clownbeater started this topic @ 12:32 on 17/11/2006
I've been running a fairly rubbish IT software development contracting outfit at the moment as a Limited company (for less than a year) but it's just too much hassle. Therefore I'm starting up as a Sole Trader just doing on site support and emergency call out stuff.
Couple of questions:
1. Is there anything special I need to do to dissolve a Limited other than file the end of year accounts, pay any outstanding PAYE/corp tax and file the forms, tell companies house and close the bank account drawing the final amount to the shareholders?
2. Do I still need to register as self-employed or register the business in any way as I'm already registered as "requiring a tax return". I'll open another account for business affairs. Especially, do I need to register a business name?
Just to add: I am currently the accountant for both companies as well as the primary shareholder / trader.
RE: Moving from Limited to Sole Trader
James Smith | 17/11/2006 01:34 PM
For one, I was going to say – well you have a limited company speak to your accountant! Given you are an accountant you shouldn’t really need any help with (1) and will already be aware of all the tax implications and tax planning opportunities etc. Nothing has changed in the last few years on this front. If you are close to the year suggest you think about business asset taper relief on winding up which might be attractive but the rest is quite old hat so it should be just the same as in your training.
Suggest you do brush up however on the goodwill/transfer of assets rules as there is no automatic relief of this and you should really do the CG34 etc etc for transfer of assets to a related party. Probably worth tapping up any friends you have in practice to look at this if you are unsure.
As for (2) you will need to register for NI contributions with HMRC but that is about it. As a sole trader there is no registration of a "business name", by which I assume you mean the trading name you use for your business.
hope this helps.
Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
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