Dissolving company with taxes to pay

[matthewjacksonwilliam]

I don't think the OP will think about it. THey've got tax evasion on their mind and don't seem to want to understand or care how a company works.

I didn't realise this was tax evasion, I think everyone wants to minimise tax liabilities as much as possible which is the goal. I have no plans of doing anything illegal and judging from the comments, it seems like this is a stupid idea.

[jamesbrown]

I didn't realise this was tax evasion, I think everyone wants to minimise tax liabilities as much as possible which is the goal. I have no plans of doing anything illegal and judging from the comments, it seems like this is a stupid idea.

My guess is you're trolling but, if you aren't, you should steer well clear of any positions of responsibility.

[Fred Bloggs]

They are cash assets of about £150k



I didn't realise this would matter as I expected the answer to remain the same regardless of the answer to these questions. The company has been open for over 4 years, corporation tax owed is £20k+ and VAT owed is also £20k+. I haven't spoken with my accountant yet as he is on holiday.

I honestly can't make up my mind whether this post is trolling or utter breath taking incompetence. You seriously believed you might be able to not pay over £40,000 in legitimately owed tax? Unbelievable.

[Lance]

Your plan has a risk of prison and financial ruin. Because it's tax evasion.


Wait till tomorrow's budget, but.....
Pay the £40k tax, and take £85k of dividends (this year before the tax rises), and strike the company off taking £25k as capital. That leaves you without liabilities and c. £90k cash after tax...

[pr1]

I have some assets in my LTD company and have some corporation tax and VAT to pay.

Is it possible to pay myself the assets in dividends to remove those assets from the company and then dissolve the company to avoid paying the taxes.

I want to keep this legal so is this possible? Or maybe some other way to approach this?

No

[Fred Bloggs]

Your plan has a risk of prison and financial ruin. Because it's tax evasion.


Wait till tomorrow's budget, but.....
Pay the £40k tax, and take £85k of dividends (this year before the tax rises), and strike the company off taking £25k as capital. That leaves you without liabilities and c. £90k cash after tax...

Experience here clearly demonstrates for some people, that's just not enough though.

[jamesbrown]

Your plan has a risk of prison and financial ruin. Because it's tax evasion.


Wait till tomorrow's budget, but.....
Pay the £40k tax, and take £85k of dividends (this year before the tax rises), and strike the company off taking £25k as capital. That leaves you without liabilities and c. £90k cash after tax...

As an aside, I wouldn’t treat that threshold as a license to distribute some as capital and some as dividends on closure. If those two events are close together, the whole lot is likely to be viewed (correctly) as a dividend distribution. That threshold is really there to simplify things, not optimise tax.

[jmo21]

I didn't realise this was tax evasion

Ah that's ok then. You should have just went for it, HMRC would have happily accepted this reasoning, you've lost out mate.


minimise.....

I think everyone wants to minimise tax liabilities as much as possible which is the goal.

avoid paying "the taxes"

Is it possible to pay myself the assets in dividends to remove those assets from the company and then dissolve the company to avoid paying the taxes.

If you'd just said, the co has £x, and owes £y, how can can i maximise how much money I can get out when I close the co, given A, B, C personal financial things that have happened, you would have got a much nicer response.