Need help re no longer trading & Director on PAYE

Didn't find your answer?

Hi,

My wife and I have a small business that will be stopping trading very shortly. We are both Directors, one of us has 100% shareholding and receives a nominal monthly salary via PAYE. The other does not take a salary.

We will be disposing of all assets through sale where possible, i.e. we have a van no longer needed or where sale not possible via recycling/waste. We are planning to move the company either Dormant status & provide annual non-trading accounts and return. I understand we will need to stop the PAYE scheme, however I'm not sure if this means providing a P45 or not and what we need to do with regards to HMRC.

Any guidance or advice would be hugely appreciated.

Thanks

Replies (5)

Please login or register to join the discussion.

avatar
By David Ex
19th Jan 2024 17:07

You need an accountant.

https://find.icaew.com/

Other professional bodies are available.

https://www.accountingweb.co.uk/any-answers/how-to-use-any-answers

“If you intend to plan a course of action based on what you read in here, you should instead be taking professional advice.”

“They are not here to provide free accounting advice.”

Thanks (1)
avatar
By FactChecker
19th Jan 2024 18:49

Echoing David's post overall, but FWIW:

* "I understand we will need to stop the PAYE scheme, however I'm not sure if this means providing a P45 or not and what we need to do with regards to HMRC"
Why not ask whoever has been operating your payroll and keeping your scheme compliant with HMRC?
[You don't *need* to stop the scheme but will continue to have arduous liabilities, for which you sound unprepared, if you do not.]

* Why are you "planning to move the company to Dormant status & provide annual non-trading accounts and return"?
An accountant can advise you in the light of your specific objectives (but retaining those liabilities for no obvious benefit would appear to be a curious decision).

I'm not looking for answers, just nudging you towards seeking professional advice.

Thanks (1)
Replying to FactChecker:
avatar
By streetname3
19th Jan 2024 22:18

We have quite a lot of IP registered designs and copyright that would be preferable to leave in the ltd company name, hence decision to move to dormant status rather than voluntary liquidation/request to strike off.

Re payroll I have been operating this myself as recommended to do so by a local HR/Payroll provider as there is just the one individual on it.

I have seeked the answers via our accountant but wanted to get wider views as there is not always just one way to do things.

Thanks (0)
Replying to streetname3:
avatar
By FactChecker
19th Jan 2024 22:48

OK, when I suggested "asking whoever has been operating your payroll and keeping your scheme compliant with HMRC" ... the same suggestion applies with regard to your "local HR/Payroll provider" who was happy to make recommendations previously.

I'm not being unfriendly or deliberately obtuse, but there are so many things that a professional payroller will know (and can either advise you about or do for you) vs. the likelihood of you making decisions based on an incomplete understanding of the rules and your options.

For a start, there are not just rules pertaining to how you process payroll when you pay someone ... but also of what/when to report via RTI any interruptions to your regular processing or indeed the final cessation thereof.
There are also several aspects to consider before deciding to cease Payroll - ranging from the handling of any outstanding BiKs or Pension contributions or whatever.
Basically there are costs (or at least resources) consumed in keeping it open despite not paying anyone and costs associate with 'winding it up' ... so what you need is to arrive at is a decision on whether or not you wish to close the Payroll (based on a proper understanding of the issues) - and this in itself should be a fairly minor decision to be made *after* you've sorted out your overall plan.

And that's what appears to be missing currently. You are making assumptions (may be correct may be not) about how to achieve a whole bunch of inter-related issues of importance to you - and for that you should be talking to an accountant.

Thanks (1)
Replying to streetname3:
Stepurhan
By stepurhan
20th Jan 2024 20:16

streetname3 wrote:

I have seeked the answers via our accountant but wanted to get wider views as there is not always just one way to do things.


A good accountant will give the most tax-efficient option (based on detailed knowledge of your specific circumstances) but tell you other options with their effects as well.

So what did your accountant recommend? A second opinion here will only really be helpful if it builds off the first opinion from your paid adviser who knows all the facts. If you're unable to provide that first opinion, then most members here will draw a fairly obvious conclusion.

Thanks (3)