Closing down a limited company without an accountant

Closing a Limited Company Without an Accountant

Hi everyone,

About a year ago, I launched an ambitious limited company with the goal of breaking away from my IT job and pursuing my own venture. Unfortunately, due to personal commitments, I’ve decided to close it down. While I invested money to get the company started, I haven’t made any profits. I’ve filed a confirmation statement once but never submitted any accounts.

To dissolve the company, I know I need to apply for a strike-off using the government DS01 form and file my final accounts. However, I’m feeling a bit lost when it comes to preparing the accounts and where to enter the information. Ideally, I want to handle this myself without incurring any costs aside from the strike-off fee.

Do I need to file accounts with both Companies House and HMRC, or just HMRC? How should I go about doing this?

Here’s a breakdown of my finances:

  1. Total amount invested in the company: £4,940
  2. Total expenses on equipment, insurance, etc.: £4,927.46 (of which £2,054.51 were physical assets)
  3. Revenue from one completed job: £350 (withdrawn as repayment of my initial investment)
  4. Remaining balance withdrawn from the company account: £12.54 (also a repayment of my initial investment)

This is how it breaks down:

| What? | Amount | Direction (In/Out of Company) |
|—————————————-|————-|——————————-|
| Initial investment | £4,940 | In |
| Expenses (insurance, etc.) | (£2,842.95)| Out |
| Assets (equipment, etc.) | (£2,084.51)| Out |
| Revenue from job | £350 | In |
| Withdrawal for repayment of investment | (£362.54) | Out |
| TOTALS | £0 | |

Any guidance on where to allocate these amounts and how to make sure HMRC is aware these are my final filings would be incredibly helpful.

I’ve reached this page, but I’m unsure about what goes where: Link

Thank you in advance for your help!

1 Comment

  1. bdadmin

    Reply

    Closing down a limited company can seem complicated, especially without the guidance of an accountant, but it’s definitely manageable on your own. Here’s a straightforward breakdown of your situation and what you need to do:

    1. Filing Final Accounts

    Since you’ve not filed any accounts before, this will be your first and final set of accounts. You will need to prepare:

    • A balance sheet and a profit & loss account.
    • Given you’ve had minimal activity, the numbers should be simple, focusing mainly on the transactions you’ve outlined.

    Profit & Loss Account

    You should summarize your income and expenses. For your case, it will look like this:

    Income:
    – Job Payment: £350

    Expenses:
    – Insurance and other expenses: £2,842.95
    – Equipment: £2,084.51

    Net Profit/Loss:
    – Total Income: £350
    – Total Expenses: £4,927.46
    – Loss: £4,577.46 (This will be indicated as a negative figure in the accounts)

    Balance Sheet

    Your balance sheet will summarize the assets and liabilities:

    Assets:
    – Physical Assets (Equipment, etc.): £2,054.51

    Liabilities:
    – Bank Account: £0 (after your withdrawals are accounted)

    Equity:
    – Shareholder funds (initial investment): £4,940
    – Loss carried forward: £4,577.46

    Total Assets = Total Liabilities + Equity
    – This should balance out, showing that your assets minus your liabilities equal your shareholder funds.

    2. Filing with Companies House and HMRC

    • Companies House: You will need to file your final accounts with Companies House when you apply for the strike off using the DS01 form. You can submit these online or by post. There may be additional guidance available on the Companies House website.

    • HMRC: You’re required to inform HMRC regarding your company’s cessation of trading. You may have to submit your final Corporation Tax return (CT600) along with your accounts, even if there’s no corporation tax payable (due to the loss).

    3. Applying for Strike Off

    Once your accounts are prepared, you can fill out and submit the DS01 form online or via post. You will need to pay a strike-off fee (currently £10). Ensure you check the declared information on the form is accurate.

    4. Informing HMRC

    Don’t forget to notify HMRC that the company is closing. This can be done via writing to them or through their online portal, indicating that your company will not be continuing, which may direct them to your final accounts.

    Summary

    1. Prepare your final accounts (Profit & Loss and Balance Sheet).
    2. Submit the accounts to Companies House when you file the DS01.
    3. Notify HMRC of your company closure and file your final CT600 return.
    4. Complete the DS01 form and pay the fee for striking off.

    Since this involves potential nuances, especially with HMRC requirements, consider any further resources or guides directly from Companies House or HMRC’s official sites to ensure compliance. Good luck with your closure process!

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