Withdrawal method .. Withdrawal method ..
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  1. #1

    fiddleabout

    Guest

    Default Withdrawal method ..

    Can you accountant bods list the ways money can be extracted from a closed company please.

    Obviously this is son of IR35 related.

    I'm aware of PAYE and the current dividend setup.

    Any comments on use of CGT allowances (14k pa for 2 people?).

    Any way to extract funds by creating special classes of shares (just fishing)

    What about after a company ceases trading - I belive a number of rules change for an investment company which I believe it can become.

    Any other ideas.

    Remember guys if GB can stitch up closed companies as tight as a frogs @rse you stand to lose a lot of clients as they move away from their ltd. companies.

    We need some legal scams and we need them pdq!!

  2. #2

    Robot

    Guest

    Default Withdrawal method........Everyones a winner

    Fiddleabout…..suggest you speak to your accountant about ESC16, close your company down and take advantage of a capital distribution which can give you 75% taper relief.

    If the company has been trading for more than two years and there are no major investments (shares in other Companies) on the balance sheet.

    Then a simple sum would be (assumption 50/50 shareholders)

    £100,000 * 75% £75,000 (would be tax free) £25,000 less capital gains exemption of £15,800 is £9,200 taxable capital gains for you is £4,600 (and the same for Mrs Fiddle) £4,600 * 40% = £1,840 tax payable (for each of you).:lol :lol :lol :lol :lol :lol :lol :lol all the way to the bank!

    Now you have all that cash……….you could open up a PLC, you only need share capital of £50,000 and gets you away from the ‘Close Company’ thing. I think you require more than 5 directors but these could be ‘family members’.

  3. #3

    Vetran

    Guest

    Default Re: Withdrawal method........Everyones a winner

    thats so tempting isn't it, Joe Contractor - PLC.

    Get gordon off your back for a while.

  4. #4

    MarillionFan

    Guest

    Default Re: Withdrawal method........Everyones a winner

    "Withdrawal method........Everyones a winner"

    **** it - I cant resist it.

    I tend to find that the withdrawal method can be quite messy. Tissues are required and there is still the possibility of pregnancy.

    I thank you.

  5. #5

    zeitghost

    Guest

    Default Re: Withdrawal method........Everyones a winner

    You only need the tissues if she gets some in her eye.

    At 49.8 I no longer have that problem, just getting there is an accomplishment.

  6. #6

    fiddleabout

    Guest

    Default Re: Withdrawal method........Everyones a winner

    MF - yes the title was deliberate - aren't there any curtains in your house?

    Robot - thanks - one for the files.

    Accountants - tick tock tick tock tick tock

  7. #7

    www 1staccountancy biz

    Guest

    Default Re: Withdrawal method........Everyones a winner

    Fiddle....I think a few of us are having a look at this to see if there are any different ideas. :hat

    Examples of withdrawing funds :-
    Salary
    Dividends
    Expenses
    Benefits
    Share Options
    Bonus Schemes
    SAYE

    Do you needs specifics?

  8. #8

    fiddleabout

    Guest

    Default Re: Withdrawal method........Everyones a winner

    OK let me go through what I think of these - don't forget I'm not an accountant!!

    > Salary
    attracts double helping of NI and unless shared gets to 40% tax levels alarmingly quickly

    > Dividends
    likely to be under attack from GB

    > Expenses
    limited amounts and subject to justification. I already use these but in moderation.

    > Benefits
    attract NI and reduce your tax code - I don't use these at all

    > Share Options
    I thought these were only possible with listed companies. In my permie days I got them and they were subject to CGT only but that was from a US company.

    > Bonus Schemes
    more paye ??

    > SAYE
    presumably save as you earn - not heard of this but assume it is going to be limited to around £3k pa like whatever name the personal ones are going under this week.

    Offshore is still looking good - as a hint thescheme I am looking at involves loans - it also sounds completely contrived and I'm not sure of it's legality still waiting the full details.

    How are you doing with your secret scheme you mentioned on NFP ?

  9. #9

    www 1staccountancy biz

    Guest

    Default Scheme

    "Offshore is still looking good - as a hint thescheme I am looking at involves loans - it also sounds completely contrived and I'm not sure of it's legality still waiting the full details."

    & :x

    "How are you doing with your secret scheme you mentioned on NFP ?"

    & :b

  10. #10

    fiddleabout

    Guest

    Default Re: Scheme

    The bad news ...
    Still don't have the details - my post is poor at the best of times (I've had first class items take 7 days on a number of occasions).
    The good news (for me but not you accountant bods) ...
    Found 3 more schemes to investigate but one sounds like it is EBT which I think I'd rule out on the grounds of risk.

    tick tock tick tock tick tock

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