I'm not an accountant.
But I suspect the best thing for you to do may be to pay yourself about £15K dividends now, taking the tax hit, to take your company assets to about £29.9K, just under £30K. After 6 April, pay yourself a £5K dividend to take advantage of the new tax free dividend allowance. Then, since you will be under £25K, wind up taking the remainder as capital. (If you have a spouse as a shareholder adjust the numbers accordingly.)
And then, if HMRC really does challenge someone on a distribution of less than £25K, which is highly unlikely, tell them, "Of course it wasn't tax motivated. I wound up the company because I wasn't contracting anymore."
You aren't doing anything wrong here. There is a risk that HMRC will be idiots, but I'd say the risk is very low, and also the risk is very low that you'd lose your case.
But I suspect the best thing for you to do may be to pay yourself about £15K dividends now, taking the tax hit, to take your company assets to about £29.9K, just under £30K. After 6 April, pay yourself a £5K dividend to take advantage of the new tax free dividend allowance. Then, since you will be under £25K, wind up taking the remainder as capital. (If you have a spouse as a shareholder adjust the numbers accordingly.)
And then, if HMRC really does challenge someone on a distribution of less than £25K, which is highly unlikely, tell them, "Of course it wasn't tax motivated. I wound up the company because I wasn't contracting anymore."
You aren't doing anything wrong here. There is a risk that HMRC will be idiots, but I'd say the risk is very low, and also the risk is very low that you'd lose your case.
Comment