End of Business FAQs
That depends on a number of factors, including whether you think you will be continuing in another form of business, returning to a permanent full-time job, or taking a sabbatical!
If it is your intention to return to business at some point in the future we would advise keeping your business alive but taking no income, or (in the case of a company) paying yourself off (i.e. terminating the payroll and taking a P45 from your company). We can then apply to have the business’s status changed to ‘dormant’ where it can stay until you are ready to use it again.
A. In that case we would give full advice on winding up the business in the most tax-efficient manner, and we would take steps to prepare final returns for the business. This is painless, inexpensive and avoids you incurring any costs associated with keeping the business alive.