Notifying HMRC of a Company Strike Off

At Towerstone Accountants we provide specialist limited company accountancy services for directors and owner managed businesses across the UK. We created this webpage for people responsible for company filings and statutory records who want clear guidance on Companies House requirements without jargon. Our aim is to help you understand your obligations, avoid filing errors, and stay compliant with Companies House and HMRC.

Informing HMRC of a company strike off is one of the most misunderstood parts of closing a limited company. I regularly speak to directors who assume that once they apply to Companies House to strike off the company, everything else happens automatically. Unfortunately, that is not how the system works.

Companies House and HMRC are separate bodies. Closing a company with Companies House does not automatically close things with HMRC. If you do not actively tell HMRC what is happening, you can end up with unexpected tax demands, penalties, or letters arriving long after you thought the company was gone.

In this guide I will explain exactly how to inform HMRC of a company strike off, what needs to be done before you apply for strike off, what HMRC expects during the process, and how to make sure everything is properly finalised. I will also cover common mistakes I see and how to avoid them, so you can close your company cleanly and without ongoing stress.

Why you must inform HMRC separately

The first and most important thing to understand is this.

Companies House and HMRC do not automatically share full closure information in real time.

When you apply to strike off a company:

• Companies House deals with the legal removal of the company

• HMRC still expects tax compliance until it is formally told otherwise

If HMRC is not informed, it will continue to assume the company exists and may:

• Issue Corporation Tax notices

• Expect VAT returns

• Chase PAYE submissions

• Raise penalties for non compliance

This is why informing HMRC is not optional, it is essential.

When you should inform HMRC

Timing matters.

You should inform HMRC once the company has:

• Stopped trading

• Settled or identified all tax liabilities

• Prepared or planned final accounts

You do not need to wait until the company is actually struck off. In fact, it is better to engage with HMRC early in the process.

The usual sequence is:

• Stop trading

• Prepare final accounts and tax calculations

• Inform HMRC of cessation

• Apply for strike off with Companies House

Leaving HMRC until last is one of the most common causes of problems.

What HMRC means by company cessation

From HMRC’s perspective, striking off and ceasing to trade are related but not identical.

HMRC is primarily concerned with when the company:

• Stopped trading

• Stopped receiving income

• Stopped incurring expenses

This date is known as the cessation date.

The cessation date determines:

• The final accounting period

• The final Corporation Tax return

• Whether VAT deregistration is required

• Whether PAYE schemes should be closed

Being clear and consistent about this date is critical.

Step one, prepare final accounts

Before contacting HMRC, you should prepare final accounts up to the cessation date.

Final accounts should include:

• All income up to the last trading day

• All expenses incurred

• Accruals and prepayments

• Any asset disposals

• Any remaining balances

These accounts do not have to be filed immediately, but you should know the figures before speaking to HMRC.

HMRC will not usually agree that a company can be closed until it understands the final tax position.

Step two, calculate final Corporation Tax

Once final accounts are prepared, you need to calculate the final Corporation Tax liability.

This includes:

• Corporation Tax on final profits

• Tax on chargeable gains if assets were sold

• Any adjustments from previous periods

If tax is due, it should be paid as part of the closure process.

Trying to strike off a company with unpaid Corporation Tax is a common mistake and often leads to objections.

Step three, tell HMRC the company has stopped trading

HMRC must be formally told that the company has stopped trading.

This is usually done by:

• Writing to HMRC

• Using your online Corporation Tax account

• Contacting HMRC through your accountant

You should clearly state:

• The company name and UTR

• The date trading stopped

• That you intend to apply for strike off

• That final accounts and returns will be submitted

HMRC does not have a single “strike off” form. Communication is done through existing tax channels.

Submitting the final Corporation Tax return

A final Corporation Tax return must still be submitted.

This involves:

• Completing the CT600

• Marking it as the final return

• Including final accounts and computations

The return must cover the period from the last accounting date to the cessation date.

HMRC expects this return even if the company made no profit.

Paying any outstanding Corporation Tax

If Corporation Tax is due, it must be paid before or alongside the final return.

If tax remains unpaid:

• HMRC can object to strike off

• Interest and penalties may apply

• The company may be restored later to recover tax

Paying tax before strike off avoids almost all of these issues.

Informing HMRC about VAT deregistration

If the company is VAT registered, you must deregister for VAT.

This is done separately from Companies House and Corporation Tax.

