What to do with retained earnings

[css_jay99]

Do you mean by that you'd like to get all the money out of one Ltd, close it down, open up a new Ltd with an SIC different to the current one, then use it to do similar to what you do today?
That wouldn't be a good idea.

oh no, not close down, Add another flexible SIC code to current one

It isn't entirely clear what you're asking, but I refer you to WTFH's post above. There is no circumventing the TAAR as it applies to capital distributions w/r to you or a connected person being involved with "the same or a similar trade or activity", because it is drafted wisely to your shenanigans.

Sorry, the question was not related MVL/TAAR/distributing dividends. It's likely I will go permanent, an old interview may bear fruit. I also have the opportunity for the odd bit of work from old client which can still go through the Ltd Co which won't be more than 3-4 days a month but will eventually tail off in about a year. I have other ideas about generating a small amount of income (using retained earnings) but not worthy of setting up a separate entity. I've seen 2 scenarios where a contractor's wife used the same company for graphic design work and another wife for importing clothing. Income from those secondary business were less. I never bothered to ask if they used specific sic codes or not.

[jamesbrown]

It isn't really about SIC, these are self-assigned.

You can open as many companies as you want, at the same time or consecutively (assuming it isn't some kind of avoidance sham).

You can also open one company that does many different things.

This is just business.

The problem really only arises w/r to the TAAR/capital distributions in this context. So if you go down that route, you'd better not do anything similar, as a trade, within two years unless you want the capital distribution reclassified. Here, "similar" here means quite vaguely similar too, not exactly the same. Working through an umbrella has been clarified as fine.

[css_jay99]

It isn't really about SIC, these are self-assigned.

The problem really only arises w/r to the TAAR/capital distributions in this context. So if you go down that route, you'd better not do anything similar, as a trade, within two years unless you want the capital distribution reclassified. Here, "similar" here means quite vaguely similar too, not exactly the same. Working through an umbrella has been clarified as fine.

Understood. Stay permie/umbrella for at least 2yrs

[SimonMac]

Do you have any other shareholders? Might look a bit sus adding them now but if for example your spouse is already a shareholder it opens up a few other avenues