Due to illness I'm having to give up contracting and I'm wrapping up the Ltd co. There will be about £18k left in the bank after all taxes are paid. I know there used to be ESC16 which allowed the cash to be distributed as a capital gain, but I'm unsure what the current situation is. Due to income tax rate issues, the preference is to pull the cash out of the business when it closes as capital rather than income, is this still possible like it used to be with ESC16? Thanks.
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Officially CUK certified - Thick as f**k. -
Provided you have less than £25k you can close and take it as capital, and your accountant can handle it for you.
More than £25k requires a formal liquidation, which isn't usually cost/tax efficient until you get past £50k. -
Are you going to be working at all once you finish contracting or retiring on health grounds? Won't that give you extra outs if you are no longer working?'CUK forum personality of 2011 - Winner - Yes really!!!!
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Aye, I would loaf it all into a pension if I were over 50 and had chance of getting near it sooner rather than later...Originally posted by northernladuk View Post"See, you think I give a tulip. Wrong. In fact, while you talk, I'm thinking; How can I give less of a tulip? That's why I look interested."Comment
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I wouldn't put it anywhere near to a pension!Originally posted by Moscow Mule View Post
I use an ISA for my investments, I know I don't get tax relief but I am not restricted what I can do with it and the money remains mine, and I can pass it to my kids etc."The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." CiceroComment
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Are you going to be working at all in the next tax year? Presuming you are already at the higher rate limit for this year, is it worth keeping the company running until the next tax year and taking the money as dividend on 6th April 2013 so there will be no further tax to pay.Originally posted by Fred Bloggs View Post
If you are going on the Disability Living Allowance, then be aware that it's not means tested so any dividend income from your company shouldn't affect your benefit (get professional advice on this though!)Free advice and opinions - refunds are available if you are not 100% satisfied.Comment
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