Closing limited company & taking up PAYE role

C

companyman

Guest
Hi,
My wife & my self have a limited company, we're both directors, which employs myself, this company has traded from 2002 to july 2011, I now entent to take up a paye role form mid July 2011 on ward. Company assits include one car, bought in 2007 worth 9-12k Euro approx.
What are the best options when closing a company & how can I get the most money out for myself, note i have no company pension. I'll have to sell the car & deposit the monies in the company account, also there should be another 5-7k in the account already.

Please advise
thanks..
Companyman
 
It sounds like (assuming no liabilites) that you should look at the voluntary strike off proceedure.

The company would need to have no assets or liabilities at that time, so any excess funds would have to be taken out of the company either by way of dividend or salary (with PAYE paid).

The car, could be taken as a dividend ex-specie, (assuming reserves are such that allow you to take a dividend) or you could buy it from the company (if you wish to keep it).

The strike off proceedure is very simple, once you are up to date with the Revenue.
 
Although the voluntary strikeoff is cheap, if you pay the €16k as salary or dividends, you will be subject to tax and charges on these at 50%, assuming your income is taxable at the top rate. Read more about voluntary strike-off here: http://www.askaboutmoney.com/showthread.php?t=134118

If you have around 16k in assets and do a voluntary liquidation, the net proceeds after liquidation costs will be subject to CGT at 25%. As you have no creditors, the liquidation should be very cheap to do.

Take professional advice, although that might use up most of the tax savings.

Brendan
 
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