sell shares

[THEPUMA]

financially I'd be a bit better off keeping same ltd co if my wife could take all the money..and wouldnt have the worry of capital gain being challenged as paye if ir thought i was phoenexing!

Yes I would do that ie transfer the shares to your wife and pay the dividend pre and post 5 April as necessary to keep the income tax liability to nil.

[slogger]

why bother when you can set up a newco for under 50 quid?

financially I'd be a bit better off keeping same ltd co if my wife could take all the money..and wouldnt have the worry of capital gain being challenged as paye if ir thought i was phoenexing!

[v8gaz]

why bother when you can set up a newco for under 50 quid?

[slogger]

Just close down and use esc16. if you start contracting again then open another ltd. You won't be caught with the 'phoenix' company thing as you are not currently planning to open another as you are employed. If you end up being laid off and go back to contracting, how could you have known that, right?

cheers - thats basically what I'm concerned about - didnt want the taxman to think I was phoenix-ing ! I've not contracted since last Oct and hopefully should be ok - but dont really know at the moment!

[MrRobin]

Just close down and use esc16. if you start contracting again then open another ltd. You won't be caught with the 'phoenix' company thing as you are not currently planning to open another as you are employed. If you end up being laid off and go back to contracting, how could you have known that, right?

[slogger]

sorry - I'm sure this has been answered before somewhere but cant find it!
I stopped contracting last year (boo I hear you cry!) - I have about 60k left in company, no VAT to pay but about 24K corp tax to pay.

I was thinking of closing ltd co down and using esc16 (aware of changes in march) - would mean between myself and wife only pay 10% tax on ~£16000 (approx 10k cgt allowance each)...

however (!) if I wanted to keep my Ltd company and go back contracting at some point is it possible/worth it to give my wife my shares in the company and she takes the remaining cash out next tax year (she has no other source of income)- I'm paying 40% + tax on paye so not worth me taking dividends/income from company...then if/when i go back contracting to get the shares back from my wife - I believe gains between married partners arent taxable?

Accountant says he'll think about it and get back to me in feb when he's less snowed under but thought I'd get opinions now,
many thanks!
Also if its relevant its not my intention to go back contracting - just current company making the usual cut backs so wanted to be ready just in case!