Starting a new business? Get 40% off our accountancy services for 3 months! 😎

x

Like most long-term goals, planning to retire from self-employment takes a bit of time and planning to get right, from sorting out a pension, to working out what to do with the company.

There are lots of options to choose from once you’re ready to step back. In this article we’ll go through some of the possibilities, what to consider, and who you might need to tell.

Developing your exit strategy for retirement

All that hard work to build your own company can translate into a serious emotional attachment. Whether you’re struggling with the idea or raring to go, an exit strategy will help you work out what you want to do with your business, and the best way to step away from the role and transition into retirement.

This might involve simply closing the company down, selling it, handing over to someone else, retaining a smaller role, or something else. Your plan might evolve over time, but having some sort of exit strategy in place will help you minimise any uncomfortable surprises.

Do I need to create a succession plan?

Putting together a succession plan is the process of deciding who will take your place running the business once you leave. This might be particularly relevant if you’re looking to retire from an active role in the company but will continue to have some input (or a financial interest!) in it.

Assess the impact of your role within the business, and use this to help you start planning how it will function without you. This might involve leadership training for a member of staff, or increasing their exposure to more technical projects. Educating the next generation is important whatever the scale of your operation.
 

Limited company accountancy services

From only £44.50 per month

Learn more

Selling your business

There are lots of options for selling your company, although the exact nature of these can vary depending on any restrictions set out in the articles of association.

Unless you’re the sole shareholder in the company, then it’s very likely that you’ll need to consult any other shareholders and directors before making big decisions.

Beyond that, you might be able to sell your share back to the company or another shareholder, or to someone else entirely. Sometimes also known as a ‘disposal’, selling your business can be a way for it to continue – and the sale might also mean extra money for your retirement fund.

 
You’ll also need to let Companies House know about any changes to the company’s ownership and structure.

Pass it onto somebody else

Again, this might be an existing partner who already knows the ins and outs of the business, a family member, or an employee. Even though there might not be a ‘sale’ as such, you may find that you need to run it past anyone else already involved in the business, and record the transfer of ownership with Companies House.

Close it down

You might decide that you just want to stop trading and close the business. Like most big decisions, the process for this partly depends on:

  • Whether or not there are other people involved with running and owning the business
  • If the company is solvent or insolvent when you come to close
Read our article How Do I Close a Limited Company? to learn more.

Who do I need to tell that I’m retiring?

You’ll need to let Companies House and HMRC know about any changes to your own status or that of the company. This might also affect some tax registrations. For instance:

 
Learn more about our online accounting services for businesses. Call 020 3355 4047 to chat to the team, and get an instant online quote.

About The Author

Stephanie Whalley

Serial snacker, compulsive cocktail sipper and full time wordsmith with a penchant for alliteration, all things marketing and pineapple on pizza.

More posts by this author
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Read more posts...

The Accountancy Partnership – Our Positive Reviews

Here at The Accountancy Partnership, we’re proud of our customer reviews The reviews we receive from our customers show how hard we…

Read More

What’s the Most Tax Efficient Director’s Salary?

As a director you’re legally separate from your limited company even if you’re also the owner. This means you’re not allowed to…

Read More

What’s the Difference Between the National Living Wage and the National Minimum Wage?

The National Living Wage (NLW), the National Minimum Wage (NMW), and the Living Wage all sound confusingly similar, so understanding how they…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You will receive our bookkeeping software Pandle for free, as part of your package.

You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.

Please select and option below:

I will do my own bookkeeping
I want you to do my bookkeeping

Call us on 020 3355 4047 if you’re not sure.