Ignore everyone giving you you proper advice you don't want to hear. Sounds good, go for it.
P. S. What are you going to be doing once you've shut the company?
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Previously on "Capital Gains Tax / Enterpreneur Relief - Stopping after 2 years"
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Dividends
Have you spoken to your accountants?
Presume you've filed your last year's self assessment and accounts with HMRC? Also, paid higher rate on your dividends?
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Originally posted by candy View PostBut that's the point...
The NWV web ui allows removing dividends and reassigning them as director loans, with 1 ciick of a button.
I'm just wondering up to what point CGT tax + entrepreneur relief tax will be lower than paying plain dividend tax.
My advice: learn the lesson, and plan better in future.
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Originally posted by candy View PostBut that's the point...
The NWV web ui allows removing dividends and reassigning them as director loans, with 1 ciick of a button.
I'm just wondering up to what point CGT tax + entrepreneur relief tax will be lower than paying plain dividend tax.
This means if you suddenly turn round and say the dividends were loans not only will your accountant and liquidator refuse to deal with you unless they are equally dodgy, HMRC will be interested in your affairs.
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But that's the point...
The NWV web ui allows removing dividends and reassigning them as director loans, with 1 ciick of a button.
I'm just wondering up to what point CGT tax + entrepreneur relief tax will be lower than paying plain dividend tax.
Leave a comment:
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Good luck explaining those "director's loans" Put it this way, I wouldn't want to be you, under investigation.
But, the short answer is "yes", you might've been better off, had you met the requirements for a capital distribution (TiS) and for the ER rate of CGT. Note that you can no longer take a capital distribution if you plan to engage in the same or a similar trade or activity within two years of closure. Permanent employment is thought to be OK.
Anyway, all of this is hypothetical. You've made the dividend payments. You won't be able to prove they weren't dividend payments. Too late.
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Capital Gains Tax / Enterpreneur Relief - Stopping after 2 years
I've made around £100k in the first year and £60k in the second year, there estimates are probably off by quiet a bit.
But I've paid myself a small salary and a dividend.
Now that I'm closing my company... wouldn't it be better to replace the dividends by loans so that I pay capital gains tax with entrepreneur relief on that part instead of dividend tax?
I can still delete my dividends in the online user interface, just wondering if it would safe me money doing it that way.Tags: None
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