ButtermilkJa
Registered User
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- 660
Is it possible to simply move company money from profits into share capital? Is there any advantage/disadvantage to this? What are the tax implications?
For example, I am the director and owner of my own Ltd. Co. If I have €25k profit after year 1, can I move this into share capital and then pay myself dividends each year? If so, how would I go about releasing the money if I needed it in the future?
Or is this just a crazy idea. Am I better off just paying CT and leaving it in the bank?
I am aware that putting it into a pension is probably the most tax friendly way of taking money from a company but for various reasons I'm not ready to start a pension right now.
This is just a thought in my head right now and obviously I would consult my accountant before doing anything. I'm just not 100% up to speed on how the area of share capital is dealt with and wanted a heads-up really.
For example, I am the director and owner of my own Ltd. Co. If I have €25k profit after year 1, can I move this into share capital and then pay myself dividends each year? If so, how would I go about releasing the money if I needed it in the future?
Or is this just a crazy idea. Am I better off just paying CT and leaving it in the bank?
I am aware that putting it into a pension is probably the most tax friendly way of taking money from a company but for various reasons I'm not ready to start a pension right now.
This is just a thought in my head right now and obviously I would consult my accountant before doing anything. I'm just not 100% up to speed on how the area of share capital is dealt with and wanted a heads-up really.