Personal taxation on MVL distribution

[zappakat]

I've been reading for a while and I'm still not confident I know the answer.

If I close my company down through a MVL and the remaining profits are transferred to me as capital after taxation and ER has been applied.
Do I then have to make a further tax payment on it when I declare it on my personal tax return (which I will need to do for dividend tax next year)?

Any help appreciated.
Z

[Louisa@AardvarkAccounting]

Right a couple of things:
You'll need to include the capital gain on your self assessment in the year of the distribution. If there were multiple distributions then make sure you're clear on the dates.
Then you'll have the capital gains annual allowance deducted from this.
Any remainder will be taxed, if you are eligible for ER then this will be taxed at only 10%.
Which you'll pay on your self assessment as usual.

[northernladuk]

You aren't intend to contract again in the shirt term future are you?

[zappakat]

Not shirtly no. Currently in a full time gig.

So my company filled in a tax return around November and I've since stopped using my accountant.
However I'm assuming I needed to register for self assessment before October to submit a self-assessment (dividend tax) in February 2018.

WRT to my MVL submission I've just engaged an MVL specialist so I don't expect a first round of disbursements for at least a couple of months, are we saying I should be expected to submit a return before April for something I may only receive in March?

BTW Louisa thanks for the reply, still not sure I understand. If I use say 100k as an example (all debts paid), MVL costs 3k so leaving 97k.
If ER is 10% that leaves 87.3.
I declare that on a self-assessment do I then pay further tax on that?

[Neil@Intouch]

BTW Louisa thanks for the reply, still not sure I understand. If I use say 100k as an example (all debts paid), MVL costs 3k so leaving 97k.
If ER is 10% that leaves 87.3.
I declare that on a self-assessment do I then pay further tax on that?

If £97k was the distributed amount to you via MVL after everything has been settled, then this would be the sale value on the capital gains page on the tax return. The purchase price would be the share capital. You would then pay 10% ER on £97,000 less the share capital, if you qualify for ER as Louisa previously stated.

[northernladuk]

I'd be speaking to MVLOnline with that much on the line.

[TheCyclingProgrammer]

If you're a basic rate payer, is there even any need to claim ER? Isn't the basic CGT rate 10% now anyway?*

Either way, make sure you're not planning to start contracting again within 2 years of your distribution.

*Edit: ah, only if you're combined income and gains are below the higher rate income tax threshold.

[zappakat]

I'd be speaking to MVLOnline with that much on the line.

I've looked at MVLonline but as you say "it's a lot of money" and they are based a long way from me. With a local firm at least I can go and check they do have a business office.
I'm also a bit wary of the first page of the form that asks for my bank account and sort code before I've even touched base with anyone.

[SueEllen]

I've looked at MVLonline but as you say "it's a lot of money" and they are based a long way from me. With a local firm at least I can go and check they do have a business office.
I'm also a bit wary of the first page of the form that asks for my bank account and sort code before I've even touched base with anyone.

The online part of MVLOnline equals online.

The guy who runs the company is an accountant who use to post on here and others have used them which is why they have been recommended.

I'm not sure what you mean by a business office.

[northernladuk]

You want to go.in to their office to check? Ah how very 90's