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fiddleabout
13th December 2003, 15:08
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!!

Robot
14th December 2003, 22:54
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’.

Vetran
15th December 2003, 00:49
thats so tempting isn't it, Joe Contractor - PLC.

Get gordon off your back for a while.

MarillionFan
15th December 2003, 18:51
"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.

zeitghost
15th December 2003, 20:03
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.

fiddleabout
16th December 2003, 12:31
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

www 1staccountancy biz
16th December 2003, 13:32
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?

fiddleabout
16th December 2003, 15:00
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 ?

www 1staccountancy biz
16th December 2003, 15:50
"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."

:eek & :x

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

:D & :b

fiddleabout
17th December 2003, 09:38
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