Background
2 Employee's. Both Directors. Claimed Furlough incime. No trading due to Covid other than Furgolough Salary. No hope of getting any income. Thinking of closing the company in June 2021.
Question
1: Do I need to submit final accounts for 1st May 2020 to 30TH Apr 2021 --- Keep in mind no income other than Furlough salary £7500 per director for the tax year. No government loan or any grant applied.
2: I have de-regestered for VAT.
3: June 2021 I will close the business bank account. Inform HMRC to close the PAYE.
4: Business Bank Account £4000. I could do one of two things. 1: Pay directors a dividend of £2000 each or Pay one of the directors £4000 salary so that they qualify for National Insurance credit.
5: Do I submit DS01 form to strike of the company. Do I need to get an accountant to submit nil final account as we have no tax liablity or any assetts or any creditors.
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Replies (4)
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If you are still in touch with the accountant who prepared the last set of accounts then ask them how to proceed since they will know your figures, otherwise just put the above in a letter to HMRC and submit the DS01.
Re 4) the dividend will depend on the reserves. There are other options.
I assume there are no creditors.
Update: - Accountant retired. So I have to do it myself or pay someone.
Salary:- One of the directors would have £1,700 salary paid for Apr21 to June 2021
Question
Is possible pay £4000 salary additional for month of June 2021. Total salary would be £6,700 above LEL limit.
Close the company.
Director will get one year NI credit. Get a p45 from the company. Declare the income in Self Assessment.
Close Bank account, Close PAYE inform HMRC. Complete DS01 and close the company.
Am I correct in my assumption. No final accounts required for Year May 2020 - Apr 2021. and beyond. No trading during this period.
ps: I am not an accountant. Just trying to manage life after Covid.