Hello,
I and my wife are the Directors of a Limited company. I am the sole worker, being a consultant.
With COVID I'm unlikely to generate any business for the foreseeable future so am taking 6 months off until end of the year.
In the event that I do not work for myself after that I want to tease out an option, i.e. that once I finish out this financial year for my company I may want to essentially "mothball" the company until I retire in another 4 years time when the company will have been up and running for 10 years. At that stage I will be 65 and as i understand it will qualify for Retirement relief and can liquidate the company and - once assets are disposed of - can then get access to the remaining cash once any liabilities including taxes have been addressed.
There will be no income, staff wages, dividends or expenditure(except for a few small items like mobile phone costs). The company has no borrowings or other liabilities and all Tax is paid to date and will be for this Year. I will not be drawing any salary or making any further Pension contributions post this company Financial year.
The Company has Cash of ~€1.2m and carries out business in the Pharma sector. There is no premises and only some minor office equipment related assets which by then will be fully depreciated.
My questions are;
1. What Returns do I need to make re; Tax and CRO for each of the 4 future years for which I will not trade to remain compliant.
(assume I won't trade again for purposes of this Q). There will be no income, staff wages, dividends or expenditure (except for a few small items like mobile phone costs). The company has no borrowings or other liabilities and all Tax is paid to date and will be for this Year. I will not be drawing any salary post this company Financial year.
2. Do I have to have Accounts generated for the non trading Years ?
3. Can I do the Returns myself instead of employing an accountant and therefore avoid these fees ?
4. When I get to the 10 year stage I am happy to then go back to my accountant and get her to process the formal Liquidation. ?
5. Is there any Legal advice/formalities that I will need to employ to get a Liquidation ?
6. Is there anything else I need to be thinking of ?
7. If I were to take up a PAYE role outside of my own company with another company would this is an way affect the above ?
Appreciate any help. Thank you.
Charles
6. Is there anything else I need to be thinking of ?
The annual CRO and ROS filings you can do yourself.
Are you both shareholders?
what age will your wife be at your 65?
read this
My concern would be the cost of liquidation
so can you use strike off and still avail of RR?
All I know about tax is that I pay it.
You really need to consult with a Tax Expert on all of the different options open to you, ranging from tax issues such as Entrepreneur Relief to Retirement Relief combined with pension planning opportunities. Each type of CGT Relief have stringent conditions attached to them.
You may avail of higher tax free CGT thresholds if you decide "gift" the shares in your business to one of your children.
You need to work "full time" in the business to avail of certain CGT reliefs.
You also need advice on where to invest the cash of €1m+ until you are ready to liquidate etc For example, the company could invest in property which you could distribute in specie to yourself in a liquidation.
A Members Voluntary Liquidation, provided all assets are converted to cash, would currently cost approx. €5,000 + VAT.
Jim Stafford
Is he able to do the CRO and ROS returns himself? I understood that for a Limited company you had to have an Accountant to send in the returns.The annual CRO and ROS filings you can do yourself.
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