My client has closed her company with. 55k of dividends in final accounts last year but now wants to see is she can reduce her tax bill . Two months before it closed it has 20k, can this be classed as capital or will this trigger an enquiry. If she reinstated the company through the courts what happens to the money taken out. Does this need to go into SElf assessment or can she say earlier costs paid were actually dividends reducing the final bill to 33k. She's a young mum and in a real state about this so any advice would be good. Thank you!
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Closing company cost effectively
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Your client??
What are you when you're at home?
(and your answer will influence where I put this thread...)"I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank... -
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If you're wanting to change history and restate accounts so that the tax bill is lower I'd say HMRC would have a field day.
A capital withdrawal would happen at the point of closure, you can't change a dividend to a capital distribution at a later date - and if you have over £25k then you need a formal liquidation in order to allow for such a large capital withdrawal.
The client should have got proper advice at the time, it's too late to liquidate if the company is closed and has already paid out all funds in dividends.Comment
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Originally posted by Joanne View PostShe's a young mumComment
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Originally posted by Joanne View PostMy client has closed her company with. 55k of dividends in final accounts last year but now wants to see is she can reduce her tax bill . Two months before it closed it has 20k, can this be classed as capital or will this trigger an enquiry. If she reinstated the company through the courts what happens to the money taken out. Does this need to go into SElf assessment or can she say earlier costs paid were actually dividends reducing the final bill to 33k. She's a young mum and in a real state about this so any advice would be good. Thank you!
Looks like the accountant may have missed a trick, but from here she should pay the tax, and if she really wants to, take professional legal advice and see if she can sue her accountant for mis-advising her in the first place.Comment
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Originally posted by mudskipper View PostWhat difference does that make to the price of fish?Comment
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Originally posted by TheFaQQer View PostYoung mums can't get professional advice when they close their companies and take out £55k in cash. They're too busy being MILFsSocialism is inseparably interwoven with totalitarianism and the abject worship of the state.
No Socialist Government conducting the entire life and industry of the country could afford to allow free, sharp, or violently-worded expressions of public discontent.Comment
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Originally posted by Joanne View PostMy client has closed her company with. 55k of dividends in final accounts last year but now wants to see is she can reduce her tax bill . Two months before it closed it has 20k, can this be classed as capital or will this trigger an enquiry. If she reinstated the company through the courts what happens to the money taken out. Does this need to go into SElf assessment or can she say earlier costs paid were actually dividends reducing the final bill to 33k. She's a young mum and in a real state about this so any advice would be good. Thank you!Comment
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This thread is also on AccountingWeb - given there's more backstory there I think it's harsh to blame Joanne as her client seems to have acted without advice and off her own back when closing the company.Comment
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