Company Strike Off in Kent

Closing a company you no longer need

Voluntary strike-off removes a company from the register and brings it to an end. It is often used when a director retires, a project finishes or a business moves back to sole trading. It is designed for solvent companies with their affairs in order, and it needs some preparation. Applying too early, or leaving assets in the company, can cause real problems.

Is your company eligible?

You can usually apply for strike-off if, in the last 3 months, the company has not traded or sold off stock and has not changed its name, and it is not threatened with liquidation or subject to an agreement with creditors such as a CVA. GOV.UK sets out the conditions in its guide to striking off your company.

What needs to happen first

• Final accounts and Corporation Tax return up to the date trading stopped, with any tax paid.
• VAT deregistration and a final payroll, closing the PAYE scheme where relevant.
• Collecting money owed and paying suppliers, HMRC and other creditors.
• Distributing what remains to shareholders. Any assets left in the company when it is dissolved, including bank balances and future tax refunds, pass to the Crown.
• Closing the bank account once everything has cleared.

Applying for strike-off

1. The application is made on form DS01, signed by a majority of the directors.
2. A copy must be sent within 7 days to anyone who could be affected, including shareholders, creditors, employees, pension trustees and any directors who did not sign.
3. Companies House publishes a notice in The Gazette. If there are no objections within the two-month period, the company is struck off and a second notice confirms it.

Distributions and alternatives

How you take the remaining money out affects the tax you pay. Below a certain limit, a final distribution before strike-off can usually be treated as capital rather than income. Above it, a members' voluntary liquidation (MVL) is often the better route. An MVL must be carried out by a licensed insolvency practitioner. We do not act as insolvency practitioners, but we can explain the differences, prepare the figures and work alongside the practitioner you choose. If you are thinking about selling or retiring rather than simply closing, our Business Asset Disposal Relief page explains how that relief may apply. If you might want the company again later, keeping it as a dormant company is another option.

What we'll need from you

Up-to-date records to the date trading stopped, details of any assets, debts and loans (including your director's loan account), and a list of shareholders and creditors. If accounts are behind, we will deal with overdue filings first.

Closing companies in Kent

We help directors across Kent close companies properly, so there are no loose ends with HMRC or Companies House. Request a call back to talk about your plans.