Updated: 20 March 2026
If you plan to close your limited company using a voluntary strike-off, you must inform HMRC and settle all outstanding tax obligations. If HMRC is not notified, they may object to the strike-off and delay the closure.
This guide explains how to inform HMRC of a company strike-off, including submitting final accounts, filing your final Corporation Tax return, and notifying HMRC after submitting the DS01 form to Companies House.
What is a company strike-off?
A company strike-off is the process of removing a limited company from the Companies House register, thereby legally dissolving the company so it no longer exists. Directors typically apply for a voluntary strike-off when a company has stopped trading, and all debts and obligations have been settled.
Once a company is struck off:
- The company ceases to exist as a legal entity
- It can no longer trade or carry out business
- Any remaining assets transfer to the Crown.
A voluntary strike-off is commonly used by Directors who want to close a solvent company that is no longer operating.
When do you need to inform HMRC about a strike-off?
You should inform HMRC when your company stops trading and before the strike-off is completed. HMRC must confirm that all tax obligations have been settled before the company can be dissolved. If taxes remain unpaid or returns are missing, HMRC can object to the strike-off application and delay the closure.
When informing HMRC about a company strike-off, Directors should:
- Notify HMRC that the company has stopped trading
- Submit final accounts and a final Corporation Tax return
- Pay any outstanding tax liabilities
- Send HMRC a copy of the DS01 strike-off application within seven days of submitting it to Companies House.
This ensures HMRC has confirmed the company’s tax affairs are fully closed before the strike-off proceeds.
Related: How to Close Down a Company: The Complete Guide
How to inform HMRC of a company strike-off
The process involves completing several administrative steps to ensure the company’s tax affairs are fully closed.
Step 1: Stop trading
Before applying for a strike-off, the company must stop trading completely. This means it must no longer carry out business activities, sell products or services, or generate revenue.
To qualify for a voluntary strike-off:
- The company must not have traded in the last 3 months
- It must not have sold company assets during that period
- It must not have changed its company name.
The company must also have no outstanding debts, legal disputes, or insolvency proceedings. All liabilities should be settled before applying for strike-off.
If the company still owes money to creditors, lenders, or HMRC, a voluntary strike-off may not be appropriate and formal liquidation may be required instead.
Step 2: Prepare final company accounts
Once the company has ceased trading, Directors must prepare the final statutory accounts for the last trading period.
These accounts show:
- The company’s income and expenses
- Any remaining assets or liabilities
- The company’s final financial position.
These accounts confirm the company’s financial status at the time it ceased trading. They are required when submitting the company’s final Corporation Tax return to HMRC and help ensure all tax obligations are correctly calculated before the company is dissolved.
Step 3: Submit the final Corporation Tax Return (CT600)
HMRC requires a final Company Tax Return (CT600) covering the period up to the date the company stopped trading.
Directors must:
- Submit a CT600 Corporation Tax return
- Mark the return as the company’s final return
- Include the company’s final statutory accounts
- Pay any outstanding Corporation Tax.
Even if the company makes no profit or has no tax to pay, HMRC still requires a final return so the company’s Corporation Tax account can be formally closed.
Step 4: Cancel VAT registration (if applicable)
If the company is registered for VAT, it must deregister before the strike-off can proceed.
Directors should:
- Inform HMRC that the company has stopped trading
- Submit a final VAT return
- Pay any VAT owed.
VAT deregistration can usually be done through the HMRC online portal. Once the registration is cancelled and the final return is submitted, the company will no longer need to file VAT returns.
Step 5: Close the PAYE scheme (if applicable)
If the company has employees, including Directors receiving a salary, the PAYE scheme must be closed.
This usually involves:
- Submitting a final payroll report (Full Payment Submission)
- Marking the submission as the final PAYE return
- Issuing P45 forms to employees
- Informing HMRC that the PAYE scheme is closing.
Directors must also ensure any outstanding PAYE or National Insurance contributions are paid before the company is struck off.
Step 6: Apply for strike-off using form DS01
Once the company’s tax affairs have been settled, Directors can apply to strike the company off using form DS01.
To submit the application:
- Complete the DS01 form
- Ensure the majority of Directors sign the form
- Submit it to Companies House
- Pay £13 for online submissions or £18 for paper applications.
