Dividends

[Bobo]

Hi All

I haven't traded for a year but need to withdraw the funds from my business accounts, how do I find out how much tax I would need to pay if I withdrew part or all of the funds?

Thanks

[stek]

Hi All

I haven't traded for a year but need to withdraw the funds from my business accounts, how do I find out how much tax I would need to pay if I withdrew part or all of the funds?

Thanks

Can you elaborate?

[SarahL2012]

Have you had other income this year eg salary?

[Alan @ BroomeAffinity]

If you want to close the company down you could take ER and pay 10% after deduction of your CGT exemption. If it's more than £25k you'll also need to pay liquidators' fees.

If you want to keep the company alive, then it'll cost you 25% on top of a dividend. Assuming you're a 40% taxpayer.

That's very simplified and you'd be better advised to get professional advice.

[FarmerPalmer]

If you haven't traded for a year, and the money is retained from a previous year's trade, then corporation tax should have already been paid on it, and the money is retained profit.
Therefore the company could theoretically pay a dividend using the retained profit and the company would have no further tax to pay.
However you may have tax to pay, if taking a dividend causes your personal income to exceed the 40% threshold.

[JoJoGabor]

https://www.nixonwilliams.com/dividend_calculator.asp

[Sausage Surprise]

Have you asked your accountant?