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Dissolution of company

Do we have to wait three month to start winding up procedure

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We have a few IT contractors that have moved from contract to employment.  

Do we have to wait three months before we can start the winding up procedure as it will take another two months for companies house to close down the company. 

 

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By Wanderer
31st Oct 2019 15:13

You can start but if you are referring to a DS01 you musn't make the application to Companies House until the initial 3 months has passed.
http://www.legislation.gov.uk/ukpga/2006/46/section/1004

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RLI
By lionofludesch
31st Oct 2019 16:03

Yes - three months after trading ceases.

What's your rush ?

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Replying to lionofludesch:
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By taxwizard
31st Oct 2019 17:15

It will take five months from now to close the company and personally don't like things open.

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Replying to taxwizard:
RLI
By lionofludesch
31st Oct 2019 17:22

Well, them's the rules.

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By Matrix
01st Nov 2019 00:49

You don’t say whether a formal liquidation is required but I have done two windings up with no liquidation this year and did everything when it was ready then got the client to sign the DS01 and pay £10 and they went off to do whatever they did next and I kept it in my in tray with a calendar reminder to file in 2-3 months.

The good news is that CH don’t need a wet signature, so it made it a bit easier.

I have a few contractors who will need formal liquidations but not in a rush and remember 5 months or so means a new tax year.

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Replying to Matrix:
By JCresswellTax
01st Nov 2019 09:16

You may be in a rush if they decide to scrap ER in the budget (whenever that may be) as has been hinted at.

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Replying to JCresswellTax:
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By Matrix
01st Nov 2019 09:28

Thanks, my contractors don’t know what they are doing yet.

Yes that would be unfortunate but I don’t see why the OP’s clients have to wait for submission of the DS01 to claim ER.

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Lisa Thomas
By Insolvency Practitioner
01st Nov 2019 10:20

I think it's to allow creditors the opportunity to object to the process.

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By johngroganjga
01st Nov 2019 11:46

Don’t you need time after the cessation of trade to prepare the companies’ accounts and CT returns and for them to pay their corporation tax, and for your fee for doing that work to be paid?

As others have said, why all the rush?

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Replying to johngroganjga:
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By taxwizard
01st Nov 2019 16:30

Actually the contractor finished his contractor four months ago and was looking for another contract or job. One he found a job we extended the accounting period and filed the Corporation Tax Return for the long period. All fees were upto date at that stage.

I guess its no big deal but do like having open items. There is no formal liquidation required and we can wait go online and file the DS01 when the three months period is up in January.

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Replying to taxwizard:
RLI
By lionofludesch
01st Nov 2019 16:56

taxwizard wrote:

Actually the contractor finished his contractor four months ago and was looking for another contract or job. One he found a job we extended the accounting period and filed the Corporation Tax Return for the long period. All fees were upto date at that stage.

I guess its no big deal but do like having open items. There is no formal liquidation required and we can wait go online and file the DS01 when the three months period is up in January.

Couple of points spring to mind.

1. The CT period ended when he ceased trading, not necessarily the date to which you made up the accounts. It's a moot point whether he was trading by looking for work.

2. Arguably, he's not been trading for four months.

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Replying to lionofludesch:
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By taxwizard
01st Nov 2019 17:41

Yes it is debatable if he did cease trading as he was looking for work and was still on the payroll until the date he found employment.

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