Closing a LTD company surplus cash and assets

[996owner]

I may decide to close my LTD company next year. I've gone back to full time employment and keeping the company running (submitting books, filing confirmation statements etc ) is something I'll be glad to see the back of.

Small loan the business has will be paid off by the day I close (assuming I do)

The date I close will be mid financial year and the company may have around £7k (company will owe nothing) in its account along with £2500 worth of assets (mainly electronic test equipment) The assets are pretty much useless to anyone unless they are an analogue audio engineer who fixes specific equipment.

Will I need to submit a final set of books?
The chances of selling the equipment is pretty small and if I do sell them what happens to the surplus cash and potential £7k in the bank?


Thanks

[hairy v]

Make sure you withdraw all the cash or HMRC will have it.

[StevieBee]

You'll need to prepare and submit final accounts and settle any tax liabilities that are due by the end of the FY of when you shut the business down.

As for the £7k, unless you need it, I'd pay it into your pension. If you just pay it to yourself it will impact on your personal tax liability for the year.

For the equipment, I would have thought you could write them off as fully depreciated asset.

[MaxFromage]

It's best to speak to your accountant, but you can do a set of accounts up to the date you cease trading or to your normal year end. When completed on this basis, this will tell HMRC you don't have any future liabilities. Any other schemes can be shut down such as PAYE/VAT. With £7K left, you could declare (depending on your other income) £1K divi and the £6K left can be declared as capital in nature and will be covered by your CGT allowance. This can be done via an informal strike-off. Your accountant can explain in more detail.

[996owner]

Thanks