Originally posted by Clare@InTouch
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What is the best way to take money out from the company bank account?
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Originally posted by Clare@InTouch View PostThere is no problem at all in gifting shares to your spouse and sharing dividends, provided you are married when the transfer takes place and the shares hold full voting rights (so are not purely a right to income).
If you're not married when you gift the shares or they are non-voting shares, you have a massive problem should HMRC come looking.Comment
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Originally posted by ASB View PostClare, would it be a permanent settlement or would it cease to be a settlement on a subsequent marriage?
You could perhaps argue though that a subsequent marriage would reduce the chances of you investigated but it doesn't change things.Comment
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Originally posted by ASB View PostClare, would it be a permanent settlement or would it cease to be a settlement on a subsequent marriage?
The only way to correct it would be to issue new shares after marriage, of a different class, and only pay out on the new shares. You could close the company, but that in itself highlights you to HMRC and they may then notice the original settlement.Comment
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Hi all,
"Money saves in the company can be paid into to your personal pension up to certain limits, and then withdrawn at a much lower tax rate when you close provided you're entitled to Entrepreneurs Relief"
What are the limits? When can I withdraw the money out? As soon as I close my company down or do I have to wait till retirement?
How can I find out if I am entitled to Entrepreneurs Relief?
"You could take a director's loan of £10k and repay it before interest and tax become due, and invest that."
How long can I take the loan out for before interest and tax become due?
I do live with my partner. Can i transfer dividends and salary to himself as well? Will this affect his tax return? I.e pay more back to HMRC because he has another source of income?
Thanks!Comment
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Originally posted by kesm View PostHi all,
"Money saves in the company can be paid into to your personal pension up to certain limits, and then withdrawn at a much lower tax rate when you close provided you're entitled to Entrepreneurs Relief"
What are the limits? When can I withdraw the money out? As soon as I close my company down or do I have to wait till retirement?
How can I find out if I am entitled to Entrepreneurs Relief?
"You could take a director's loan of £10k and repay it before interest and tax become due, and invest that."
How long can I take the loan out for before interest and tax become due?
I do live with my partner. Can i transfer dividends and salary to himself as well? Will this affect his tax return? I.e pay more back to HMRC because he has another source of income?
Thanks!
You can pay into a pension via the company, up to £40,000 a year. You may be able to use prior year's entitlements if the scheme existed back then. Talk to an IFA - your accountant can recommend one if necessary.
When you cease trading and close a company you can take any final money as a capital gain, in most circumstances. You can close a company at any time, you don't need to wait until you retire. You must be ceasing to trade though - you cannot close the company then open a new one doing the exact same thing. Talk to your accountant on that one.Comment
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Originally posted by kesm View PostWhat are the limits?
Originally posted by kesm View PostWhen can I withdraw the money out? As soon as I close my company down or do I have to wait till retirement?
Originally posted by kesm View PostHow can I find out if I am entitled to Entrepreneurs Relief?
Who can claim relief?
Entrepreneurs’ Relief is available to individuals and some trustees of settlements, but it is not available to companies or personal representatives of deceased persons or in relation to a trust where the entire trust is a discretionary settlement. Page 6 gives more details of the qualifying conditions for trustees of settlements.Originally posted by kesm View PostHow long can I take the loan out for before interest and tax become due?
Originally posted by kesm View PostI do live with my partner. Can i transfer dividends and salary to himself as well?
You can give him shares in the company. That would (in all likelihood) amount to a settlement which is taxed because you are not married.
You can sell him shares in the company. That would be a settlement but one which may not require tax to be paid.
Gifting or selling shares between unmarried partners requires careful planning and execution. I know of only one person who has done this - everyone else I know who has considered this has walked away.
Originally posted by kesm View PostWill this affect his tax return? I.e pay more back to HMRC because he has another source of income?Comment
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