Closing down the business - advice needed

[Iurie]

Good evening : ) 

Thought to ask if anyone could share some tips on how to close down a  business ? (  Ive been self employed for about 15 yrs ) .  I always did my accounts myself  but now just wondering if I need to hire a professional to do that for me ? or is it a straightforward  process ?   

Following the  instruction on  .gov seems to be an easy task https://www.gov.uk/stop-being-self-employed   however im planning to move abroad and what if HMRC decides later that they want or need  to check my accounts for the past 5-6 years and they just can't reach me ? 

Would it be better to send a copy / folder  with all the data to cover 2017 - 2022  to hmrc  even if they don't ask or how does it work ?

I don't really have any assets apart from an old petrol generator , bought few years ago as capital allowance .

Probably closing down on 6th of Apr 2022  would be easier to fill in the last tax year  

any advise will be appreciated

Many thanks !

 

[Part Timer]

As I always say, ring HMRC as they are very helpful. Probably hard getting hold of anyone currently but if you ring them midday rather than early or late you might have a better chance of speaking to someone.

 

[Pjj]

As part timer has said , and or speak to an accountant they should be able to point you in the right direction . 

 

[Iurie]

Thank you !  thats a good idea calling them 

 

[Part Timer]

Thank you !  thats a good idea calling them 

You might be able to "chat" on line and then keep the conversation if you have any problems down the line.

 

[Pjj]

I assume you would need to keep your last years trading accounts for the 7 year period the same as if your business was still running as well ???  

 

[Iurie]

I assume you would need to keep your last years trading accounts for the 7 year period the same as if your business was still running as well ???  

I will , definitely  -  however i always thought that 5 years is required by law and i did shred yr 6  every year ...  

 

[ched999uk]

I will , definitely  -  however i always thought that 5 years is required by law and i did shred yr 6  every year ...  

https://www.gov.uk/self-employed-records/how-long-to-keep-your-records seems to agree "You must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year."

Example: If you sent your 2019 to 2020 tax return online by 31 January 2021, you must keep your records until at least the end of January 2026.

That's good as I can shred more than I thought!!! Cheers

 

[Pjj]

https://www.gov.uk/self-employed-records/how-long-to-keep-your-records seems to agree "You must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year."

Example: If you sent your 2019 to 2020 tax return online by 31 January 2021, you must keep your records until at least the end of January 2026.

That's good as I can shred more than I thought!!! Cheers

Lol looks like I have far more shredding to do than you then ????? my wife does  all the accounts and paper  work and I have most of it for  the last 20 years she doesn’t like getting rid of it just in case ????

 

[Part Timer]

Lol looks like I have far more shredding to do than you then ????? my wife does  all the accounts and paper  work and I have most of it for  the last 20 years she doesn’t like getting rid of it just in case ????

Your Wife does the accounts for a business that turns over £200k+ a year ? A good Accountant would save you more than  he costs.

 

[Pjj]

Your Wife does the accounts for a business that turns over £200k+ a year ? A good Accountant would save you more than  he costs.

My wife does  the day to day paperwork and books the accountant works  out the final bits and bobs she has always done it ,she knows what we are earning far better than I do ????

 

[Part Timer]

My wife does  the day to day paperwork and books the accountant works  out the final bits and bobs she has always done it ,she knows what we are earning far better than I do ????

My Accountant stores rhe paperwork I give him and shreds everything that doesn't need to be kept by law.

I know what I make every month but find it's safer and easier for an Accountant to dot the i's and cross the t's for the end of year tax returns.

 

[Pjj]

My Accountant stores rhe paperwork I give him and shreds everything that doesn't need to be kept by law.

I know what I make every month but find it's safer and easier for an Accountant to dot the i's and cross the t's for the end of year tax returns.

The accountant oversees it all and makes sure everything is submitted etc but the wife is very proficient and is able to do the majority of it and she likes doing it , I have no interest in the paperwork and the financial stuff I enjoy getting new jobs , and being hands on doing the actual cleaning I could easily be office based but don’t  want that  Ime a practical person , I hate the paperwork side at the fire station and delegate  as much as I can to others there as well ???? Ime not motivated by money I couldn’t tell you what’s in the bank provided I can pay  the bills I don’t care , I do however enjoy quoting bigger and larger jobs just because it’s a bit different to the normal humdrum houses .  

 

[Part Timer]

The accountant oversees it all and makes sure everything is submitted etc but the wife is very proficient and is able to do the majority of it and she likes doing it , I have no interest in the paperwork and the financial stuff I enjoy getting new jobs , and being hands on doing the actual cleaning I could easily be office based but don’t  want that  Ime a practical person , I hate the paperwork side at the fire station and delegate  as much as I can to others there as well ???? Ime not motivated by money I couldn’t tell you what’s in the bank provided I can pay  the bills I don’t care , I do however enjoy quoting bigger and larger jobs just because it’s a bit different to the normal humdrum houses .  

I'm paranoid about paperwork and knowing where the business stands financially. I know last months P&L now. 2 days after end of year the Accountant has my paperwork with turnover, all costs itemised, list of debtors and creditors etc. The only thing I don't have is the end of year bank accounts. The Accountant then sorts out the technical capital expenditure tax implications etc and let's me know how much I owe them.

 

[Pjj]

I'm paranoid about paperwork and knowing where the business stands financially. I know last months P&L now. 2 days after end of year the Accountant has my paperwork with turnover, all costs itemised, list of debtors and creditors etc. The only thing I don't have is the end of year bank accounts. The Accountant then sorts out the technical capital expenditure tax implications etc and let's me know how much I owe them.

Like I say I have no interest in that side of the business I wouldn’t have a clue , what the wife doesn’t know or cannot do the accountant does I enjoy having my own business but could not do the paperwork it would make my head explode and stress me out to much , I do check the bank account to make sure our larger commercial accounts are up to date  and all paid up right but that’s my limit of interest , the school job have just paid up as well so that’s boosted the account a bit ???,maybe Ime naive but in my simplistic view I know what work we are doing weekly monthly etc compared  to the previous year so year on year it’s more so I know we should be ok all new work is price higher so earnings should increase , I prefer to only look into the accounts once a year ,I know if there was a problem the wife would soon be on to it so I would know pretty quickly . 

 

[Pjj]

I'm paranoid about paperwork and knowing where the business stands financially. I know last months P&L now. 2 days after end of year the Accountant has my paperwork with turnover, all costs itemised, list of debtors and creditors etc. The only thing I don't have is the end of year bank accounts. The Accountant then sorts out the technical capital expenditure tax implications etc and let's me know how much I owe them.

I think you are quite an academic person  that comes over in a lot of your posts Ime not hate it with a passion , when we go to see the accountant my wife does  most of the talking and explaining I just answer a few questions and she’s always says you haven’t got a clue about any of this have you ??? and I haven’t I cannot get up any enthusiasm to try and learn it either but we still are doing well so don’t see the need to alter anything .