Small Business Savings Question

lky2k23

Looking for financial advice but not sure what professional it's best to speak to.
Having just had a newborn, my wife is taking a year out of employment, she ran a small business and has profit in the account, so we need some independent personal/small business advice.

The last IFA I visited was only looking for us to get the best return on investment, we want to know how much we can/should take out of her business etc.

It's the step before pensions/savings/investments we need.

Thanks

00ec25

what sort of business?
sole trader?
limited company?


what "advice" are you referring to ?
- tax efficiency on taking money out ? Go see an accountant
- where to invest the money for best returns? Go see an IFA

lky2k23

Limited Company.

It's kinda a mix of both we're looking for I guess.

00ec25 wrote: »

what sort of business?
sole trader?
limited company?


what "advice" are you referring to ?
- tax efficiency on taking money out ? Go see an accountant
- where to invest the money for best returns? Go see an IFA

nmn

Is she closing down her business? If so; use ER - highly tax efficient if applicable (sorry about the spaces wont let me post links)


www .gov.uk/entrepreneurs-relief


This of course depends how much cash is in the co. If its under 25k then you can DIY an informal strike off (and still benefit from ER). If it's over that, then informal strike off would mean the £ is taxed as income. That's no good. So you need to liquidate and that, unfortunately, costs a fair bit. She can pay £40k/year into her pension which (if she hasn't been maxing out) might pull it down to < 25k and grab that - if not then may be worth paying for MVL.



If she is wanting to keep the bis. and not close down, she can pay a dividend? Be sure to only declare legal divi. Are you also a shareholder? Really this kind of thing depends on so many things (hence advice to seek/pay for professional advice) - the amount you need/want, the amount in the company, if the business is being closed or not, blah blah.


This is not tax advice etc.