Closing your limited company properly is critical — missing HMRC obligations can result in fines, delayed dissolution, or personal liability for directors. This checklist covers all HMRC requirements for solvent company closure via strike-off (DS01) in 2026.
Important 2026 Changes:
- From 1 April 2026, the free HMRC/Companies House online filing service closed. You now need commercial software, an agent, or paper forms to file CT600
- From 18 November 2025, directors must complete identity verification with Companies House to file DS01
- Business Asset Disposal Relief rate increased to 18% from April 2026 (but NOT available for strike-off — only for formal liquidation/MVL)
Phase 1: Before You Apply for Strike-Off (DS01)
1. Confirm Your Company Is Eligible for Strike-Off
- Company has stopped trading in the last 3 months
- No outstanding debts or legal actions
- No changes to company name/structure in last 3 months
- All shareholders agree to close the company
- Director has completed ID verification with Companies House
If your company has debts, strike-off is not allowed. You must use Creditors' Voluntary Liquidation (CVL) instead.
2. Cease Trading and Notify Relevant Parties
- Set a formal cease trading date
- Notify all shareholders, creditors, employees, and pension trustees within 7 days of submitting DS01
- Notify any directors who did not sign the DS01 form
Phase 2: Close HMRC Tax Obligations
3. File Final Corporation Tax Return (CT600)
| Task | Deadline |
|---|---|
| Prepare final statutory accounts (mark as "final trading accounts") | Within 12 months of accounting period end |
| File final CT600 with HMRC (mark as "final return") | Within 12 months of accounting period end |
| Pay all outstanding Corporation Tax | Before DS01 submission |
| Use commercial software/agent/paper form (online service closed 31 Mar 2026) | Required from Apr 2026 |
Terminal Loss Relief: If your company made losses in the final 12 months of trading, you can carry them back against profits from the previous 3 years.
4. Close Your PAYE Scheme (If You Had Employees)
- Submit final FPS (Full Payment Submission) with these indicators ticked:
- "Indicator this is the final submission because scheme ceased"
- "Date scheme ceased"
- Submit final EPS (Employment Payment Summary) if applicable
- Pay all final wages, redundancy payments, and outstanding NI/PAYE
- Tell HMRC the company has stopped employing people
5. Deregister for VAT (If Registered)
| Method | When to Use |
|---|---|
| Online (via VAT account) | Standard case — business structure unchanged |
| Form VAT7 by post | Changed business structure, sold business, VAT group dissolution |
- Check taxable turnover is below £88,000 (2025/26 threshold)
- Select deregistration date and submit request
- File final VAT return covering period up to cancellation date (within 30 days)
- Pay any outstanding VAT due
- Stop charging VAT and remove VAT number from invoices/website
6. Check for Outstanding HMRC Repayments
- Ensure no outstanding tax repayment requests (DS01 will block receipt after dissolution)
- If repayment is due after DS01 submission, complete DS02 to suspend strike-off until repaid
Phase 3: Handle Assets and Tax Implications
7. Distribute Company Assets to Shareholders
- Distribute all assets before strike-off (anything left goes to Crown as bona vacantia)
- If assets > £25,000: treated as income → Income Tax applies
- If assets ≤ £25,000: may qualify for Capital Gains Tax treatment
8. Consider Capital Gains Tax Implications
| Situation | Tax Treatment |
|---|---|
| Assets ≤ £25,000 + strike-off | CGT rates (10%/20%) |
| Assets > £25,000 + strike-off | Income Tax rates |
| Formal liquidation (MVL) + 5%+ shareholding + 2 years ownership | Business Asset Disposal Relief (18% from Apr 2026) |
BADR is NOT available for strike-off (DS01). It requires formal liquidation (MVL).
Claim BADR deadline: 1st anniversary of 31 January following the tax year of disposal.
Phase 4: After DS01 Submission
9. Wait for Gazette Notices
- First Gazette notice published (Companies House announces strike-off)
- Wait 2 months for objections period
- Second Gazette notice published (company officially dissolved)
10. Keep Records for the Required Period
| Record Type | Retention Period |
|---|---|
| General accounting documents (invoices, bank statements, receipts) | 6 years from strike-off |
| Employer liability insurance, employee records | 7 years from strike-off |
| VAT records (even after deregistration) | 6 years |
| DS01 confirmation from Companies House | Keep permanently |
Quick Timeline Summary
| Step | When |
|---|---|
| Cease trading | At least 3 months before DS01 |
| Notify creditors/employees/shareholders | Within 7 days of DS01 |
| File final CT600 + pay Corp Tax | Before DS01 submission |
| File final VAT return | Within 30 days of deregistration |
| Submit final FPS/EPS | On cease employment date |
| Wait for dissolution | 3+ months after DS01 |
Common Mistakes That Delay Closure
- Outstanding debts — Strike-off rejected if creditors exist
- Missing final FPS marker — PAYE scheme stays open indefinitely
- Not using software for CT600 — Free online service closed 31 Mar 2026
- Assets left in company — Goes to Crown; must restore company to recover
- Claiming BADR on strike-off — Not eligible; requires MVL