Tax Payments and Closing a Company - Quick Tips

Tax Payments and Closing a Company - Quick Tips

Some speedy advice on what to do with tax when a company is closing.

By Marcia Smith

Winding up your business

It goes without saying that when you receive a notice from HMRC to file a return, then you must do it. But if you are looking to wind up a company, you should notify HMRC about this immediately. This will ensure you are not filing returns unnecessarily.

HMRC will govern whether or not a corporation or company has to file back taxes, and will send out the relevant reminders to whoever is responsible for that company's tax affairs.

If your business is failing

Even if your business is failing, there are certain taxes that you need to pay. Officers and directors of failing companies are by and large not liable for the business’ debts, but there are exceptions that you should be aware of. If your business is failing or has failed then you must ensure that you pay both payroll taxes and withholding taxes in their entirety.

You must also pay any money claimed by employees like sickness, holiday pay and so on, as well as their final payslips. If you fail to do this then you run the risk of prosecution.