Value in closing down company, and starting a new one?

Legacy_user

Hi, I have a limited company and am a contractor. I am due to finish my current contract this month and am thinking of taking a break.

Is it worth continuing paying accountants £115 each month and keeping company running even though I'm not working?

Or is there more value in closing down the company and just starting a new one when I next take another contract (looking at December/January time depending on market and what's out there).

If you close down your company are you still required to complete P11D, etc or is there no more paperwork to complete during this time?

Working out the best option really as previously always kept company open and just payed myself a salary each month..

[STRIKE]Also is it straightforward taking the money out of the company once closed?[/STRIKE] Any advise and opinions appreciated..

glider3560

Summer01 wrote: »

Also is it straightforward taking the money out of the company once closed? Any advise and opinions appreciated..

Can't comment on the rest of the post, but once a company is no more, all its assets (including cash in the bank) become bona vacantia. You would need to take money out of the company before it is struck off/dissolved.

System

Hi glider3560, that was really bad wording on my part - what I was meaning was is it a straightforward thing to take out the money at the time of closing, ie do you end up paying a huge amount of tax and there it's better to leave the company open and take out a monthly salary..

Although you're paying an accountant a monthly fee anyway if you leave it open..

Pennywise

Just negotiate a lower fee with the accountant for the months you have no transactions. Most contractor-accountant firms have some form of discount for not working or dormant periods, we certainly do - our discount is 1/3 reduction for non working months and 2/3 reduction for any truly dormant months (i.e. no transactions at all, not even payroll). Just ask them and if they won't, perhaps you should move to another accountants who do!

System

Thanks Pennywise, I had no idea some accountants did this - my previous ones certainly never told me if they did and I was with them for approx 3 years. Will see what current one says, I have been with them a year.

System

Pennywise wrote: »

Just negotiate a lower fee with the accountant for the months you have no transactions. Most contractor-accountant firms have some form of discount for not working or dormant periods, we certainly do - our discount is 1/3 reduction for non working months and 2/3 reduction for any truly dormant months (i.e. no transactions at all, not even payroll). Just ask them and if they won't, perhaps you should move to another accountants who do!

I asked my accountant via email if they did this, however they didn't answer the question! They said it costs £360 to close down the company and £150 to open a new one when I want to.

Are there any benefits in closing down a company in order to get your money out? Or is it just the same as leaving it open and paying an accountant when you're not working... I will definately ask my accountant this aswell to see what their answer is.. The seemed to think it was a good move financially to close it down.