Closing a dormant company

[Asha]

Hi All,

I started a limited company in year 2010. Have contracted through it for 3.5 years.
Got pregnant and stopped working in end of 2013. Made company dormant and took some dividends in the following year.
After 2.5 years break, I started permanent work in Jun 2016, so company is still lying as dormant with 50K in the accounts.

As I am pregnant again, I wont be able to continue my permanent job after March 2017 for atleast a year.
In view of these circumstances, does it make sense to close the company or shall I keep it as dormant for 2 more years.
Will it make sense to keep it dormant and take out dividends in the future and eventually close the company when the corpus amount goes below 25k?

Does Enterpreneurs relief apply to me?
Will it be more Tax efficient to close the company now or later?
I am paying accountants every year to file dormant company returns, I m paying bank fee every month.

Thanks

[northernladuk]

I am paying accountants every year to file dormant company returns, I m paying bank fee every month.

What did they say when you asked them the these questions?

[Asha]

What did they say when you asked them the these questions?

I am still waiting for their answers. Thought it will be good idea to get more opinions.

[Darren at Fox-Bartfield]

Company Closure

Be an idea to have a chat with your accountants for the most efficient way to close it. With you receiving a salary in the current tax year, I presume you're a higher rate tax payer already? This would have a bearing on the amount that could be efficiently taken out in the current tax year.

Could be that you keep the company open until you go onto maternity leave, extract as much as you can until get below the £25k as you mention then close. Also depends on when you want the cash.

Alternatively, close it using a liquidator, pay them and take the Entrepreneurs relief.

[EinsteinTax]

I agree with Darren - it's best to speak to your accountant on the most efficient way to close it.

If there is no immediate need for the cash, one option would be to just keep it running and take £5k dividends per year tax free until you get below £11k and then take the remainder as a capital distribution on closure.

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.

[northernladuk]

I agree with Darren - it's best to speak to your accountant on the most efficient way to close it.

Bugger Darren. I said it first!!!

[EinsteinTax]

Bugger Darren. I said it first!!!

Sorry NLUK - I agree with you too

[Darren at Fox-Bartfield]

Company Closure

Sorry NLUK, you must have quicker fingers than me!

[northernladuk]

If you are still waiting then have a look at MVLOnline.co.uk in the meantime in case you need to go down that route. Not sure they will be too willing to get in to your tax situation but can certainly give you some clarity around MVL if you need to go that way.

[barrydidit]

Bugger Darren.

Sorry NLUK, you must have quicker fingers than me!

It's not his fingers you need to worry about....