Currently in the process of closing my account and due to the £35k profit it seems that either voluntary liquidation or informal closure would cost about the same in tax/fees. Does anyone have any recommendations on the best route to take based on this amount?
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Informal closure or voluntary liquidation?
Collapse
X
-
-
Originally posted by bob52 View PostCurrently in the process of closing my account and due to the £35k profit it seems that either voluntary liquidation or informal closure would cost about the same in tax/fees. Does anyone have any recommendations on the best route to take based on this amount? -
Originally posted by Old Greg View PostTalk to a professional. Please. Your accountant or Maslins.Comment
-
For such a small amount, I would take a dividend of 15k and then wind up without mvl. You might save something if you’re a higher or further rate taxpayer, but remember the mvl fees will be around 2k. We cannot comment on the specifics because it requires information about your personal circs (e.g., tax bracket, whether you can distribute across two years etc.), but your accountant is probably correct.Comment
-
Originally posted by jamesbrown View PostFor such a small amount, I would take a dividend of 15k and then wind up without mvl. You might save something if you’re a higher or further rate taxpayer, but remember the mvl fees will be around 2k. We cannot comment on the specifics because it requires information about your personal circs (e.g., tax bracket, whether you can distribute across two years etc.), but your accountant is probably correct.Comment
-
Originally posted by bob52 View PostThanks, I'm a higher rate tax payer.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by northernladuk View PostDon't you just love it when key pieces of information are trickled out bit buy bit when trying to help people... Not.Comment
-
Originally posted by bob52 View PostNot sure what was missing? My accountant hasn't suggested it can be spread over two years and said my capital gains allowance can only be used in one go.Comment
-
Originally posted by northernladuk View PostDon't you just love it when key pieces of information are trickled out bit buy bit when trying to help people... Not.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment