Close company or make company dormant

[wantacontract]

Hello All,

Just taken a a one year permie contract only 30 mins away from home.

Have around 50k in the company, my problem is to either:

1. Close the company down and take the dosh.

2. Leave it dormant.

Quite likely to contract again after my year long permie contract.

I am looking to buy a house in August this year, and the cash would be a nice deposit.

Thoughts please. I am VAT registered and all that.

[norrahe]

Speak to your accountant and they will tell you the best option.

[MPwannadecentincome]

A one year permie contract - why not ask them to pay you as a contractor if its only for 1 year? Even if the contract was not IR35 compliant you would be better off?

[JoJoGabor]

I have gone permis for the moment as I couldnt find a contract. I need an answer to this as well, but I have deregistered for VAT just so I dont have to do a return every 3 months, and done nothing else. Do you have to do anything to declare your company as dormant or is it just that .. dormant?

[wantacontract]

seeing the accountant next week.

Have made the decision to close.

I am going to be working in a council = zero chance of convincing them to pay me in contractor moolah.....

[Ivor Bigun]

seeing the accountant next week.

Have made the decision to close.

I am going to be working in a council = zero chance of convincing them to pay me in contractor moolah.....

You're doing the right thing.

IMO GB will soon remove the tax efficient option.

There is no point in keeping money in a company account (unless you want to risk losing it all)

[FarmerPalmer]

tell HMR&C for CT, PAYE and VAT
tell companies house

I was dormant for 7 years before starting up again 18 months ago.