Dormant or Close LTD company

[Lance]

Also applies if using ER to get money out of the company at reduced tax rate.

actually it's nothing to do with ER.
It's to do with taking the money out as a capital distribution. ER is a tax relief on that money, but not the actual reason you can't just start again.

[bootham]

Thanks for replies so far. I have got quote from Accountant to close LTD company.

I have overall 70K in Business account and Accountant said roughly 48,000 in retained profit. He suggested to take MVL option, Ltd company closure charge 540 and insolvency fees 2,000 + VAT.

I and Mrs are 52-48% shareholders, would you suggest to utilise Director's personal tax allowance and Dividend to take number down to 25K and then go with Voluntary Strike Off option?

Thanks in advance.

[Lance]

Thanks for replies so far. I have got quote from Accountant to close LTD company.

I have overall 70K in Business account and Accountant said roughly 48,000 in retained profit. He suggested to take MVL option, Ltd company closure charge 540 and insolvency fees 2,000 + VAT.

I and Mrs are 52-48% shareholders, would you suggest to utilise Director's personal tax allowance and Dividend to take number down to 25K and then go with Voluntary Strike Off option?

ask your accountant to run both ideas for you....
7.5% dividend tax is less than 10% CGT(with ER), so your suggestion makes sense, but your accountant will know all the facts. £48k retained from £70k doesn't sounds great though unless CT and VAT haven't been paid.

[candy]

is your company name recognised by clients? If not, screw it. Close the company and when you need a new one, create it. The only other reason you might want to keep it is to preserve continuity if, e.g. you're applying for a mortgage.

But if you decide to make it dormant - ditch the accountant. The necessary work for a dormant company is negligible. It doesn't need an accountant.

Doesn't this matter how much money you have in your company?

If you have £300k... maybe live in Thailand/Singapore/Philippines for the next 6 months by the beach and pay yourself out with low taxes instead of UK taxes?

Possibly even take a free job for 4 hours hourly that you enjoy... that'll teach you some new job skills.