How Much Does It Cost to Close a UK Limited Company?

Closing a UK limited company can cost as little as £13 in Companies House fees if the company is straightforward, solvent and eligible for voluntary strike off. In practice, however, the total cost can be considerably higher once accounting, tax, professional and asset-disposal costs are included. As of February 2026, Companies House charges £13 for an online voluntary strike-off application and £18 for a paper application. Voluntary strike off is generally the cheapest way to close a solvent UK limited company.

The important point is that the Companies House fee is only the administrative cost of applying to strike the company off. It is not necessarily the total cost of shutting down the business. A company may also need final accounts, a Corporation Tax return, VAT deregistration, payroll work, professional advice, asset transfers and settlement of outstanding liabilities. This guide breaks down the real cost of closing a UK limited company, explains the cheapest route, and shows when spending more may actually be necessary.

How Much Does It Cost to Close a UK Limited Company?

There is no single fixed price because the cost depends on how the company is closed and how complicated its affairs are. For a simple solvent company, the costs might look like this:

Companies House confirms that voluntary strike off is currently £13 online or £18 by post. The real question, therefore, is not simply "How much is DS01?" It is "How much will it cost to close this particular company properly?"

The Cheapest Way to Close a UK Limited Company

For an eligible solvent company, voluntary strike off is normally the cheapest option. The process involves applying to Companies House using form DS01. The company must meet the conditions for strike off, including generally having not traded or sold stock during the previous three months, not having changed its name during that period, not being threatened with liquidation and not having certain agreements with creditors. Before submitting the application, the company should:

• Stop trading
• Collect money owed to it
• Pay outstanding debts
• Deal with company assets
• Resolve tax obligations
• Complete necessary final accounts and tax returns
• Deal with employees and payroll
• Close or appropriately manage business accounts
• Notify relevant parties

The £13 Companies House fee is therefore only one part of the closure process.

What Does the £13 Strike-Off Fee Cover?

The Companies House fee covers the voluntary strike-off application itself. It does not pay for:

• Preparing accounts
• Preparing a Corporation Tax return
• Accountant fees
• Legal advice
• Insolvency advice
• VAT work
• Payroll work
• Settling creditors
• Transferring company assets
• Tax liabilities
• Closing commercial contracts
• Recovering company property after dissolution

Companies House specifically says that striking off is usually the cheapest way to close a company. For a very simple company where the directors handle the administrative work themselves, the government filing fee may genuinely be the only direct Companies House charge. But that does not mean the company can be closed for £13 regardless of its circumstances.

Do You Need an Accountant to Close a UK Company?

No, not necessarily. There is no general requirement to hire an accountant simply because a company is being dissolved by voluntary strike off. However, the company may still need to prepare and submit its final accounts and Corporation Tax return to HMRC. GOV.UK states that final statutory accounts and a Company Tax Return must be sent to HMRC, with the accounts identified as final trading accounts because the company will soon be struck off.

If the company's accounting records are simple and the directors are comfortable handling the process, some businesses may complete the work themselves. Professional help becomes more valuable where the company has:

• Significant profits
• Employees
• VAT registration
• Loans
• Multiple shareholders
• Property
• Investments
• Intellectual property
• Cross-border transactions
• Director loans
• Tax losses
• Complicated transactions before closure

The objective should not be to avoid every professional fee. It should be to avoid paying for unnecessary work while still closing the company correctly.

How Much Does It Cost to Prepare Final Accounts?

There is no government-set price for an accountant preparing final accounts for a company being closed. The cost depends on the company's size, records and accounting complexity. A dormant company with no transactions may require relatively little work. A trading company with several years of accounts, payroll, VAT and asset transactions can require substantially more. Before choosing an accountant, ask exactly what the quoted fee includes. For example:

• Are final accounts included?
• Is the final Corporation Tax return included?
• Are outstanding Companies House filings included?
• Is VAT deregistration included?
• Are director loan accounts reviewed?
• Is advice on distributing company assets included?
• Does the quote cover correspondence with HMRC?

A low headline fee can become expensive if important closure work is charged separately.

What About Corporation Tax?

Corporation Tax is not a fee for dissolving the company, but it can be one of the most significant amounts payable before closure. A company that has traded will generally need to submit its final Company Tax Return and pay any Corporation Tax due.

HMRC may also owe the company money. For example, a company could be entitled to a tax refund after submitting its final return. That refund should be dealt with before dissolution. If money or other assets remain when the company is dissolved, they can pass to the Crown. Companies House warns that this includes bank balances and future payments such as HMRC refunds. This is one reason why rushing to file DS01 can end up costing far more than the original £13 fee.

