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DSO1 - do I need to file end of year accounts?

We owe nothing other than a personal guaranteed bank overdraft, paid VAT and made no profit

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I want to file a DS01

We have some stock and a couple of computers can we keep these if so how?

We owe nothing to HMRC and don't have any creditors.

We have a personally guaranteed bank overdraft.

We have made no profit this year.

Questions:

1) Can we divide the stock (approx £2000 value) and computers between shareholders, if so how and do we do this before or after we file?

2) As we have made no profit do we have to file end of year accounts?  I was told not to as this is an unnecessary expense.

Thanks

Replies (5)

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By Duggimon
07th Dec 2021 11:08

You say you have an overdraft but no creditors, an overdraft is a creditor. Do you mean an overdraft facility or do you owe the bank money?

I would say if you want to get the closing down of the company right you need some sort of a balance sheet, you don't need to file accounts but I would definitely expect you still to prepare some to some extent.

I could just answer your questions but this definitely sounds like one of those posts where you're not asking a bunch of other questions that you do need the answers to, and I can't give you chapter and verse on all that.

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By johnt27
07th Dec 2021 11:20

Simple answer to your headline question is yes, but that comes with a list of caveats as long as my arm. That ignores your supplementary questions and the huge gaping holes in the info provided.

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RLI
By lionofludesch
07th Dec 2021 11:22

You might know that you don't owe HMRC money but how will HMRC know that ?

You're going to have to satisfy them that there is no debt or there's a risk that they'll object to you striking off the company.

But you (probably) won't need to file at Companies House.

You could just do nothing and let Companies House strike the company off for non-filing but there's a risk to that. You could be fined as directors for not filing and you still have the problem that HMRC might object to the strike-off.

As regards the stock and computers, why not buy them ? It'll reduce the overdraft you've guaranteed so buying them might not cost you anything. Depends on the size of the overdraft, obviously.

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paddle steamer
By DJKL
07th Dec 2021 11:33

I would first deregister for vat, that possibly will mean no vat payable upon stock and other assets given the indicated stock value. (depends upon computer values)

After that selling these to shareholders might be a clever idea, use money towards bank O/D if there is a bank O/D.

https://www.gov.uk/vat-registration/cancel-registration

I also would prepare accounts and tax comps to check, given adjustments re stock/plant on their disposal, that there is no CT liability.

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Replying to DJKL:
RLI
By lionofludesch
07th Dec 2021 11:42

DJKL wrote:

After that selling these to shareholders might be a clever idea....

Thanks - but I also like your idea of deregistering first.

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