tax advice

[dotnet]

I've been contracting for a few years via my own ltd company and over the years I've only taken limited dividends / salary. I've built up some cash in my business account which I now need to get my hands on.

What's the most tax efficient way to withdraw this capital from my ltd co account to my personal account ?

[Wanderer]

What's the most tax efficient way to withdraw this capital from my ltd co account to my personal account ?

If you've finished with your company and aren't going to start a new one straight away then you can ask your accountant to close the company and apply for ESC-C16.

[Craig@Clarity]

I've been contracting for a few years via my own ltd company and over the years I've only taken limited dividends / salary. I've built up some cash in my business account which I now need to get my hands on.

What's the most tax efficient way to withdraw this capital from my ltd co account to my personal account ?

If you're married and trust your spouse, you could potentially make them a shareholder and pay dividends to them if they have some basic rate tax allowance to use up.

[Taxless]

What does "limited" mean?

You say you have taken "limited dividends/salary". Do you have any basic rate entitlement left this year (total £42,475 this year with personal allowance) after your normal dividend salary.

If so take some more dividends but remember that your actual dividend for tax purposes is the amount you receive in your hand + 1/9th, i.e. dividend £9 + £1 = £10 gross. £10 @ 10% dividend tax rate = £1 tax.

If the sum was substantial, there are still other more "exoctic" extraction methods available from reliable providers.

[LisaContractorUmbrella]

You say you have taken "limited dividends/salary". Do you have any basic rate entitlement left this year (total £42,475 this year with personal allowance) after your normal dividend salary.

If so take some more dividends but remember that your actual dividend for tax purposes is the amount you receive in your hand + 1/9th, i.e. dividend £9 + £1 = £10 gross. £10 @ 10% dividend tax rate = £1 tax.

If the sum was substantial, there are still other more "exoctic" extraction methods available from reliable providers.

Could you be more specific?

[Taxless]

Specific

It produces potential tax liabilities as low as 0.07%, with no ongoing fees or benefit in kind charges, but does require £100,000 of profits.

[LisaContractorUmbrella]

It produces potential tax liabilities as low as 0.07%, with no ongoing fees or benefit in kind charges, but does require £100,000 of profits.

I had a funny feeling it would be something like that

[rd409]

It produces potential tax liabilities as low as 0.07%, with no ongoing fees or benefit in kind charges, but does require £100,000 of profits.

Does it require buying a canoe as well?