Venture Care: closing down a limited company 2.Going back to sole trader closing down a limited | Page 3

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.