My freelance IT consultant ceased trading in May 2013. Now wishes to close down the company as soon as practical.
The company is solvent and has a year end of March 2014.
If I file a final CT return and client pays CT say 31 March 2014 (not strictly due until1 Jan 2015) so that company can be wound up as at 31 Mar 2014 HMRC will issue a refund of interest for paying CT early which then counts as taxable income in 2014-15. For which accounts may need to be filed for 2014-15!
Surely life cannot be this complicated?
Hopefully there is a simple answer to this little conundrum so that final accounts can be prepared and everything can be put to bed as at 31 Mar 2014?
CT liability is just under £2k.
Replies (4)
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You're right - life is not that complicated
File the final accounts and tax return and pay the tax. Have the company struck off. End of story.
As above. If the strike off
As above. If the strike off happens before HMRC process the refund for the interest, you lose out on it, no biggy. If they get it to you before strike off, you wouldn't be strung up for not declaring it as taxable income. Otherwise as I imagine you're thinking, you'd have an indefinite period of pay tax early, get interest, declare interest on tax return, pay tax early etc etc.
Interest minimal
A £2k tax liability won't produce a massive amount of interest so you really aren't losing out with an early dissolution. I would draw up final accounts with a 31.5.13 cessation date and submit accounts, ct600 and computations to HMRC as soon as practical. No need to produce accounts to 31.3.14.