Closing Down - Moving to Australia

[rball]

Hi Guys, I've been a follower of ContractorUK, but this is my first post - so be kind.

I've been a contractor in the UK for a few years and am in the process of shutting down the business in preparation for a move to Australia(Perth) in October.

Couple of questions:

1) What's the most tax efficient way of closing down my UK business. It's was formed less than 3 years ago, so I understand that applying for entrepreneurs relief in my final co. return may be possible. Should I draw max dividends up to minimum tax threshold before company closure or wait until assets are dispersed as capital?

2) Ideally I'd like to continue contracting in Perth, and want to know what's the most common arrangements for contractors to work on. (Ltd, Unberella, sole trader, etc) My research so far has lead me to believe that some contractors work through the agents payroll or use the services of a Management Company(Payme, cxc, etc) and some operate under a PTY LTd co - but the benefits are even less so than the UK.

I know some posters on here have already shared some experiences(gadgetman) - but it would be helpful to consolidate this information.

Many thanks.

[Gun4Hire]

Me Too!

I'm also out of here after ten years of contracting in the UK, it's turned to crap, being benched now could mean a long wait.

*(1)
I wound up my company at the end of July, I had always paid out max dividends a day after the new personal tax year began, this year was no exception. So yes I would recommend taking maximum dividends first as you won't be liable for any extra tax. After your Corporation Tax Return, PAYE, VAT and any other liabilities are paid, you can just fold and take the money. What's left for a capital distribution will be taxed at around 10% after Entrepreneurs relief. Actually you can fold, take the money and pay your HMRC bills from your personal account later, but I didn't do it that way just to keep the figures simple. The CT 100 or whatever it is won't be due until next year - so you never know, if you don't intend returning (ahem).

*(2)
I haven't a clue and also need to know. I do know that in Australia there are stuff all advantages to having your own Limited Company, tax wise. I found Cxc by chance and seems at first sight to be OK. I've never liked anything I didn't have control over, but that's easy in the UK, I think there are few options in Australia for tax efficiency, but I've never heard of anyone operating as a sole trader out there.

Good luck, I heard that Perth is pretty quite at the moment unless you know someone, it's a small market out there. Sydney, Melbourne and even Brisbane are supposed to be flying. But as with all anecdotal evidence, you never can tell until you've tried it for yourself.

[rball]

Gamble

Thanks for that. I think my information is on par with yours.

I agree, Perth is not the biggest market in Australia, but when I compare advertised jobs with my current area (Leeds, Manchester, etc), Perth seems to have the edge.

At the end of the day it's all a gamble, I could be back in 6 months with an empty war chest :-0

I'm also out of here after ten years of contracting in the UK, it's turned to crap, being benched now could mean a long wait.

*(1)
I wound up my company at the end of July, I had always paid out max dividends a day after the new personal tax year began, this year was no exception. So yes I would recommend taking maximum dividends first as you won't be liable for any extra tax. After your Corporation Tax Return, PAYE, VAT and any other liabilities are paid, you can just fold and take the money. What's left for a capital distribution will be taxed at around 10% after Entrepreneurs relief. Actually you can fold, take the money and pay your HMRC bills from your personal account later, but I didn't do it that way just to keep the figures simple. The CT 100 or whatever it is won't be due until next year - so you never know, if you don't intend returning (ahem).

*(2)
I haven't a clue and also need to know. I do know that in Australia there are stuff all advantages to having your own Limited Company, tax wise. I found Cxc by chance and seems at first sight to be OK. I've never liked anything I didn't have control over, but that's easy in the UK, I think there are few options in Australia for tax efficiency, but I've never heard of anyone operating as a sole trader out there.

Good luck, I heard that Perth is pretty quite at the moment unless you know someone, it's a small market out there. Sydney, Melbourne and even Brisbane are supposed to be flying. But as with all anecdotal evidence, you never can tell until you've tried it for yourself.

[HairyArsedBloke]

What's the most tax efficient way of closing down my UK business.

1) Optional, take out massive debts.

2) Convert bank balance to cash, gold, or other liquid asset that can be transported.

3) Leg it.

[icemancomeths]

Thanks for that. I think my information is on par with yours.

I agree, Perth is not the biggest market in Australia, but when I compare advertised jobs with my current area (Leeds, Manchester, etc), Perth seems to have the edge.

At the end of the day it's all a gamble, I could be back in 6 months with an empty war chest :-0

Did you make a success of this? I too am in the process of closing down and moving to Aus, any advice?

[northernladuk]

A) Try asking your accountant

B) Try searching the forums using the method show in the thread below. This is asked ad-infinitum on here...

http://forums.contractoruk.com/welco...uk-forums.html

[DigitalUser]

A) Try asking your accountant

B) Try searching the forums using the method show in the thread below. This is asked ad-infinitum on here...

http://forums.contractoruk.com/welco...uk-forums.html

Try checking your dates.

Sent from my Nexus 4 using Tapatalk

[northernladuk]

Try checking your dates.

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Today 15:36

and ??

[DigitalUser]

and ??

Check the OP date, and then get back into your box.

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[GazCol]

NLUK wasn't responding to the OP but icemancomeths who posted, in correlation to the date, funnily enough, just before he did.