to close or not to close, that is the question

[malvolio]

...rather than than trying to extract the divs at 0% below the higher earnings threshold

Simple - for £200k you can't, in less than 7 years...

[kanulondon]

but again ... it all comes back to getting the money out of the business account and working for you ....

For arguements sake (but the figures are roughly accurate)...

200K released capital in a cash account at 5% is 10K a year interest.
this would cover my rent.

200K released capital uset to buy a flat instead of 5% mortgage interest rate is 10K a year saved.

The only downside is paying the 10% CGT rather than than trying to extract the divs at 0% below the higher earnings threshold.

Yeh ... need to talk to an accountant ... anyone recommend an accountant who has can offer me good advice?

PM me for accountant details....

[hgllgh]

[QUOTE=hgllgh;614224]but again ... it all comes back to getting the money out of the business account and working for you ....

For arguements sake (but the figures are roughly accurate)...

200K released capital in a cash account at 5% is 10K a year interest.
this would cover my rent.

200K released capital uset to buy a flat instead of 5% mortgage interest rate is 10K a year saved.

The only downside is paying the 10% CGT rather than than trying to extract the divs at 0% below the higher earnings threshold.

QUOTE]


Actually I take that back ... in personal finance terms rule number 1 is to clear your debts ... you biggest debt is going to be your mortgage.

For arguements sake...

If I don't close the company down ...
At the end of a 25 year mortgage term I've paid approx 250K mortgage interest but own a property so I've spent 200K for the property and 250K interest = 450K. If I rent ... at the end of a 25 rental I've paid 250K rent but own nothing. (Both of these options would need to come out of the existing 200K + 25 years of salary and divs.)


If I close the company down and get the 200K and use that to buy a property cash ... at the end of a 25 year term I've paid 200K and no mortgage interest AND own a property ... this compares with the 450K above. All future salary and divs from the point I buy the property can be invested and earn interest.

Again ... am I missing something?