I'm a Contractor, Get Me Out Of Here

[TroubleAtMill]

For various reasons, I'm finally able to realistically think about leaving the UK - most probably heading to Hong Kong where I have family and friends. After seven years of contracting and penny-pinching, I've built up a decent personal warchest, to keep me going for a year or so, as well as having quite bit in the LtdCo.

Although it would nice to find a contract out there, I accept I'm probably going to be a permie again

So, assuming I'm able to get someone foolish enough to employ me, what is the most efficient way of taking funds out of the LtdCo over a period of a year or two?

My current thoughts are:
- To keep LtdCo running, just in case things don't work out, but de-registering from VAT etc.
- Immediately give myself a P45
- Pay out dividends but keeping under the 40% income tax threshold.
- After being away for a year (i.e. no longer resident), pay out larger dividends without incurring UK income tax.
- After many years, close down the company without incurring much CGT.

Btw, thanks to PhilAtBFCA for this helpful link picked up from another thread.

Any advice or corrections of my assumptons? I'll be most appreciative...

As an incentive, if I'm successful, there'll be one less barely-competent Java programmer to compete with!

TaM.

(Of course, it might go like most of my projects... nowhere!)

[SteveMcadden1]

For various reasons, I'm finally able to realistically think about leaving the UK - most probably heading to Hong Kong where I have family and friends. After seven years of contracting and penny-pinching, I've built up a decent personal warchest, to keep me going for a year or so, as well as having quite bit in the LtdCo.

Although it would nice to find a contract out there, I accept I'm probably going to be a permie again

So, assuming I'm able to get someone foolish enough to employ me, what is the most efficient way of taking funds out of the LtdCo over a period of a year or two?

My current thoughts are:
- To keep LtdCo running, just in case things don't work out, but de-registering from VAT etc.
- Immediately give myself a P45
- Pay out dividends but keeping under the 40% income tax threshold.
- After being away for a year (i.e. no longer resident), pay out larger dividends without incurring UK income tax.
- After many years, close down the company without incurring much CGT.

Btw, thanks to PhilAtBFCA for this helpful link picked up from another thread.

Any advice or corrections of my assumptons? I'll be most appreciative...

As an incentive, if I'm successful, there'll be one less barely-competent Java programmer to compete with!

TaM.

(Of course, it might go like most of my projects... nowhere!)

Can I ask why HongKong and what sector are you working in??

[TroubleAtMill]

Can I ask why HongKong and what sector are you working in??

HK because I have an older sibling there and lower tax, potential of China etc. Sector is Financial IT - yeah, not the best to be in at the moment but I'm up for the challenge.

[centurian]

- Pay out dividends but keeping under the 40% income tax threshold.
- After being away for a year (i.e. no longer resident), pay out larger dividends without incurring UK income tax.
- After many years, close down the company without incurring much CGT.

I heard that there's some kind of rule against simply leaving a company dormant for years and years and draining the resources gradually to avoid tax.

Not sure about the specifics though. You can probably get away with it for a few years, but not sure about 'many years'.

[TroubleAtMill]

Many years is probably an exaggeration, I'm thinking two or three years. But good to know about the possible restriction. Off to google now.

[Gonzo]

One potential gotcha is that your company might be considered resident in your new home country along with you when you move there and therefore subject to local taxation.

That may or may not work out better for you.