[Advise] Closing ltd co thread..

[Chart Accountancy]

Hello!

I wanted some advice regarding closing the limited company I get a standoffish feeling from my accountant , so wanted to verify a few things.

So my situation is as , i have about 50K pot in the company bank account. In Feb , I've moved to a permanent position. Hopefully in a couple of months , I will "attempt" to buy a house , so it would be nice to have some access to the cash in case tulips hit the fan. With perm salary pushing me over the 45K bracket easily, any withdrawals will face a 32% burn.

- As per my accountant, if i close the company, i will never be able to open another one with the same business again. So nothing regarding the possibility of a 2 year grace period to start another one. Has anything changed recently to warrant this?

Will i go back to contracting? I honestly do not know. I would be happy to ride the umbrella for a phase if i have to , but the question being , is it possible to open one about two years down the line after one gets liquidated.

- Does having a income now affect anything the MVL will return to me ( Asked the accountant the same , awaiting reply , so jumping the gun on this one)

Cheers!

If you don't need the cash yet, you can make the company dormant and keep it for awhile until you are confident that you will not need it and then you can close it down. Monthly accounting fee for a dormant company is in the region of £10+vat. If you need the cash then you can close it down and extract the remaining funds under ER if you qualify and pay 10% tax after annual exemption.

[SeanT]

It actually has been sitting steady since August last year , took a break.. landed one in Feb. I do pay about 60 odd quid to the accountant to keep it running.

Ah OK, if it was since Feb then keeping it open a bit would make sense. When's your year end? (most of what you're paying per month is actually to pay for that to be put together)

[Maslins]

- As per my accountant, if i close the company, i will never be able to open another one with the same business again. So nothing regarding the possibility of a 2 year grace period to start another one. Has anything changed recently to warrant this?

Nope! Someone very cynical might think the accountant just wants you to keep it running to keep the fees. You can start a new company immediately if you like...but any tax benefits obtained upon closure of the first one would likely be clawed back unless either 2 years had passed or you could demonstrate a plausible non-tax reason for the close down then restart.

Will i go back to contracting? I honestly do not know. I would be happy to ride the umbrella for a phase if i have to , but the question being , is it possible to open one about two years down the line after one gets liquidated.

To the best of my knowledge, yes.

- Does having a income now affect anything the MVL will return to me ( Asked the accountant the same , awaiting reply , so jumping the gun on this one)

Assuming you'd qualify for entrepreneurs relief, no. It'd be a flat 10% (after annual exemption), regardless of other income.

[rickom]

IMHO keep it open for a bit, to give you some flexibility in terms of working arrangements and getting the cash out in the most sensible way.

It actually has been sitting steady since August last year , took a break.. landed one in Feb. I do pay about 60 odd quid to the accountant to keep it running.

[SeanT]

IMHO keep it open for a bit, to give you some flexibility in terms of working arrangements and getting the cash out in the most sensible way.

[rickom]

Hello!

I wanted some advice regarding closing the limited company I get a standoffish feeling from my accountant , so wanted to verify a few things.

So my situation is as , i have about 50K pot in the company bank account. In Feb , I've moved to a permanent position. Hopefully in a couple of months , I will "attempt" to buy a house , so it would be nice to have some access to the cash in case tulips hit the fan. With perm salary pushing me over the 45K bracket easily, any withdrawals will face a 32% burn.

- As per my accountant, if i close the company, i will never be able to open another one with the same business again. So nothing regarding the possibility of a 2 year grace period to start another one. Has anything changed recently to warrant this?

Will i go back to contracting? I honestly do not know. I would be happy to ride the umbrella for a phase if i have to , but the question being , is it possible to open one about two years down the line after one gets liquidated.

- Does having a income now affect anything the MVL will return to me ( Asked the accountant the same , awaiting reply , so jumping the gun on this one)

Cheers!