You should:

• Submit a VAT deregistration application

• Provide the date trading stopped

• Submit a final VAT return

• Pay or reclaim any VAT due

Until VAT is formally deregistered, HMRC will continue to expect VAT returns.

This is one of the most common reasons HMRC objects to strike off.

Closing PAYE and payroll schemes

If the company has ever had employees or paid directors through payroll, PAYE must be closed.

You need to:

• Submit a final FPS

• Indicate it is the final submission

• Pay any outstanding PAYE or NIC

• Close the PAYE scheme with HMRC

Leaving PAYE open is another common trigger for HMRC objections.

Informing HMRC of strike off intention

Once final returns are submitted or in progress, you should clearly inform HMRC that:

• The company has ceased trading

• You intend to apply for strike off

• All liabilities are being dealt with

This can be done by letter or through your accountant.

HMRC then decides whether it has any reason to object.

How HMRC objects to strike off

When you apply to strike off using form DS01, Companies House publishes a notice.

HMRC monitors these notices.

HMRC may object if:

• Tax returns are outstanding

• Tax liabilities are unpaid

• VAT or PAYE schemes remain open

• Information is inconsistent

If HMRC objects, the strike off is suspended.

This is not a punishment, it is HMRC protecting its position.

What happens if HMRC raises an objection

If HMRC objects, you should not panic.

In most cases, objections are resolved by:

• Submitting missing returns

• Paying outstanding tax

• Clarifying cessation details

Once HMRC is satisfied, it will withdraw its objection and the strike off can proceed.

Ignoring the objection is the worst thing you can do.

What HMRC does not do automatically

There are several assumptions directors often make that are incorrect.

HMRC does not:

• Automatically close tax records when Companies House strikes off

• Automatically know trading has stopped

• Automatically cancel VAT or PAYE registrations

Everything must be actively communicated.

What happens after the company is struck off

Once Companies House confirms the company has been struck off:

• The company legally ceases to exist

• HMRC closes its records

• No further returns should be required

However, HMRC can still raise queries later if:

• Information was incorrect

• Tax was understated

• Assets were overlooked

This is why accuracy and record keeping are essential.

Keeping records after strike off

Even after closure, directors should retain records.

I recommend keeping:

• Accounts and tax returns

• VAT records

• Payroll records

• Correspondence with HMRC

For at least six years after strike off.

HMRC has the power to enquire into historic periods even after a company is dissolved.

Common mistakes when informing HMRC

Over the years, I see the same issues repeatedly.

Assuming Companies House informs HMRC

It does not do this fully or reliably.

Applying for strike off too early

This often triggers HMRC objections.

Forgetting VAT or PAYE

These schemes must be closed separately.

Not filing final returns

HMRC will not accept strike off without them.

Leaving small balances unpaid

Even small amounts can cause objections.

How long the HMRC process usually takes

There is no fixed timescale, but in straightforward cases:

• Final returns can be processed within weeks

• HMRC objections are resolved quickly once addressed

• Strike off completes within a few months

Delays usually arise from missing information or poor communication.

Should you use an accountant

Legally, you do not have to use an accountant.

In practice, many directors find professional help valuable where:

• There are multiple tax types involved

• There are assets or gains

• The company has traded for several years

• There is uncertainty about liabilities

An accountant can coordinate the process and reduce the risk of HMRC objections.

How I approach HMRC notifications for clients

When handling company closures, I follow a clear sequence.

• Confirm cessation date

• Prepare final accounts

• Submit final tax returns

• Pay all liabilities

• Notify HMRC in writing

• Apply for strike off

Following this order avoids almost all problems.

Most HMRC issues arise not from the rules themselves, but from doing things in the wrong order.

Final thoughts

Informing HMRC of a company strike off is not complicated, but it is detailed and requires care. The biggest mistake directors make is assuming the process is automatic or that HMRC will somehow work it out later.

HMRC expects to be told when a company stops trading, expects final returns to be filed, and expects tax to be paid. If those expectations are met, HMRC rarely stands in the way of a strike off.

In my experience, companies that close cleanly do so because they treat HMRC as part of the process from the beginning, not as an afterthought. If you approach the closure methodically, keep records, and communicate clearly, you can close a limited company without lingering tax issues or unwelcome surprises years later.

You may also find our guidance on how do i close a company at companies house and what happens to company assets when i close the business helpful when dealing with related Companies House tasks. For a broader overview of filings, registers, and statutory duties, you can visit our companies house hub.