Closing down a sole trader business,advice

AndyGarcia

I was having a pint with one of my mates last night who used to own his own carpet cleaning company. Due to the recession he was making no money so he stop trading about 3 years ago and got a job with some hardware company.

He was telling me last night that he had to still do his books last Oct and i thought he had closed the business down but he was told by his accountant that to close the business down he would have to put and ad in 2 national papers and notify the public. So as a result of it costing a few hundred he said he'd rather just fill out his returns each year.

Is this right about advertising or is there an easier way he can just close the business down considering he has been employed for the past 3 years or so?

Nehaxak

I was a sole trader here at one stage, albeit hmm, 13 years ago or so.
All it took for me to cease trading was pop into the tax office and tell them, think I filled in a form with them there and then and eh, that was it.

I did my own books though and yes I had to hold on to those books for a few years after I had ceased trading (in case I was ever audited) but I didn't have to do anything public, nor advertise in any newspaper.

Maybe it's changed since then and someone can post a more up dated or better reply but in any case, there's no harm at all in phoning the revenue and asking them directly, they're fairly nice to deal with.

bungler

Does anyone knwo why they would ask you to advertise it in a paper?

J.Ryan

Because he operated a limited company and not as a sole trader, limited companies have to give notice in national newspapers, so instead of paying a small fee, he now has to do some work every year and pay either €20 or €40 in filing fee's.

The Op even states it in the first sentence

"I was having a pint with one of my mates last night who used to own his own carpet cleaning company......"

AndyGarcia

J.Ryan wrote: »

Because he operated a limited company and not as a sole trader, limited companies have to give notice in national newspapers, so instead of paying a small fee, he now has to do some work every year and pay either €20 or €40 in filing fee's.

The Op even states it in the first sentence

"I was having a pint with one of my mates last night who used to own his own carpet cleaning company......"

sorry I by mistake said "company" I meant business or what ever a sole trader is.he is 100% a sole trader.does this mean the accountant is wrong? If so what does he have to do to close it?

J.Ryan

A sole trader just has to inform Revenue that they are ceasing, its only a limited company that has to place advertisments.