Route 1 — Voluntary strike-off (most small companies)
For a solvent company with modest or no reserves, voluntary strike-off using form DS01 (£33 online) is the standard route. The company must not have, in the last 3 months: traded, sold stock, or changed its name — and must not be threatened with liquidation or bound by creditor arrangements. Once accepted, Companies House advertises it in the Gazette and strikes it off after two months if no one objects.
Before you apply — the checklist
- Settle all debts and collect everything owed to the company
- Submit final accounts and a Company Tax Return to HMRC and pay any final Corporation Tax
- Close the PAYE scheme and deregister for VAT
- Distribute remaining assets to shareholders and empty the bank account — anything left when the company is dissolved passes to the Crown (bona vacantia)
- Tell HMRC and any other interested parties the company is closing
Getting the money out before dissolution — and in the right form — is where the tax is won or lost, so plan it before filing anything.
Route 2 — Members' Voluntary Liquidation (larger reserves)
If the company holds significant cash or assets, a Members’ Voluntary Liquidation (MVL) — a formal solvent liquidation run by a licensed insolvency practitioner — can let shareholders take the funds as capital rather than income. With Business Asset Disposal Relief the rate can be as low as 10%, which on a large balance saves far more than the MVL costs. It needs a professional to administer, so weigh the fee against the tax saved.
Route 3 — Insolvent company
A company that can’t pay its debts can’t just be struck off. It normally needs a Creditors’ Voluntary Liquidation via an insolvency practitioner. Once insolvency is on the horizon, directors’ duties shift to protecting creditors — continuing to trade, or paying yourself ahead of them, can bring personal liability and disqualification. Get advice early rather than late.
Close it properly, keep the tax right
For a solvent company we prepare the final accounts and tax return, make sure profits come out tax-efficiently, and handle the strike-off — and point you to an MVL if your reserves justify it. Call 0114 327 1480 before you start; the sequence matters.