAT 7 form. Once this form is received, HMRC will contact you with your de-

registration date. You must also complete a final VAT Return that takes into account things

such as leftover stock or any equipment your business owns.

Corporation Tax

You must inform HMRC that your company is no longer trading so they do not issue further

reminders for Corporation Tax.

paye scheme

PAYE Scheme

If you operate a PAYE Scheme HMRC will also need to be told that it is no longer in

operation, and it will need to be closed down.

Capital Gains

If you’re operating a limited company as a freelancer there’s a good probability your

equipment (laptop etc.) is owned by your company for tax reasons – if you take possession

of company equipment personally when your company is would up you may need to pay

Capital Gains tax on those items.

But wait…

Dissolving a limited company is, as you can see from the above, a bit of a hassle. There

are other considerations too – if you de-register from the Flat Rate VAT scheme, you cannot

re-register for a year. If the good times return and you decide to re-incorporate this could

mean you’re out of pocket.

If you think you might want to trade through your limited company again soon, you always

have the option of putting it “on hold”. Instead of informing HMRC that you intend to close

the limited company down you can make the company “dormant”. You will still have to file

certain tax returns, but they will be “nil returns”, meaning you just report a load of zeroes

to HMRC to show them you’re not trading.

You can work as a sole trader outside your limited company in the meantime, and return to

working through your limited company when it makes financial sense (although bear in

mind this will make your self-assessment rather more complicated).

winding up of llp in the easiest way. Venture Care can help you guide through the

procedure for the closure of your LLP quickly and easily.

contact us

Contact Us:

Head Office (India)

Venture Care

Sr.No-29, Ajikyatara, kalaniketan,

Dhankawadi, Near Rajshri Shahu


Pune, Maharashtra 411043 (IN)

Phone: (020)-65 3636 33

Branch Office (Netherlands)

Venture Care

Jonker Fransstraat 46,

3031 AV Rotterdam, (NL)

Phone:+31 614 575 275