Directors must also send copies of the strike-off application to interested parties within seven days, including:
- Shareholders
- Creditors
- Employees
- HMRC.
This ensures all relevant parties are aware that the company intends to close.
Step 7: Wait for the Gazette notice
Once Companies House receives the DS01 application, it publishes a notice in The Gazette announcing the proposed strike-off.
This begins an objection period of around 2 months. During this time, creditors or HMRC can object if there are outstanding issues, such as unpaid debts or missing tax returns.
If no objections are raised, Companies House will remove the company from the register, and it will be formally dissolved.
Related: Using Form DS01 to Strike-Off a Company
What happens if you do not inform HMRC?
Failing to notify HMRC can cause significant delays or complications during the strike-off process.
HMRC may object to the strike-off if:
- Corporation Tax returns are missing
- Taxes remain unpaid
- VAT or PAYE accounts are still active
When HMRC raises an objection, Companies House will suspend the strike-off application until the issue is resolved.
Directors may then need to submit outstanding tax returns, pay overdue taxes, or formally close tax accounts before the strike-off can proceed. In some cases, the company may need to consider liquidation rather than strike-off if significant issues remain.
When a strike-off may not be the best option
A voluntary strike-off is only suitable for solvent companies free of debts. This means the company must be able to pay all of its liabilities and have no outstanding obligations to creditors, lenders, employees, or HMRC.
If a company still has debts or unresolved financial issues, applying for a strike-off can lead to objections from creditors or HMRC, which may stop the process. In these situations, Directors may need to consider a formal liquidation process instead.
Members’ Voluntary Liquidation
A Members’ Voluntary Liquidation (MVL) is typically used when a solvent company has significant retained profits or assets. Through an MVL, funds distributed to shareholders are often treated as capital rather than income, which can make the process significantly more tax-efficient. For companies with retained profits over £25,000, an MVL can often provide substantial tax savings compared to a simple strike-off.
Creditors’ Voluntary Liquidation
A Creditors’ Voluntary Liquidation (CVL) is used when a company is insolvent and unable to pay its debts. In this process, a licensed insolvency practitioner formally closes the company, sells any remaining assets, and distributes the proceeds to creditors.
Choosing the correct closure route is important, as the wrong option can lead to tax inefficiencies, delays, or potential Director risks. Taking advice before closing a company can help ensure the process is handled correctly and in the most financially beneficial way.
Related: Voluntary Liquidation vs Strike-Off: Which Is Best For Your Company?
Clarke Bell can help
Clarke Bell specialises in helping Directors close their companies through Creditors’ Voluntary Liquidations and Members’ Voluntary Liquidations. Our experienced team provides clear, professional advice and manages the entire process from start to finish.
Whether your company is solvent or insolvent, we will explain your options, outline the most suitable route, and ensure everything is handled efficiently and correctly.
Contact us today to arrange a free consultation with one of our experienced advisers.
Frequently asked questions
Do you need to inform HMRC when striking off a company?
Yes. Directors must inform HMRC when a company stops trading and before it is struck off. This involves submitting final accounts, filing a final Corporation Tax return, paying any outstanding tax, and sending HMRC a copy of the DS01 strike-off application.
How do you notify HMRC that a company has stopped trading?
You notify HMRC that a company has stopped trading by submitting a final Corporation Tax return (CT600) and marking it as the final return. This should include final accounts covering the last trading period and confirm the date the company ceased trading.
Do you need to send the DS01 form to HMRC?
Yes. When applying for a company strike-off, Directors must send a copy of the DS01 form to HMRC within seven days of submitting it to Companies House. This allows HMRC to review the company’s tax position and raise any objections if necessary.
Can HMRC object to a company strike-off?
Yes. HMRC can object to a company’s strike-off if tax returns are missing, taxes remain unpaid, or tax accounts, such as VAT or PAYE, are still active. If HMRC objects, Companies House will suspend the strike-off process until the issue is resolved.
Can you strike-off a company with debts?
No. A voluntary strike-off should only be used if the company has no outstanding debts. If the company owes money to creditors or HMRC, Directors will usually need to close the company by way of a Creditors’ Voluntary Liquidation.
How long does a company strike-off take?
A company strike-off usually takes around 2 to 3 months after submitting the DS01 form. Companies House publishes a notice in The Gazette, and if no objections are raised during the two-month objection period, the company will be dissolved.
