closing down company how to take the profit out

[AZZIK]

Hi There, A friend of mine is leaving the contracting world for a 38k job starting next month. He has contracted through a limited company for 18 months taking a total of 7k salary in this tax year, after all the tax expenses etc he is left with 20k profit in the company. The question is what is the most tax efficient way to take this money out as he is closing the company down. He will clearly be in the higher tax bracket as his salary by April willbe approx 26k.

Any advice is appreciated.

Thanks

[pmeswani]

Hi There, A friend of mine is leaving the contracting world for a 38k job starting next month. He has contracted through a limited company for 18 months taking a total of 7k salary in this tax year, after all the tax expenses etc he is left with 20k profit in the company. The question is what is the most tax efficient way to take this money out as he is closing the company down. He will clearly be in the higher tax bracket as his salary by April willbe approx 26k.

Any advice is appreciated.

Thanks

Pay himself dividends and file thier tax returns at the end of the tax year.. leave the company in dormant state just in case they want to go back to contracting later on. I'm sure there are bette ways.