MVL and paying corp tax early

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Maslins replied

29 April 2013, 14:10
Originally posted by Olly View Post

...what do you do with cheques? All go out for beers and a meal at the end of the month?

We bank the cheque into the client estate account, meaning you get a (very slightly) larger distribution.
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philip@wellwoodhoyle replied

29 April 2013, 13:03
There's a box on the CT return where you can nominate a different person to receive any CT refunds. We put in the directors' details, so that the interest is paid by cheque to the director. When we do the final accounts, we accrue for our best estimate of the interest so that it all tallies up with the figure declared for the "capital gain" which would be the cash amount of the distribution, plus asset values, plus CT interest.
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stek replied

29 April 2013, 12:48
MVL and paying corp tax early

Originally posted by northernladuk View Post

What did your accountant say?

"Next time put a file in the cake...."
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Olly replied

29 April 2013, 11:41
...what do you do with cheques? All go out for beers and a meal at the end of the month?
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Maslins replied

29 April 2013, 08:52
In short, no different.

If the interest is only a few quid, sometimes HMRC won't even bother sending it out...but at MVL Online we do get a fair few cheques from HMRC for £10-50, being interest on corporation tax paid early.

If like you suggest your salary for the tax year (ie when you start in June to 5 April) will already put you into the 40% band, then doesn't make sense to pay a salary/divis now. Only situation I can think of where it might would be if you weren't going to qualify for entrepreneurs relief...but then an MVL probably wouldn't be worthwhile anyway.
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northernladuk replied

28 April 2013, 19:19
What did your accountant say?
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Olly started a topic MVL and paying corp tax early

28 April 2013, 14:25
MVL and paying corp tax early

I'm starting a permanent job in June and I'm looking at members voluntary liquidation of my Ltd.
It's my understanding that corporation tax needs to be paid before the company can be liquidated but the CT isn't due until next year.
In the past when I paid CT a little early HMRC paid interest on the balance.
Does anyone know how it works when the company is being closed?
Thanks

P.S. I've not taken any salary or divs this personal tax year from my Ltd. The new job's in the 40% bracket. I think I'm right to say that to minimise tax I should leave it like that. What do you think please?
If I paid myself £7696 salary there would be 20% CT saving and a further 10% MVL tax to include but it would mean an extra £7696 of my perm salary is taxed at 40%.
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