Closing a Business

What ever the reason, illnesss, lack of interest or the business not doing to well, there may come a time when you need to close down your business.

When you close your business, you will need to inform various people and organisations of your decision, and the timescales involved. Depending on the size and nature of the business, and your status, eg sole trader, limited company, partnership, this could involve quite a lot of planning and organisation.

To find out more about the necessary statutory procedures and form filling to resolve any outstanding tax and National Insurance contributions (NIC's) matters, visit the Inland Revenue website.
www.inland revenuew.com.

You may need to inform Companies House you are closing down the business.
For more information visit the Companies House website.

If you have employees, you will have obligations to safeguard their rights, finalise their pay and deductions, and issue their P45 form. You may also be able to offer them help in coping with the challenges arising from losing their job.

You may also have creditors, with a claim on any assets remaining in the business, and suppliers who need to be informed of your intentions. You will also need to inform your existing customers of the closure, collecting any outstanding payments due from them so you can finalise your accounts for tax purposes.

Back to top