Close Down Company

[pr1]

What exactly is your account manager to you? At your accountants?
I think I'd have a fit if I was paying good money for accountancy services and someone said that to me.

Or do you mean at your bank or something?

the MVL company referred to her by her accountant - read the post

[northernladuk]

the MVL company referred to her by her accountant - read the post

Eh?

[Maslins]

What exactly is your account manager to you? At your accountants?
I think I'd have a fit if I was paying good money for accountancy services and someone said that to me.

Or do you mean at your bank or something?

If a Maslins client is considering their closure options, sure, we'll help advise as best we can.

If a client of some other accountancy firm approaches MVL Online and asks for tax advice, whilst we may give some generic information, our default response is to tell them to check with their accountant.

It should be your accountant, not the MVL provider, who knows the ins and outs of your company, it's history, your future plans etc and can therefore advise what's best from a tax perspective.

I appreciate the conclusion we came to via PM is indeed that for you, some dividend/pension to get net assets below £25k should work nicely. However a large part of this was because you'd been travelling for a while. Quite often people doing an MVL would be because they've gone into a permanent role, in which case the dividend side of it becomes far less appealing (bar using the small dividend allowance). Pension is normally viable, but means the money is tied up long term, and also you're typically limited to £40k, so again many situations where that wouldn't be viable.

[northernladuk]

the MVL company referred to her by her accountant - read the post

I don't see that. Just for clarity I was referring to this line...

Then I contacted 2 MVL companies. The one referred by my account manager did not give any useful information. She refused to offer any basic information regarding the ER tax and said she was not an accountant and could not help on the tax figure.

If her account manager is her contact at her accountants and if so the bolded statement is pretty poor. I wanted to know what/who her account manager is.

[Dan@OrangeGenie]

Week 2 decided on sticking off and working on the pension figure : Account manager confirmed that I would qualify for ER if the company reserve was below 25K and striking off would be OK.

Then I contacted 2 MVL companies. The one referred by my account manager did not give any useful information. She refused to offer any basic information regarding the ER tax and said she was not an accountant and could not help on the tax figure. I guess for my situation, it’s so easy to bring down the reserve to 25K after normal dividend and pension distribution. She was worried once I understood that, I would not go for MVL.

Another MVL specialists I contacted is Chris Maslins. His response to this post is much more insightful than my account manager who did not give any advice apart from suggested MVL and referred me to the MVL company above. Chris also helped me ran some figures and highlighted the things could affect the 25K threshold-CT relief. If I have high reserve in my company, I would definitely go to Chris for proper MVL.

I have come to the decision to bring down my company’s reserve to below 25K by making more pension contribution. Because I don’t need the money now and I did not make enough pension contribution previously.

Regarding the pension distribution, my account manager did not mention a single word of CT relief knowing I only had a small invoice for this company year and 15K pension I suggested to her will definitely put me in a loss position for the current year.

So I have to email her again about the CT relief. I guess at this point, Dan, you should understand why seeking advice on this forum is a good idea!
I have also request my account manager to give some advice on things should be considered/aware of/warned during the striking off process. And timelines! Awaiting for response…

I'm all for getting further advice and delighted you've got some, I just think it can be very dangerous sharing so much info on a forum. The conversation can be very one sided, any good advisor would ask questions and look at all avenues.

However, delighted you now have a plan

[pr1]

I don't see that. Just for clarity I was referring to this line...

Then I contacted 2 MVL companies. The one referred by my account manager did not give any useful information. She refused to offer any basic information regarding the ER tax and said she was not an accountant and could not help on the tax figure.

If her account manager is her contact at her accountants and if so the bolded statement is pretty poor. I wanted to know what/who her account manager is.

the MVL COMPANY REPRESENTATIVE that her ACCOUNT MANAGER REFERRED OP TO is not an accountant - they are probably lawyers

[northernladuk]

the MVL COMPANY REPRESENTATIVE that her ACCOUNT MANAGER REFERRED OP TO is not an accountant - they are probably lawyers

Ah yes, that makes sense now!

[7of9]

I'm all for getting further advice and delighted you've got some, I just think it can be very dangerous sharing so much info on a forum. The conversation can be very one sided, any good advisor would ask questions and look at all avenues.

However, delighted you now have a plan

I completely agree with you. If I had a very professional accountant, I probably would not seek help here. Too bad, I do not have one. So really glad I can get some help here.

[7of9]

If a Maslins client is considering their closure options, sure, we'll help advise as best we can.

If a client of some other accountancy firm approaches MVL Online and asks for tax advice, whilst we may give some generic information, our default response is to tell them to check with their accountant.

It should be your accountant, not the MVL provider, who knows the ins and outs of your company, it's history, your future plans etc and can therefore advise what's best from a tax perspective.

I appreciate the conclusion we came to via PM is indeed that for you, some dividend/pension to get net assets below £25k should work nicely. However a large part of this was because you'd been travelling for a while. Quite often people doing an MVL would be because they've gone into a permanent role, in which case the dividend side of it becomes far less appealing (bar using the small dividend allowance). Pension is normally viable, but means the money is tied up long term, and also you're typically limited to £40k, so again many situations where that wouldn't be viable.

When I come back to contacting in two years , I will make sure I get a good accountant Your help is much appreciated! Yes, my case is an odd one. People normally don't take a long holiday as I did

[7of9]

Ah yes, that makes sense now!

I am with JSA, previously PlanIT. so much with the 24 hours response rules....still waiting...