Packing it all in - friends with benefits

**kaiser78** · 29 December 2016, 14:08

Originally posted by Duncan Disorderly View Post

I've spent the last few months looking for contracts to no avail so took the decision on advice from my accountant to close my Limited Company down, pay taxes and disperse funds. I will continue to keep an eye out but at my age (60) and with niche skills don't expect to find contracts as easily as I once did.

I am getting my financial house in order and exploring any allowances that I am legally allowed to claim and wondering if anyone has already trodden this path and can point me at anything I can use to get myself up to speed please?

thank you

Do you have a pension that you could start drawing down from ? And have you / are you consulting an IFA to discuss financial options ?

**Duncan Disorderly** · 29 December 2016, 14:18

Originally posted by kaiser78 View Post

Do you have a pension that you could start drawing down from ? And have you / are you consulting an IFA to discuss financial options ?

Thanks Kaiser. I have the pension side covered - what there is of it and don't plan to draw down or touch it until its run its full course.

**Crossroads** · 29 December 2016, 14:51

How much is in your company? What route has your accountant suggested for the closure.

**northernladuk** · 29 December 2016, 14:54

Be careful you get it right shutting the company what with the new rules about restarting etc.

**Duncan Disorderly** · 29 December 2016, 15:50

thanks for your replies. I am able to leave the pensions untouched for a few years and am in contact with my IFA. Not quite sure about the restarting be careful warning as it's too late, the deed is done. Everything seemed to tie up nicely with enough left in the coffers to pay the corp tax etc. Were I to land another contract, would I not be able to buy another off the shelf company and start again?

**Cirrus** · 29 December 2016, 16:38

I thought 'friends with benefits' were people you went out with on a casual basis.

And shagged.

Tell us the interesting bit. Have you met some hot female with tons of cash?

**ChimpMaster** · 29 December 2016, 16:51

Originally posted by Duncan Disorderly View Post

thanks for your replies. I am able to leave the pensions untouched for a few years and am in contact with my IFA. Not quite sure about the restarting be careful warning as it's too late, the deed is done. Everything seemed to tie up nicely with enough left in the coffers to pay the corp tax etc. Were I to land another contract, would I not be able to buy another off the shelf company and start again?

Not since the rules were changed in the last budget.

**fidot** · 30 December 2016, 08:59

The restriction to starting up again only applies if Entrepreneurs Relief was taken when closing first company down.

**Maslins** · 30 December 2016, 09:16

Originally posted by ChimpMaster View Post

Not since the rules were changed in the last budget.

Yes you could...and from your posts it sounds like you didn't have a hefty wodge of cash left in the Oldco hence wouldn't be any negative consequences.

What some are referring to above is if when you close there's lots of retained profit, you can often extract that and be taxed on it as CGT (quite lenient tax treatment, normally benefiting from entrepreneurs relief). However, if shortly after you start up doing a similar thing again, those tax breaks can be clawed back. If when you closed there was just enough in the company to settle corporate tax etc so negligible to come out to you afterwards, you shouldn't have any concerns on this front.

Packing it all in - friends with benefits