Close Ltd and be taxed as a sole trader

Close Ltd and be taxed as a sole trader

Didn't find your answer?

Hello, 

I have a prospect client, he came to me with the following problem:

He set up a limited company a couple of months ago, registered for VAT and PAYE, informed HMRC that his company is active, but he hasn't opened a business bank account and all the money for his work (he is a truck driver) were put into his personal bank (and most of it is already gone). Last week he took another job (as an employee) and now he wants to close his Ltd. 

I was thinking of the least painful way of dealing with it and contacted my friend accountant (with over 20 years of experience) . His advice was to struck off Ltd, deregister from VAT and PAYE and just ask HMRC to issue a Tax Return and declare his income as self employed.

Have you had a similar case? How did sort it out?

Many thanks

Alex  

Replies (5)

Please login or register to join the discussion.

By petersaxton
28th Jan 2015 16:23

HMRC

I would send a letter to HMRC and ask them if it is acceptable.

If you don't he may have problems in the future

Thanks (0)
pic
By jndavs
28th Jan 2015 16:52

Dormant company?
In reality, the company may never have traded. Who did the customers think they were dealing with - you client or his company?

Thanks (0)
avatar
By wombat
28th Jan 2015 17:01

His company, I guess...

I think he issued invoices as a company, but not sure. I will have to ask. 

Thanks (0)
paddle steamer
By DJKL
28th Jan 2015 17:07

vat number on invoices issued?

If vat invoices issued they surely are in name of company as it was the only entity registered?

Thanks (0)
avatar
By wombat
28th Jan 2015 17:11

No Vat
Definitely, no vat charged as he only registered last week.

Thanks (0)