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How much do you charge for closing down a company

Simple company with one employee, one asset and less than 25K in bank account

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I have a few IT contractor companies closing down mainly due to the changes next year.

All are one employee, maybe one laptop and less than 25K in the bank account.   Most are not registered for VAT.

Do you charge and if so how much ?

 

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By johngroganjga
09th Sep 2019 12:48

Charge for what? Drafting the DS01 for signature when they have emptied the bank account?

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Replying to johngroganjga:
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By Tom 7000
11th Sep 2019 11:21

Preparing the final set of accounts, closing down vat paye etc and all the dissolution work... I imagine

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By ireallyshouldknowthisbut
09th Sep 2019 13:02

I do it as part of our regular fee with the final set of accounts.

its not really any extra work our end.

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Replying to ireallyshouldknowthisbut:
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By leicsred
09th Sep 2019 13:17

ireallyshouldknowthisbut wrote:

I do it as part of our regular fee with the final set of accounts.

its not really any extra work our end.

Same here

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By Mr_awol
09th Sep 2019 13:29

Probably nothing, including it in the final set of accounts as others have suggested. If there has been any work to consider/advise on the closure of the company, then it would normally come to less than £150.

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RLI
By lionofludesch
09th Sep 2019 15:01

I charge my time costs - which generally is not a great deal.

There's not that much work, really.

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By JCresswellTax
09th Sep 2019 15:30

Are you advising on the most tax efficient way to distribute the final reserves?

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By marks
09th Sep 2019 23:09

We charge £300 + VAT for straight forward wind up of limited companies with net assets less than £25k as you have to deal with

1. Closing any PAYE scheme
2. Dealing with any final VAT returns and deregistering them for VAT
3. Advising the most tax efficient way to get any assets out of the company
4. Dealing with the actual wind up process of the company
5. Notifying all interested parties including HMRC

Never had anyone baulk at the fee as clients just want the process taken off their hands and make sure everything that needs to be done is done.

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By JCresswellTax
10th Sep 2019 09:42

yeah this is where I was going with my (unanswered) question above. We charge a similar fee which seems reasonable and clients are happy with. Especially justified if tax planning is involved re the final reserves (no matter how simple this may be it is still planning work).

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Replying to marks:
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By Sheepy306
10th Sep 2019 11:53

Yep, just charged a similar fee for the same process. It’s a fairly nominal fee but gives client peace of mind that it’s all taken care of.

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By AdShawBPR
11th Sep 2019 10:24

It might not take long but, as has been said, there are various things to consider, including VAT registration, PAYE schemes, ER, etc. so £350 is what I would usually ask for and have never been pushed back on. This seems like good value to me and to the client.

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By Peter Bromiley
11th Sep 2019 10:37

We generally charge a flat fee based on expected time costs.

Tax planning advice on getting the cash out;
VAT deregistration;
PAYE registration;
Form DS01 (assuming a simple winding up);
Chasing for the signedDS01/cheque;
Making sure HMRC notified that business has ceased. etc.

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By cfield
14th Sep 2019 20:17

Depends on how creative you can be on the tax front!

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