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chrisdidi
15th May 2012, 19:46
Can someone explain the process of taking money out of my Ltd company. I have filled for tax and have paid the tax man and there is about £15000 left in the company account and I own 100% shares of the company. How do I go about taking this (the £15000) money out ?

Can someone please give me a step by step guide please?

Is the first process notifying Companies house and request for company close ?

Wanderer
16th May 2012, 01:28
How do I go about taking this (the £15000) money out ?

How long has the company traded? Have you file accounts with companies house yet? Are you sure you have accounted for everything properly? You probably want to get an accountant to do the closure for you, it costs a few hundred pounds and it may save you a lot of money in the long run...

Clare@InTouch
16th May 2012, 07:33
Notifying CH is the last step. Go careful not to do it before you close the company bank account, else the assets will be frozen and passed to The Crown.

You need to prepare final accounts, close the bank account, de-register for VAT and PAYE, and allocate the final money to either dividend or capital distribution. Under £25,000 can be a capital distribution without getting approval from HMRC these days, but you need to consider your whole tax position - dividends could be more tax efficient if you have no other income, and there's your CGT allowance to take into account too. Without knowing your other income, I couldn't advise how to split it. As Wanderer mentions above, how long you've traded could affect things too.

Once the accounts are prepared, you file with HMRC and CH, then pay any final taxes. CT will have to be paid straight away, rather than at the usual 9 month point. When all taxes are clear, you can apply to Companies House using form DS01. It will cost you £10. CH advertise for 3 months then, providing there are no objections, will dissolve the company.

You need to then declare the final distribution on your 2012/13 tax return.

The steps need to be followed in order, and you need to go careful you don't miss anything. If you don't de-register for VAT for example, HMRC would object when you tried to strike off and the whole process would be put back by 3 months.

BrilloPad
16th May 2012, 07:35
Notifying CH is the last step. Go careful not to do it before you close the company bank account, else the assets will be frozen and passed to The Crown.


+1

I once paid corporation tax early to get everything closed. HMRC sent the company a cheque for interest of £9! Took quite alot of messing about to get the cheque made out to me. For anyone else I would not have bothered - but for HMRC I chased it on a point of principal.

chrisdidi
16th May 2012, 16:20
Notifying CH is the last step. Go careful not to do it before you close the company bank account, else the assets will be frozen and passed to The Crown.

You need to prepare final accounts, close the bank account, de-register for VAT and PAYE, and allocate the final money to either dividend or capital distribution. Under £25,000 can be a capital distribution without getting approval from HMRC these days, but you need to consider your whole tax position - dividends could be more tax efficient if you have no other income, and there's your CGT allowance to take into account too. Without knowing your other income, I couldn't advise how to split it. As Wanderer mentions above, how long you've traded could affect things too.

Once the accounts are prepared, you file with HMRC and CH, then pay any final taxes. CT will have to be paid straight away, rather than at the usual 9 month point. When all taxes are clear, you can apply to Companies House using form DS01. It will cost you £10. CH advertise for 3 months then, providing there are no objections, will dissolve the company.

You need to then declare the final distribution on your 2012/13 tax return.

The steps need to be followed in order, and you need to go careful you don't miss anything. If you don't de-register for VAT for example, HMRC would object when you tried to strike off and the whole process would be put back by 3 months.

Hi thanks for the advise.

I've gone through an accountant and he has filed tax and submitted the CT600 online, am just waiting for the slip to pay the co-operation tax to arrive through the post so that I can pay CT online. The company has been operating for 1 year exactly.

So does this mean my next step is to de-register VAT and close my company bank account? (How do I take out the remaining money i.e. 15k) before I pay the £10 and request for closure from CH?

At which time do I allocate final money? I have stopped working I used to be self employed and contracted through my ltd company. (I wish I went for an umbrella company this is just such a headache).

Wanderer
16th May 2012, 20:25
So does this mean my next step is to de-register VAT and close my company bank account? (How do I take out the remaining money i.e. 15k) before I pay the £10 and request for closure from CH?

The accountant's figures should tell you what's yours as salary/dividends/capital gain and what goes to your company's creditors (eg, HMRC). Hopefully the numbers will all add up correctly leaving a zero balance in your bank account.

Ask your accountant to clarify what's what and also remind them to deregister you for VAT if they've not done so already.

Old Hack
24th May 2012, 11:08
Can't you also just close the company and take £10,600, per director, cgt tax free out of it or something?

geoffreywhereveryoumaybe
24th May 2012, 11:19
Can someone explain the process of taking money out of my Ltd company. I have filled for tax and have paid the tax man and there is about £15000 left in the company account and I own 100% shares of the company. How do I go about taking this (the £15000) money out ?

Can someone please give me a step by step guide please?

Is the first process notifying Companies house and request for company close ?

You can see their banner add on the top and alongside the forum pages. There you will find a very good guide to the process and finances around closing down your ltd company

Clare@InTouch
24th May 2012, 11:21
Can't you also just close the company and take £10,600, per director, cgt tax free out of it or something?


The CGT route is only available to shareholders, not directors, and there are certain restrictions. You have to have been trading for a year, and have a final distribution of under £25k. Over that, and you'd need a formal liquidation to get the CGT treatment. Otherwise, it's dividends.