HowToCloseCompany

Industry guide

How to Close a Construction Company in the UK

Closing a construction limited company involves several industry-specific steps on top of the standard dissolution process. CIS deregistration, outstanding retention payments, plant hire agreements, and specialist insurance policies all need resolving before you can apply to Companies House for voluntary strike-off.

Deregister from the Construction Industry Scheme (CIS)

Notify HMRC that your company is ceasing to operate as a CIS contractor or subcontractor. Submit all outstanding CIS returns and ensure any deductions owed to or from subcontractors are settled. This is done through your HMRC online account or by calling the CIS helpline.

Settle all retention payments

Construction contracts commonly hold retention funds — typically 3–5% of contract value — until defects liability periods expire. Pursue any retention amounts owed to your company and pay any retentions you hold for others. Outstanding retentions can prevent a clean dissolution.

Terminate contracts and notify subcontractors

Issue formal written notice to all subcontractors that their contracts are being terminated. Review each contract for notice period requirements. Ensure all subcontractor payments, including CIS deductions, are reconciled and final invoices are settled.

Return or transfer plant, equipment, and hire agreements

Return any hired plant or equipment and settle outstanding hire purchase agreements. If you own plant outright, sell or transfer it to shareholders before dissolution. Any assets left in a dissolved company become Crown property.

Cancel specialist insurances and licences

Cancel public liability, employer's liability, and Contractors' All Risks (CAR) insurance policies. If your company holds a Gas Safe, NICEIC, or other accreditation, notify the relevant body. Cancel any CSCS card scheme registrations tied to the company.

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