Winding up your company and corporation tax

Winding up your company and corporation tax

You need to know when the winding up process for your company has started – this can affect your Corporation Tax payment and Company Tax Return filing deadlines and requirements.

Winding up your company and corporation tax 

The winding up of your company for Corporation Tax purposes normally starts on the earliest of when:

  • your company goes into administration
  • your company’s shareholders pass a winding-up resolution to shut it down
  • a winding-up order is imposed on your company by the court; for example, following an application by an unpaid creditor such as HMRC, if you don’t pay your company’s Corporation (see separate section below)
  • a liquidator is appointed

Winding up and Corporation Tax accounting periods

At the start of your company being wound up, your current Corporation Tax accounting period comes to an end and a new accounting period begins. From that point on, your company’s accounting periods run for periods of 12 months until the winding up is complete.

If your company is in the process of being wound up, it’s still subject to Corporation Tax paying and filing requirements. For example, your company must continue to file a Company Tax Return and pay Corporation Tax on taxable profits arising from:

  • trading income and other income such as investment income
  • the sale of other goods or assets (chargeable gains) for example to pay off creditors

Your company will pay any Corporation Tax due during the winding-up period at the same rates as before the winding-up period started.

Winding up and control of the company

In certain winding-up situations a liquidator, or the Official Receiver, becomes the beneficial owner of your company. From this point on, company shareholders or directors have no further say in the running of the company including filing Company Tax Returns and paying Corporation Tax.

When this happens, your company’s Corporation Tax Office communicates with the Official Receiver or liquidator and can disclose information that would have been known by your company. For example, correspondence, Corporation Tax payment history, notes of interviews with company directors or other company officers.

In other winding-up situations such as administrative receivership or creditors’ voluntary arrangement, the company officers retain responsibility for filing Company Tax Returns and paying Corporation Tax.

 

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