Are you planning to inform HMRC of a company strike off? Then you’re at the right place. Continue reading our detailed guide on how to inform HMRC of a company strike off.
If you are planning to strike your limited company off then you must inform HMRC & Companies house that your company is dormant. This can be done via sending them a letter or by phoning them you must give your 10 digit unique UTR (Unique Tax Reference) Number.
You must also inform all interested parties (share holders) within the business regarding the company strike off.
Continue reading for a full in-depth guide on company strike off process.
Company Strike Off for HMRC
A company strike off is the process where you inform the HMRC & Companies house to remove your business from the companies house register. There are 2 different types of company strike off:
- Voluntary strike off is when a director applies to dissolve the company.
- Compulsory striking off process is when another party starts a petition to have the companies / business to be struck off the list.
Compulsory Strike Off
A compulsory strike when another party petitions to have the company struck off the list. This typically happens when the company has failed to file accounts or annual statements.
Voluntary Strike Off
Voluntary strike off is when the director of the company directly applies for the company to be struck off the company’s house register.
How to remove your limited company from the Companies House register
The formal process to inform companies house you need to fill out a DS01 form. The form must be signed by majority share holder of the companies director.
You must also include final statutory accounts and a Company Tax Return to HMRC when submitting your form DS01 to companies house.
Before you apply to strike off a company
Before applying for a DS01 you must deal with any business assets such as closing any company bank accounts and transfer any domain names.
Withdrawing your application for strike off
In some cases your company is not eligible to be struck off. Your business might have become insolvent. You are able to withdraw you application if you end up changing your mind. You are able to do this via the companies house website.
After your company is dissolved
Once a company has become dissolved, it ceases to exist as an legal entity. All trading will stop and the companies name will be removed from companies house register. You will also no longer need to do any further filling.
Why Would a Company be Struck Off and Dissolved?
There are multiple reasons for a company to be struck off or dissolved.
Here are some examples:
- Company directory wanting to retire
- Lack of profitability
- Conflict between directors
- Company wasn’t successful
- Challenges facing the company
Can you Strike off a Company with Debts?
To be eligible to strike off your company, your business must be solvent before striking off application.
You need to have repaid all its outstanding debts and all money it owes including all of its creditors and any director loans.
How Long Does it Take to Strike off a Company?
When striking off a company it takes at least three months for a limited company to be struck off the companies house register.
Once the DS01 form has been submitted.
This is all assuming that your details on the forms have been summited correctly. In some cases the strike off process may take longer.
Is a Company Strike Off a Solution for an Insolvent Company?
No if your company is facing insolvency the cost of liquidating your business may be far too much.
If there are no assets within the business to fund the liquidation then a company strike off may not be the best solution for you. Feel free to contact us at Cangaf to if you wish for some guidance from our experienced business advisers.
If you are looking to strike your business from companies house and need further assistance with outstanding tax liabilities, company assets, corporation tax services and final accounts feel free to seek professional advice from our expert business consultants at Cangaf.
We will also file final accounts with companies house, prepare your final trading accounts and company tax return, stating that these will be your VAT Return ,final tax return & corporation tax. Additionally we will also inform HMRC that your company will be dissolved.
All you would then need to do is pay all your corporation tax, any tax liabilities (if you have made a loss in your final year you may be able to offset that against any profits from the previous year). This is known as ‘Terminal loss relief’ which you may be able to claim.
If there’s anything further you wish to know regarding this, look no further than Cangaf Ltd. Contact us today for a free, no-obligation quote, and let us help you with all your accountant needs!
