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Cessation of trading date

Dear members

What date will be considerd as a day when company stopped trading: the day when the company did its last sale(received last payment) or the day when its last employee was laid off and PAYE was closed? The company has already stoped making sales, however there are still 2 employees that have to work 1-2 extra months after they got the notice as per their terms of contract. They're working to close company's website, archive all the paperwork, clean the office etc. 

What date should be mentioned in last set of accounts and CT return?

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13th Feb 2018 13:59

Usually it's the day that it actually ceases trading.

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim80565

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13th Feb 2018 15:00

In that case can cease trading=last receipt/last work for client?

Can a company be considered as the one that ceased trading even if it has to keep it's last workers for 6 more weeks and pay office fees for last 2 month(as it has to give at least 2 month notice to terminate office rent)? Though the company doesn't accept or look for any new client, contracts?

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13th Feb 2018 15:20

It's the day it last does work or makes its last sale.

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to lionofludesch
13th Feb 2018 15:37

Thanks.
So if company's accounting year eded 30 January, last sale was sometime in December, however employees will be laid off, PAYE closed, telephone line cut etc sometime by end of March, there will be no need to submit 2 sets of CT returns and 2 sets of accounts?

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to UshatPoev
14th Feb 2018 10:21

Just accrue any outstanding contacted wages or liabilities etc into the last accounts.

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