How to turn around a struggling business

Sometimes, despite all your best efforts, your business may fail. Rather than continuing to fight a losing battle and increasing your losses, it might be better to take a decision to wind up your business before you are forced into insolvency by a creditor.

You can either close down your business yourself or you can find someone willing to buy it from you - though, as you would be selling a failing business, this option is unlikely and you wouldn't receive much in return.

For more information, see consider your exit strategy when starting up a business.

You should write a plan outlining everything you need to do, including closing customer accounts, notifying staff and disposing of assets.

Tax implications

Regardless of how your business closes, you may still have to file Company Tax Returns and pay Corporation Tax and Capital Gains Tax.

If you don't have the expertise in-house, you will need to engage specialist professional advisers to make sure you notify the right people and complete your tax and other financial obligations.

HM Revenue & Customs provide further information on selling or closing your company and corporation tax.