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  • FIRST POST
    • ThemeOne
    • By ThemeOne 11th Oct 17, 2:25 PM
    • 1,115Posts
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    ThemeOne
    Should I Wind Up my Company?
    • #1
    • 11th Oct 17, 2:25 PM
    Should I Wind Up my Company? 11th Oct 17 at 2:25 PM
    I have worked for many years via my own limited company but am now thinking of retirement, apart from one small client, whose work is likely to be infrequent.

    There is a fair bit of cash in the company, both in a current account and invested in funds, and my initial thought is to continue paying myself a small salary until the money runs out (this would be quite a few years).

    The advantage to me is this arrangement involves changing nothing, and it leaves the company in existence in case I want to use it for some other kind of venture.

    My question is would some other arrangement be better? Would what I am proposing raise a flag with HMRC, for instance - since I would presumably be returning a loss each year, which I have never done before. Would there be an advantage to winding up the company?
Page 1
    • 00ec25
    • By 00ec25 11th Oct 17, 4:13 PM
    • 5,002 Posts
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    00ec25
    • #2
    • 11th Oct 17, 4:13 PM
    • #2
    • 11th Oct 17, 4:13 PM
    what does your accountant advise?

    running down the balances in a company is a fairly standard option, but there are others..
    https://www.contracteye.co.uk/close-limited-company-options.shtml
    Last edited by 00ec25; 11-10-2017 at 4:16 PM.
    • ThemeOne
    • By ThemeOne 11th Oct 17, 4:43 PM
    • 1,115 Posts
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    ThemeOne
    • #3
    • 11th Oct 17, 4:43 PM
    • #3
    • 11th Oct 17, 4:43 PM
    That's useful thank you - at least it reassures me what I'm thinking of doing is not so unusual.

    I will think about the other options, but leaving things as is does seem easiest and I have no need of the funds beyond the monthly salary drip-feed.
    • bris
    • By bris 11th Oct 17, 8:39 PM
    • 6,918 Posts
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    bris
    • #4
    • 11th Oct 17, 8:39 PM
    • #4
    • 11th Oct 17, 8:39 PM
    Assuming you tax returns are up to date you can just take out the funds as dividends. Speak to your accountant, there are ways to get the money out tax free after winding it up.


    If you take it as a salary you will have to pay tax again as PAYE, why bother as I assume your company has already paid corporation tax.
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