Changing back to Sole Trader

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Hi all, 

I currently trade as a Ltd Company but I want to go back to self employed. Since covid i'm just not making anywhere near enough to warrant staying Ltd.

I can strike off voluntarily as there is nothing outstanding. 

My main query is, can I continue to trade as my business name (i.e My name T/A business name) just minus the LTD element as a self employed person or do I need to change the company name/social media etc and completely stop trading under the business name I've had from the start (2 years before the company turned LTD) to be able to strike off voluntarily?

I don't want HMRC to consider me as still trading if i'm using my social media that I've had since before I turned LTD and built up when I was registered as self employed but not sure if this even counts?

Thanks!

Replies (5)

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By rmillaree
06th Jun 2024 13:26

you need to set up new acount for every single contact you deal buisness with - or at minimum you need to say that from such a date i will be trading as sole trader and please update your records to reflect that fact - most companies will probably ask you to setup new acounts.

One you appy to dissolve compoany and that porgresses it does not exist and what was owned by yhe company is thereafter owned by the crown - so be careful about anything linked to company name - eg website registration / phone contract / etc etc etc - you wouldnt wnat to have that closed down if you forgot to update !

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Replying to rmillaree:
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By zoew94
06th Jun 2024 13:28

Thanks for responding! I only have 2 accounts with a wholesaler and with Royal Mail and they are both registered to myself personally (i.e Name T/A business) as I never updated them when I changed to become LTD so that should all be okay.

No website, no other contracts etc. Just the bank stuff to sort.

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Replying to zoew94:
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By Paul Crowley
06th Jun 2024 13:39

Sounds like the company did have any genuine expenses to claim.
If the mobile phone is not a company mobile, then the company should not have been claiming it as an expense.
Best to draw a line under the past and get things sorted correctly in the self employment.

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Replying to Paul Crowley:
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By zoew94
06th Jun 2024 13:44

Hi Paul, thanks for responding.

I've not claimed any mobiles etc as expenses as I've always used my personal mobile. Not sure where the confusion has come from :)

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Replying to zoew94:
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By Paul Crowley
06th Jun 2024 13:52

Maybe have a chat with an accountant sometime.
It the company had a mobile phone contract then it could have claimed tax relief, even if you were also using it for personal calls.
You may find that an accountant's fee is worth paying to get best advice on tax efficiency.
Did your company not reimburse you for expenses?

If the Wholesaler and Royal mail were billing you, not the company then they were not company costs.

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