closing down my limited company and leaving the uk

[kienast]

Hello.
I have been working as an IT contractor for 2.5 years and I have now left the country .
I have approx. 60k on my company bank account.

What is the best way to withdraw all this money from the company account ?

What are the risk of not paying corporation taxes etc ......

[DiscoStu]

Hello.
I have been working as an IT contractor for 2.5 years and I have now left the country .
I have approx. 60k on my company bank account.

What is the best way to withdraw all this money from the company account ?

What are the risk of not paying corporation taxes etc ......

Have you asked your accountant?

[Zen Contracting]

Hello.
I have been working as an IT contractor for 2.5 years and I have now left the country .
I have approx. 60k on my company bank account.

What is the best way to withdraw all this money from the company account ?

What are the risk of not paying corporation taxes etc ......

The best approach is probably to make an application under ESC16 and have the monies distributed to the shareholders as capital rather than as a dividend.

I would not advise taking the money without paying an outstanding CT liabilities as this is commonly known as fraud!

If you'd like some help closing the company please do feel free to drop me a PM.

Regards.

David.

[THEPUMA]

The best approach is probably to make an application under ESC16 and have the monies distributed to the shareholders as capital rather than as a dividend.

I would not advise taking the money without paying an outstanding CT liabilities as this is commonly known as fraud!

If you'd like some help closing the company please do feel free to drop me a PM.

Regards.

David.

If he's left the country and ceased to be UK resident, a dividend is likely to be more tax-efficient than a capital distribution from a UK perspective but there is no way of knowing which is better from the perspective of the new jurisdiction he has moved to without asking him where that is.

The quality of accountancy advice on these boards really is deteriorating. every other response I look at is incorrect.

[ASB]

If he's left the country and ceased to be UK resident, a dividend is likely to be more tax-efficient than a capital distribution from a UK perspective but there is no way of knowing which is better from the perspective of the new jurisdiction he has moved to without asking him where that is.

The quality of accountancy advice on these boards really is deteriorating. every other response I look at is incorrect.

Risk of corporation tax exit charge now if the UK authorities decide the company has become non resident?

[I don't know if this could ever actually happen in practice though]

[kienast]

Here is the reply from my AC.

"1) You can keep the company but in a dormant state and continue to withdraw dividends. You cannot continue to take a salary as you will not be working through the company. Dividends paid to non-uk residents are not liable to any further tax in the UK, but you would have to check the the tax treatment in your country of residence. Dormant companies still have to file accounts at companies house and if you retain funds in the company which attract interest you may also have to file a corporation tax return.

2) You can close the company down and either take all the remaining funds out as a dividend after you have left the UK, or you can apply for the payment to be treated as a Capital Gain on the winding up of the company. If you are moving abroad permanently this may mean no liability for tax in the UK, but again you would need to know the tax treatment in your country of residence. "


This is clear enough to me . What is not clear is what can happens in you dont pay your CT before leaving .....

Rgds
K.

[THEPUMA]

This is clear enough to me . What is not clear is what can happens in you dont pay your CT before leaving .....

That is simply tax fraud so they could potentially take steps to recover the tax from you via the authorities at your new country of residence or try and recover it if/when you return to the UK.

[max]

This is clear enough to me . What is not clear is what can happens in you dont pay your CT before leaving .....

You wouldn't need to pay it before you leave, only when it is due.

If you choose not to pay it then you'll be hit by interest until it is paid. If you incorrectly/don't bother to complete the return, then penalties would normally be added. Potentially 100%.

CT is around 20%, so not really excessive.

[Nom de Plume]

That is simply tax fraud so they could potentially take steps to recover the tax from you via the authorities at your new country of residence or try and recover it if/when you return to the UK.

What would happen if, for example, he/her/it was to charge their company some hefty professional fees before the CT was due, leaving nothing left to pay the CT with?

[THEPUMA]

What would happen if, for example, he/her/it was to charge their company some hefty professional fees before the CT was due, leaving nothing left to pay the CT with?

In all likelihood those expenses would not be allowable for CT purposes by virtue of them not being incurred for the purposes of the trade.

And even if they were allowable, they would be taxable in the hands of the recipient so you would be swapping one liability for another, although I guess it is possible that the receipient would not be liable to UK tax if they have ceased to be UK tax resident.