Closing my ltd company: help me take away the pain

**northernladuk** · 13 January 2024, 18:00

Speak to Chris Maslin at MVL Online. He's also part of Maslins accountancy so can give you both sides of the story.

What to do is highly dependant on the amounts and your personal situation so not something we can really help with.

**jamesbrown** · 13 January 2024, 19:10

Yes, you should probably take the hit and get over yourself

.

You're unlikely to do any better than 10%. If you're working through an umbrella, you're already maxing out your pension and salary/dividends probably aren't a good option either. If you have no clear use for the company in the next year or two, it is costing you to maintain it, with little upside.

Oh, and BADR won't be around forever. In fact, perhaps not beyond next April (we've been speculating for years, of course, but Labour has explicitly targeted it in the recent past).

**Unix** · 14 January 2024, 08:34

Originally posted by Elliegirl View Post

Greetings all, haven't been here for a while. I've been umbrella for nearly two years and thinking of closing my ltd company. Have to do it with liquidators due to amount involved. But then I thought of the tax hit at 10% and wondered if there's another way around it, going dormant, etc. I don't see myself getting out of IR35 contracts any time soon. What's anyone else done? Should I just take the hit and get over myself? I'm not averse to paying taxes by the way, it's just that this stings a bit...😂

You can dissolve your company for a token payment at companies house. It's called the SpongeBob method, explained on the UK business forums, but can't be done if you have a Covid BBL or major creditors as they will object.

**jamesbrown** · 14 January 2024, 11:02

Originally posted by Unix View Post

You can dissolve your company for a token payment at companies house. It's called the SpongeBob method, explained on the UK business forums, but can't be done if you have a Covid BBL or major creditors as they will object.

What part of?

Have to do it with liquidators due to amount involved.

**Eirikur** · 14 January 2024, 17:43

Closed mine last year, transferred most assets to my pension fund, so I went under the liquidators limit. Accountant that assisted with the final accounts (Gorilla) was rubbish so the whole process from initiating until actual strike off took 7-8 months

**sreed** · 15 January 2024, 09:04

Originally posted by Elliegirl View Post

Greetings all, haven't been here for a while. I've been umbrella for nearly two years and thinking of closing my ltd company. Have to do it with liquidators due to amount involved. But then I thought of the tax hit at 10% and wondered if there's another way around it, going dormant, etc. I don't see myself getting out of IR35 contracts any time soon. What's anyone else done? Should I just take the hit and get over myself? I'm not averse to paying taxes by the way, it's just that this stings a bit...😂

My ltd co is in a similar situation though not a huge amount of cash in it. My plan is to whittle it down and eventually close it.

But if I was in your place and I could get the cash out with a 10% tax hit and be done with it, I’d do that. You never know how long this low tax route to exit will be available.

**TheDude** · 15 January 2024, 10:21

Just closed mine - had about £12k in it.

Those days are gone.

**Elliegirl** · 17 January 2024, 15:30

Thanks for all comments, even from those who misunderstood, I still care about you! 😂😂
Have called in the Liquidators. Thanks Ltd Co, it was fun.

**Elliegirl** · 17 January 2024, 15:32

What to do is highly dependant on the amounts and your personal situation so not something we can really help with.
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Oh, I wouldn't say that. You were all extremely helpful.

Closing my ltd company: help me take away the pain