Winding-Up Small Company

[accsvalue]

Director wishes to wind up small company of which he is 100% shareholder. The company has no liabilities apart from €20,000 owed to the director. The only asset is unsold stock of €15,000. Last accounts prepared to December 2012.

What is the simplest way of winding up the company? Can the director just take over the stock personally and write off the remaining €5,000 debt that he is owed by the company? Does the company have to prepare accounts and file corporation tax returns for the period from 1 January 2013 to date of cessation?

 

[Joe_90]

You have to do accounts to date of cessation and file a tax return. Cancel the tax number. You will have a VAT charge on the transfer of stock to the director to deal with.

Then write off the loan and apply for a letter of no objection from revenue put an ad in the paper and apply to have to company struck off.

Happy days!

 

[accsvalue]

Thanks. Could the company de-register for VAT first and then transfer the stock? Turnover never exceeded the €75,000 threshold for sale of goods.

 

[Joe_90]

You have a couple of issues. If you opted to register even though you were not at the required turnover then there is a 3 year review to ensure that you were not in a refund situation.
If on the date of cancellation you had stock or machinery that you recovered VAT on then there is VAT due on that.