Originally posted by Lance
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Retained Earning in Limited Company and ADS"
Collapse
-
-
Originally posted by NotAllThere View PostNot all members here are in IT, and it's question about using your ltd co to buy property.
Hence my suggestion.
Leave a comment:
-
Originally posted by Lance View PostI’m not sure an IT contractor forum can help an accountant with a non-IT related question....
Leave a comment:
-
I’m not sure an IT contractor forum can help an accountant with a non-IT related question....
The normal first suggestion is to see what your accountant advises but I guess that’s you?
Try one of the accountancy forums, or, as you’ve already identified you’ll need a solicitor, go straight there.
Leave a comment:
-
Retained Earning in Limited Company and ADS
Hi All,
I am currently facing two situations and I was wondering if I could possibly combine both of them together to achieve what I am looking for.
Situation 1:
I have own a Limited Company from my time as a Accountancy contractor but it has been sitting inactive from Dec 2019 since I got a new role as a PAYE contractor. I do have £56K worth of retained earning where I am thinking of going through a MVL as the most cost-effective way to extract this.
Situation 2:
I am in the fortunate situation where I own my own flat and I am in the process of buying a new house. I plan to keep the flat and as I live in Scotland I am liable to Additional Dwelling Tax ("ADS"). Even with the very recent change to the LBTT tax rules + ADS, my tax charge could be at least £13k.
Combine:
Is it possible to firstly change the services of my limited company from accountancy to property. Use the retained earnings from my property limited company (it won't be all of £56k as I need to keep some back for 19/20 corporation tax) to purchase my current flat. And thus being able to extract my retained earning without paying tax. (will of course incur solicitor fees)
As the flat is no longer in my name but the name of my property limited company I will avoid paying ADS. In the long run I do plan to rent out my flat and I believe there are potential tax savings if it was rented out as a property limited company.
Has anybody encountered a situation like this or is anybody able to provide any advice please?
Alternatively can someone recommend a financial adviser/planner preferably based in Scotland that I could talk this through with?
Many thanks in advanceTags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: