When it comes to closing your business always checking with Accountants
Deciding to close your business down for good is never any easy decision to make but one that hundreds of directors and sole traders make each year. It may be that business is not long financially viable or perhaps circumstances have changed and running your own business is no longer the best solution for you and your family. Whatever the reason there are a few key steps that you need to take to ensure the process runs smoothly. One of the best ways to deal with a business closure is to use your accountancy firm both for advice and to deal with some of the legalities. If you are looking for an Accountants Cheltenham way then take a look at https://www.randall-payne.co.uk/ and see how they can help you with your business accountants and much more.
In order for your to voluntarily dissolve the company it must be solvent, if you are looking to close a business due to bankruptcy then you must take an alternative route. In order to finally close the business, you must make sure that you comply with a number of areas:
- In the three months before your application you must not trade with the company
- You can not have any formal agreements to pay back any of your creditors
- Your business must not be under threat of liquidation
- You must not change the company name in the three-month period
You should also make sure that you inform HMRC that you have plans to close the business and that you are officially no longer trading. Your accountant will also inform HMRC when they submit your final accounts that they will be the last accounts to be filed before the closure of the business. You will then be informed in the usual way the amount of corporation tax that is due.
Once this amount if known you should ensure that you pay the amount along with any other liabilities for VAT or PAYE and that you official close your payroll scheme down and issue your staff members with P45s. You should also inform all of your loan providers and lease agreements and end these in the appropriate was as well. If your staff members have been working with for more than two years you may be liable for redundancy payments, so you need to check this with a legal professional to ensure that you are meeting your obligations.