Closing a dormant company

[pr1]

@OP, congratulations on the pregnancy [/mumsnet]

You may also be able to claim maternity pay through your limited if you are still on the payroll, so worth speaking to your accountant sooner rather than later.

But if she's perm (which she said she was) then her employer will pay her maternity pay, the salary of which will almost certainly be a lot more than her average salary for the past 6 months from her Ltd (so a lot better for those first 6 weeks)

[northernladuk]

@OP, congratulations on the pregnancy [/mumsnet]



But if she's perm (which she said she was) then her employer will pay her maternity pay, the salary of which will almost certainly be a lot more than her average salary for the past 6 months from her Ltd (so a lot better for those first 6 weeks)

Holy cow.. A nearly useful post. Am liking the new you.

[EinsteinTax]

@OP, congratulations on the pregnancy [/mumsnet]



But if she's perm (which she said she was) then her employer will pay her maternity pay, the salary of which will almost certainly be a lot more than her average salary for the past 6 months from her Ltd (so a lot better for those first 6 weeks)

It depends on individual circumstances, but in some cases it is possible to receive maternity pay from more than one employer. Definitely worth a chat with the accountant to go through in more detail.

[Maslins]

If you've got ~£50k net assets and want to get it below £25k without suffering personal tax you'll presumably be stuck at taking no more than £5k dividends per tax year (assuming current tax rules stay as they are). Therefore 5-6 years of having to do accounts and drip feeding dividends, plus of course potential tax changes along the way which could work either for or against you (though with the government deficit as it is I imagine unlikely things are going to change for the better any time soon).

Alternatively you may want to look into the option of sticking ~£30k into a pension scheme to get the net assets down quicker. You'll need to check with your accountant whether you could get corporation tax relief on that.

Otherwise your main option would be an MVL. I am potentially biased as 50% owner of MVL Online, but it can be a good way to get all the cash soonish (months rather than years) and have it in your own hands rather than in a pension which you may not be able to access for a few decades. Typically you'll pay circa £1.6k-1.7k costs (inc VAT and disbursements), and tax-wise you'll likely get £11k tax free and pay 10% on the balance...though do check these with your accountant as your personal circumstances might mean these don't apply.

[Asha]

Closing a non trading company

Hi

I would like to close my non trading limited company .
The company doesn't have any income since 2013. It does have outgoing of bank charges, payments to a charity and dividend payout etc. I have filed tax returns till 2016. Since I want to close the company, do I need to file year end tax returns for 2017 before closing the company?
The balance in company is around £15k which I would like to take as my final dividend payments.

Please let me know what do I need to do to close the company?
Do I need to hire an accountant to do the work or can I do it myself?

[TonyF]

Have you considered claiming entrepeneur's relief on the £15000? You might save money that way.

[WTFH]

Hi

I would like to close my non trading limited company .
The company doesn't have any income since 2013. It does have outgoing of bank charges, payments to a charity and dividend payout etc. I have filed tax returns till 2016. Since I want to close the company, do I need to file year end tax returns for 2017 before closing the company?
The balance in company is around £15k which I would like to take as my final dividend payments.

Please let me know what do I need to do to close the company?
Do I need to hire an accountant to do the work or can I do it myself?

Hi Asha,
I'm not sure what has changed since you last asked the same question in 2016, but the advice given back then is still valid.

Get an accountant to do it for you.

[Asha]

Thanks for the quick reply. Only change now is the company assets is less than 25k, so dont need to go through mvl route anymore. Talked to an accountant who says they will not file 2017 year end accounts but just help me with the closure for 150+vat. Is that the right way to go?

Any recommendations for the accountant?