Two Limited Company Questions

[nigelnoggins]

Hello,

I hope you can help me with these two questions;

1. I'm contracting through my own limited company (only me in the company). If the company is no longer trading what happens to the cash - how do I personally access it? I assume I can't just transfer it to my personal bank account?!

2. Is it possible to change what the limited company does, if I notify HMRC? I.e. if I've stopped doing Engineering and now trade stocks and shares?

Any help appreciated.

[WTFH]

Hello,

I hope you can help me with these two questions;

1. I'm contracting through my own limited company (only me in the company). If the company is no longer trading what happens to the cash - how do I personally access it? I assume I can't just transfer it to my personal bank account?!

2. Is it possible to change what the limited company does, if I notify HMRC? I.e. if I've stopped doing Engineering and now trade stocks and shares?

Any help appreciated.

Hi Nigel, welcome to CUK.
To answer your questions:
1. You get your accountant to wind the company up and they will sort out the funds for you, ensuring that the right people get paid the right money.

2. I reckon it's probably easier to close one company down and open up a new one, others may have a better opinion. Again, your accountant should be able to help you

[malvolio]

A couple of other considerations. And I'm guessing you don't have an accountant.

A company doesn't die because it's not trading. You can continue to draw income via salary and /or dividends and/or pension contributions provided all tax liabilities are met and until you are at the point you would be trading at a loss. Or you make it dormant or close it down, but both require that you empty its bank account legally (and ideally as efficiently as possible), so get professional advice.

Changing from fee-earning to trading is not a simple step; the company becomes an investment vehicle meaning a whole other tax regime applies. Again, take professional advice.

Either way, starting a new company entirely is the most elegant solution.

[northernladuk]

1. I'm contracting through my own limited company (only me in the company). If the company is no longer trading what happens to the cash - how do I personally access it? I assume I can't just transfer it to my personal bank account?!.

Wow....

I have a feeling this is going to be the start of a lot more questions and bad news for you...

[nigelnoggins]

A couple of other considerations. And I'm guessing you don't have an accountant.

A company doesn't die because it's not trading. You can continue to draw income via salary and /or dividends and/or pension contributions provided all tax liabilities are met and until you are at the point you would be trading at a loss. Or you make it dormant or close it down, but both require that you empty its bank account legally (and ideally as efficiently as possible), so get professional advice.

Changing from fee-earning to trading is not a simple step; the company becomes an investment vehicle meaning a whole other tax regime applies. Again, take professional advice.

Either way, starting a new company entirely is the most elegant solution.

Thanks for the reply.

I did have a couple of accountants due to complications and working internationally. Due to the costs (and lack of specialist knowledge for those costs) I'm now taking the online/forum route before I consider anything else.

Is there not a simple procedure for this? Without the need for specialist advice? It's just me, with no employees and no assets - only cash in the company bank account. Surely it can't be that complicated??

Thanks again.

[WTFH]

If you're an accountant you could probably do it yourself, otherwise you need to get one in. After paying your company VAT bill and the Corporation Tax then the normal route is an MVL...
Members Voluntary Liquidation - MVL :: Contractor UK