When a company is dissolved, should I pay employees before HMRC?


I am preparing to dissolve my limited company, and am starting to think about how I need to divide up what cash we’ve got left. I’m going to need to pay employees off, but I’m wondering whether I must pay HMRC before I pay employees. Does anyone know whether this is the case?



Yes, you should ensure all employees are paid before notifying HMRC and filing your last set of accounts and tax returns. Wages are a tax-deductible expense which will affect the amount of tax you have to pay to HMRC upon the company’s closure.

Click here for detailed guidance on dissolving your limited company but please consult an accountant for professional advice and assistance.

2 years ago

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