Our company ceased trading on 31 January 2022. The directors would like to wind up the company as soon as possible. There will be a small tax liability for the period ended 31 January, which we can pay immediately. The normal year end is 31 May. The question is, what is the best option? (1) Do we change the year end to 31 January 2022 (when we deemed the trade to cease), then file accounts and a tax return? (2) Do we wait until 31 May 2022, then file the accounts and the tax return? After this, do we close the company; or (3) Do we write to HMRC with copies of the accounts for the period to 31 January and ask them to close the company file? 

Arthur Weller replies:  

If a company ceases to trade, the date of cessation marks the end of a chargeable accounting period (see HMRC’s Company Taxation manual at CTM01500) even if the period of account continues to the normal accounting date. So, a corporation tax return will be required for the period ending 31 January 2022 (see CTM01105). At the same time, HMRC should be informed that the company has ceased to trade.