£100 capital -- reduce it to £1 ?

[kingcook]

I've gotta ask...

Why?

It's all part of the learning experience.

Besides, there's f-all on TV and i've already visited the Playboy website tonight.

[prozak]

I've gotta ask...

Why?

I could understand if you setup with £10k and didn't realise you could do it with £1.

But £100 or £1 = not worth the effort.

Ive got £100 as I've got 100 shares. I increased this from £1x1 when I wanted to gift some shares to wifey.

[Wanderer]

The current procedure is outlined here:

An optional new route for private companies to reduce share capital | Business Link

kingcook, just take the £100 back from the company and account for it as a director's loan if it bothers you. And next time, ask an accountant for advice before you setup the company.

[ASB]

The £100 is the very first bit of money i put into the company. It was to buy 100 shares at £1 each.

If possible (and easy enough) i'd like to just have 1 share still equalling 100%. Does that make sense? It kinda does to me

Why is the £99 so important? It's better in my pocket rather than sat in my business account until the day i die.

Well, yes. So you want to reduce the paid up capital to £1 and return the other £99. It can be done. Though trying to maintain the retained funds at £1 could be tricky. It seems likely you will (or at least should) always have distributable reserves for solvency purpose, so you could achieve much the same affect by monitoring the capital accounts and paying extra dividend to just maintain the £100 or so. This would at least give you a small cushion between no distributable reserves and technical insolvency.

The current procedure is outlined here:

An optional new route for private companies to reduce share capital | Business Link

[Waldorf]

Why is the £99 so important? It's better in my pocket rather than sat in my business account until the day i die.

You would get the money when the company is closed - for £99 I think I would just wait until that day.

[xoggoth]

Quite! I could buy 100 things at my 99p shop with that!

Given the small sum I very much doubt if anyone would object or even notice if you just took the money out and changed the share issue on your next annual return. NAA of course.

PS You should start getting used to wasting time sending a lot of crap to Companies House and HMRC. Employing civil servants and accountants to do totally pointless tasks is what a UK business is for.

[kingcook]

If that is indeed what happened then yes, it is simply a loan.

However I think it is more likely the the OP bought 100 shares in his company @ £1. Any repayment of this will involve as Xog implies a capital restructuring and the repayment will be a capital distribution. And a world of form filling.

Though in either event why 99 quid is so important is a bit unclear.

The £100 is the very first bit of money i put into the company. It was to buy 100 shares at £1 each.

If possible (and easy enough) i'd like to just have 1 share still equalling 100%. Does that make sense? It kinda does to me

Why is the £99 so important? It's better in my pocket rather than sat in my business account until the day i die.

[ASB]

According to your original post, you paid £100 of your own money into the company to give it some capital ie you loaned your company 100 quid. You are now wanting upto 99 quid back.

Write yourself a cheque for 99 quid, record it in your accounts (you do know what they are do you?) as repayment of your capital loan.

Course you could have asked an accountant the same question but then we both know he \ she would have charged you about 99 quid for the advice I gave freely

If that is indeed what happened then yes, it is simply a loan.

However I think it is more likely the the OP bought 100 shares in his company @ £1. Any repayment of this will involve as Xog implies a capital restructuring and the repayment will be a capital distribution. And a world of form filling.

Though in either event why 99 quid is so important is a bit unclear.

[BolshieBastard]

Gee thanks

I mean, how would i record this £99 coming out of my company bank account? It's not salary, it's not an expense, it's not a dividend, it's not a director loan. So what is it?

Any would i have to arse about with any shares paperwork?

According to your original post, you paid £100 of your own money into the company to give it some capital ie you loaned your company 100 quid. You are now wanting upto 99 quid back.

Write yourself a cheque for 99 quid, record it in your accounts (you do know what they are do you?) as repayment of your capital loan.

Course you could have asked an accountant the same question but then we both know he \ she would have charged you about 99 quid for the advice I gave freely

[kingcook]

Do you mean you paid for issued shares? Not sure whether £1 or £100 makes any difference but you can reduce share capital by delivering a lot of guffy declarations to Cos Hse as it says in item 6 here.

http://www.companieshouse.gov.uk/about/pdf/gba6.pdf

Thanks, i'll have a read through this

[kingcook]

Erm, write a cheque to yourself for £99, perhaps?

Gee thanks

I mean, how would i record this £99 coming out of my company bank account? It's not salary, it's not an expense, it's not a dividend, it's not a director loan. So what is it?

Any would i have to arse about with any shares paperwork?

[xoggoth]

Do you mean you paid for issued shares? Not sure why it matters if it's £1 or £100 but you can reduce share capital by delivering a lot of guffy declarations to Cos Hse as it says in item 6 here.

http://www.companieshouse.gov.uk/about/pdf/gba6.pdf

[BolshieBastard]

Hi,

I put £100 capital into my limited compnay bank account as capital, when i first started it up 18 months ago.

How easy is it to reduce this to say £1?

I am 100% shareholder.

Erm, write a cheque to yourself for £99, perhaps?

[kingcook]

Hi,

I put £100 capital into my limited compnay bank account as capital, when i first started it up 18 months ago.

How easy is it to reduce this to say £1?

I am 100% shareholder.