Does VAT Increase the Cost of Closing a Company?

It can. If the company is VAT registered, the directors may need to cancel the VAT registration and complete the final VAT return. The final VAT position should be considered alongside the company's assets and transactions. For example, stock, equipment or other assets retained or transferred during closure may have tax consequences depending on the circumstances.

If an accountant handles the VAT closure, their professional fee will increase the total cost. For a small company that has already stopped trading and has minimal VAT activity, the work may be straightforward. A business with substantial stock or complex transactions may require more detailed advice.

What Happens to Company Assets When You Close?

This is an area where trying to minimise costs can become expensive. Before dissolution, company assets should be identified and properly dealt with. These might include:

• Money in bank accounts
• Vehicles
• Equipment
• Stock
• Domain names
• Websites
• Intellectual property
• Shares
• Investments
• Amounts owed by customers
• Tax refunds
• Payment-provider balances

GOV.UK advises companies to deal with assets before applying for strike off. Any assets remaining when the company is dissolved can pass to the Crown.

Tax can arise when assets are transferred

Moving company assets to shareholders is not necessarily tax-free. For example, if a company owns a valuable asset and transfers it to its shareholder before dissolution, there may be tax implications for the company and/or shareholder depending on the transaction.

GOV.UK specifically warns that taking assets out of a company before strike off can create Capital Gains Tax considerations and that distributions above certain thresholds can have income tax consequences. This is an area where professional tax advice can be worth considerably more than the cost of the advice itself.

How Much Does a Members' Voluntary Liquidation Cost?

If the company is solvent but has more substantial assets or a more complicated structure, Members' Voluntary Liquidation (MVL) may be appropriate. An MVL is significantly more involved than voluntary strike off. The directors must make a declaration of solvency, shareholders pass the necessary resolution, and an authorised insolvency practitioner acts as liquidator.

There is no single government fee equivalent to the £13 DS01 charge because the process involves professional liquidation work. A 2026 Insolvency Service study of 2,309 MVLs in England and Wales found a median liquidation cost of 1.8% of assets realised. The research also found median paid pre-appointment fees of £1,500 and median insolvency practitioner remuneration of £2,750 among cases where those payments were made.

These figures are useful for understanding the scale of MVL costs, but they should not be treated as a fixed quote. Actual fees vary according to the company's assets, transactions, liabilities and complexity.

When can an MVL make sense?

An MVL may be worth considering where the company has substantial retained profits or assets and the shareholders want a formal liquidation rather than a simple strike off. The right choice is ultimately driven by the company's circumstances, particularly its assets, tax position and distribution strategy.

What If the Company Cannot Pay Its Debts?

This changes the calculation completely. If a company is insolvent, directors cannot simply treat voluntary strike off as a cheap alternative to dealing with creditors. GOV.UK states that when a company cannot pay its bills, creditors' interests take priority over those of directors and shareholders. Depending on the circumstances, options can include administration, creditors' voluntary liquidation or other formal insolvency procedures.

A creditors' voluntary liquidation involves appointing an authorised insolvency practitioner and following a formal winding-up process. The cost can therefore be substantially higher than £13, but the more important issue is choosing the legally appropriate procedure.

The Hidden Costs of Closing a UK Company

The biggest expenses are often not Companies House fees.

1. Accounting work

Outstanding bookkeeping, accounts or tax returns can increase professional fees.

2. Tax liabilities

Corporation Tax, VAT, PAYE and other liabilities must be resolved before closure.

3. Employee costs

Final wages, holiday pay, pension obligations and redundancy payments can become significant.

4. Contract termination

Leases, software subscriptions, service contracts and supplier arrangements may contain termination costs.

5. Asset disposal

Selling or transferring assets can create tax and professional costs.

6. Legal disputes

A company with unresolved litigation may not be suitable for simple strike off.

7. Restoration

If an overlooked asset remains after dissolution, restoring the company can be considerably more expensive than dealing with the asset beforehand. The cheapest closure is therefore usually the one that is planned before the DS01 application is submitted.

Example: What Might a Simple Closure Cost?

Imagine a small UK consulting company that has stopped trading. It has:

• No employees
• No creditors
• No VAT registration
• No outstanding contracts
• No valuable assets
• Up-to-date accounts
• No tax dispute

The directors may be able to handle much of the closure themselves. In that scenario, the direct Companies House strike-off cost is just £13 online as of 2026. Now consider a company with £80,000 in retained cash, two employees, VAT registration, intellectual property, several customer contracts and an outstanding Corporation Tax position.

The £13 filing fee remains the same, but the cost of properly closing the company could be thousands of pounds, depending on professional advice, taxes, employee obligations and asset distribution. This is why comparing closure costs solely by the Companies House fee can be misleading.

Can You Close a UK Company for Free?

Technically, directors may be able to avoid professional fees by handling eligible closure work themselves, but there is still normally a Companies House filing fee for voluntary strike off.

As of February 2026, the lowest voluntary strike-off fee is £13 for an online application. However, "free" should not be the goal. If professional advice prevents a £10,000 tax mistake, incorrectly transferred asset or expensive restoration application, paying for advice is economically sensible.

How to Keep the Cost of Closing Your Company Down

A practical cost-control strategy is:

Before closure

• Stop unnecessary spending.
• Collect outstanding customer debts.
• Cancel unnecessary subscriptions.
• Review contracts.
• Bring bookkeeping up to date.
• Check Companies House filings.
• Resolve HMRC matters.
• Identify every company asset.
• Pay legitimate creditors.

Before DS01

• Confirm the company meets strike-off conditions.
• Deal with remaining assets.
• Prepare final accounts.
• Submit the final Company Tax Return.
• Resolve VAT and PAYE matters.
• Obtain professional tax advice where necessary.

During the strike-off process

• Monitor Companies House correspondence.
• Keep evidence of required notifications.
• Watch for creditor objections.
• Do not resume trading if doing so would make the company ineligible.

This approach often costs less than trying to fix problems after dissolution.

Does IncorpUK Help Put the Cost Into Perspective?

For global founders, closing a UK company can involve more than Companies House administration. A founder operating from outside the UK may also have to consider UK banking, international payment processors, tax registrations, overseas contractors and intellectual property.

IncorpUK, a UK company formation and management platform for global founders, sits within this broader administrative landscape. The important principle is the same regardless of who handles the paperwork: the cost of dissolution should be measured by the entire closure process, not just the strike-off fee.

FAQ: Cost of Closing a UK Limited Company

What is the cheapest way to close a UK limited company?

For an eligible solvent company, voluntary strike off is usually the cheapest route. The Companies House fee is currently £13 online or £18 by post.

Is the £13 Companies House fee the total cost?

No. It is only the voluntary strike-off application fee. You may also have accounting, tax, legal, asset-disposal, employee and other closure costs.

Do I need to pay an accountant to dissolve my company?

Not necessarily. Directors can handle some closure tasks themselves, but professional accounting or tax advice can be valuable where the company has assets, tax issues, employees, loans or complicated transactions.

Is an MVL more expensive than voluntary strike off?

Yes. An MVL involves an authorised insolvency practitioner and formal liquidation work, so it normally costs substantially more than a £13 strike-off application. A 2026 Insolvency Service study found a median MVL cost equivalent to 1.8% of assets realised across its sample.

Can I dissolve a company with money in its bank account?

You should deal with company money before dissolution. Any balance remaining after dissolution can pass to the Crown, and recovering it may require restoration.

Do I have to pay Corporation Tax before closing the company?

Any Corporation Tax due should be dealt with as part of the company's final tax affairs. The company must submit its final Company Tax Return and pay outstanding tax liabilities.

Is closing a company the same as liquidation?

No. Voluntary strike off is a simpler route for eligible companies. Liquidation is a formal winding-up process and may be required where the company has more complex affairs or cannot pay its debts.

Can an insolvent company simply apply for strike off because it is cheaper?

No. Voluntary strike off should not be used to avoid dealing with creditors. Where a company cannot pay its debts, directors need to consider the appropriate insolvency procedure and should obtain professional advice where necessary.

What is the biggest unexpected cost when closing a company?

Often, it is not the Companies House fee but unresolved tax, assets, employees, contracts or professional work. Leaving assets behind can also create expensive problems because assets remaining after dissolution can pass to the Crown.

Conclusion

The cost of closing a UK limited company can range from just £13 for a straightforward online voluntary strike-off application to thousands of pounds for a company requiring substantial accounting, tax, legal or liquidation work. The £13 figure is therefore best understood as the Companies House filing cost, not the true cost of closing every company.

For a simple solvent business, voluntary strike off is usually the most economical option. But before submitting DS01, directors should settle liabilities, deal with assets, complete final tax work and make sure the company genuinely qualifies. For companies with significant assets, retained profits, complicated tax affairs or creditor issues, a more formal process may be appropriate. An MVL, for example, costs considerably more but can provide a structured way to wind up a solvent company. Ultimately, the cheapest company closure is not the one with the lowest filing fee. It is the one that leaves no unresolved tax, asset, creditor or legal problems behind.