Hi- long time lurker, first time poster.
I have had a Ltd. co for 5 years. Due to the market dying I am moving to a senior perm role with one of the big 4.
I am planning to be perm for at least 3-5 years.
The big 4 firm has requested that I close my company/ make it dormant or use it only to receive payments for work done prior to joining the firm t the end of July
By this time, the Ltd company will have about £50k in the bank, with another £15k in outstanding invoices & £15K corp tax and vat to pay. So effectively about £40k as payable dividends, factoring in salary and expenses between now and end of July.
Normally I would close the company to save accounting fees/ administration over the next 5 years. i realise i could prob negotiate a reduction in accounting fees if the company is dormant.
However- here's a possible complication: The company has a electric car, bought on hire purchase from Tesla, with low or neglible BIK.
Overall agreement is for roughly £60k, of which roughly £39k is still payable in another 39 monthly instalments.
Should I keep the company going to continue the car payments? Is this breaking any rules? or would it be better for the company to sell the car to me?
Clearly I am looking to comply with all accounting rules/ HMRC and my new employer, but I am not clear on the best course of action.
Any advice much appreciated.
I have had a Ltd. co for 5 years. Due to the market dying I am moving to a senior perm role with one of the big 4.
I am planning to be perm for at least 3-5 years.
The big 4 firm has requested that I close my company/ make it dormant or use it only to receive payments for work done prior to joining the firm t the end of July
By this time, the Ltd company will have about £50k in the bank, with another £15k in outstanding invoices & £15K corp tax and vat to pay. So effectively about £40k as payable dividends, factoring in salary and expenses between now and end of July.
Normally I would close the company to save accounting fees/ administration over the next 5 years. i realise i could prob negotiate a reduction in accounting fees if the company is dormant.
However- here's a possible complication: The company has a electric car, bought on hire purchase from Tesla, with low or neglible BIK.
Overall agreement is for roughly £60k, of which roughly £39k is still payable in another 39 monthly instalments.
Should I keep the company going to continue the car payments? Is this breaking any rules? or would it be better for the company to sell the car to me?
Clearly I am looking to comply with all accounting rules/ HMRC and my new employer, but I am not clear on the best course of action.
Any advice much appreciated.
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