Accountant Advice If Possible

[asht]

Hi

My limited company didn’t do as well as I would have liked during its first year and I am thinking of marking the company as dormant and changing to a sole trader.

I have recently submitted my CT600 to HMRC and paid the corporation tax that was due. On the CT600 the business has liabilities of £104.

My first query is, hypothetically tomorrow I commence as a sole trader. Am I correct in assuming I will need to submit another CT600 from year end until tomorrow? During this time the business hasn’t traded it has only cleared its liabilities.

secondly, the funds in the business account - I assume as I have already paid VAT then I can move the balance into a personal bank account that will be used for sole trader purposes or ask my current provider to change it into a personal account?

Thank you in advance.

Ash

[ian_roberts]

@asht

the funds in the business account - I assume as I have already paid VAT then I can move the balance into a personal bank account that will be used for sole trader purposes or ask my current provider to change it into a personal account?

I’m not an accountant so don’t take this as gospel but it seems to me that this money still belongs to the limited company rather than to you (unless there’s an outstanding director’s loan), so presumably you’d have to take it out as PAYE or dividends in the normal way and pay the resulting personal tax on your next SA return.