Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
If I'm understanding correctly, if I want the flexibility of going outside IR35 within the next two years I would be better off leaving the company as it is and just filing to Companies House once a year, or making it dormant? If I did this, how would I take the remaining capital out?
The most tax efficient way is likely to be as dividends, but they'll be taxed at your marginal rate - i.e. if they take you into a higher rate tax bracket or you're already in it with other income, you'll be paying the higher level of tax on the extra dividend income. But the company can pay it out however quickly or slowly the directors decide, so some people trickle out small dividends each year to take them just up to the higher rate threshold.
It all depends on your personal circumstances and needs - are you willing to pay more tax to get the funds out more quickly? Without meaning to appear rude, it sounds a little like you're not overly familiar with the workings of your company, so this is something you should definitely speak with your accountant about. That's what you pay them for.
Comment