Hi all
I was hoping you'd be able to validate my thoughts and provide some advice on next steps.
I set up my own limited company 20 months ago and have been working solely with one client during this time, its been a great engagement and before christmas they offered me a perm director role which I have accepted.
I started the role last week and I'm now beginning to think about the best approach to close my company down.
Both tax years I've paid myself the maximum dividend allowance up to the high rate threshold, and am left with £40K in the company account having taken in to account all remaining liabilities - VAT, HMRC etc.
Given the relatively low amount is the best approach still an MVL combined with Enterpreneurs Relief?
My other consideration was taking a remaining dividend in the next tax year to take the remaining funds below the £25K limit, however on the face of things this still works out a more costly approach given I'll be a higher rate tax payer.
For clarity I'm looking to use any funds received upon closure of the company toward a new house, therefore distributing to a pension isn't something I'm looking to do.
Any thoughts greatly appreciated.
I was hoping you'd be able to validate my thoughts and provide some advice on next steps.
I set up my own limited company 20 months ago and have been working solely with one client during this time, its been a great engagement and before christmas they offered me a perm director role which I have accepted.
I started the role last week and I'm now beginning to think about the best approach to close my company down.
Both tax years I've paid myself the maximum dividend allowance up to the high rate threshold, and am left with £40K in the company account having taken in to account all remaining liabilities - VAT, HMRC etc.
Given the relatively low amount is the best approach still an MVL combined with Enterpreneurs Relief?
My other consideration was taking a remaining dividend in the next tax year to take the remaining funds below the £25K limit, however on the face of things this still works out a more costly approach given I'll be a higher rate tax payer.
For clarity I'm looking to use any funds received upon closure of the company toward a new house, therefore distributing to a pension isn't something I'm looking to do.
Any thoughts greatly appreciated.
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