How to inform HMRC of company strike off

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Are you planning to inform HMRC of a company strike off? Continue reading on our detail 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 number (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.

What is a company strike off?

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.

  1. Voluntary strike off is when a director applies to dissolve the company.
  2. Compulsory striking off process is when another party starts a petition to have the companies / business to be struck off the list.

What is a 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.

What is a Voluntary strike off?

Voluntary strike off is when the director of the company directly applies for the company to be struck off companies house register.

The costs of striking off a company

The cost of striking off your company is £10. You will need to also submit an application form DS01.

You can also go through a MVL process which is used to close down a solvent company which typically starts at £1,500.

As a company director there is various ways to dissolve a company.

If you need further assistance seek professional advice from our team at TaxBite.

How to inform HMRC of a company strike off

When notifying HMRC you are able to send them a letter informing them of your intentions of striking off process.

You can inform HMRC regarding your decision via phone call or letter.

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 cease 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:

Can you Strike off a Company with Debts?

To be eligible to striking 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.

What Happens to Directors When a Company is Dissolved?

Any directors can face sanctions including being disqualified from being a company director for the next 15 year or they can face serious prosecution.

Summary

If you are looking to strike your business from companies house and need further assistance with outstanding tax liabilities, company assets, corporation tax services, final accounts feel free to seek professional advice from our expert business consultants.

Get in touch with our team we can help throughout the entire process if you are looking to dissolve your company or file company voluntarily and strike off your company.

Done for you service

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. 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.

Get in touch today for a dissolution and companies house done for you service we will inform companies house on your behalf and take all the stress away.