Self Employed and Wants to make myself redundant

U

UFOman

Registered User
Messages
38
hello Folks, I am self employed and my company has alot of cash in its account that i would like to take into my own account.

Can i make myself redundant and pay myself an unlimited sum?

is there odd rules for self employed people making them selves redundant?
 
UFOman said:
hello Folks, I am self employed and my company has alot of cash in its account that i would like to take into my own account.

Can i make myself redundant and pay myself an unlimited sum?

is there odd rules for self employed people making them selves redundant?
Click to expand...

Can you be self-employed and be a company at the same time?
 
tis my own Limited company and there is alot of cash in the current account that i need personally and can't afford all the tax,, so was wondering would redundancy be a tax free idea ?
 
Given your "understanding" of the issues involved and the fact that there is a significant amount of money involved you really should talk to an accountant.
 
yes I totally agree Derek, but i would like some facts before i approach him !, i find my account will just agree with everything,
 
Are you self employed or are you a proprietory director in a Limited comany

or

have you 2 seperate businesses - Self Employed & Company?
 
it is the limited company i am trying to get the money out of,

i own the limited company, and i also have a VAT number in my own personal name
 
you are probsably class s - so not entitled to redundancy

Proprietory directors used to be entittled to a tax free termination payment -- not sure if this is still the case

you really should get a better accountant :)
 
I was exactly in your position a few months ago. I owned a small company Sole shareholder and director.
Closed it but had 200k in the bank account after all debts,tax, staff redundancy paid.
Now , there is a sort of redundancy for people in your position. Windup refers to it - it is tax-free "termination of employment payment". The rules are a bit complicated but -very roughly - the amount you can take out depends on the number of years you've had the company/been a proprietory director.

However, the company does not get back any refund from the govnt -unlike the situation where you make your staff redundant in which case the company gets back 60% of the statutory redundancy payment.

You should google "termination of employment payment." Anyway I took out 60k tax-free which was allowed (Revenue have to authorise it).

But I still had 140k in the company . And this was my money- exactly the amount I put in this company nine years ago. But ,legally, I could not just take it out .

You just cannot take out money from your company. The company has to be liquidated - and I had to go through a members voluntary liquidation in order that the company was properly closed and the money distributed to the shareholders (i.e. me). Again ,google "members voluntary liquidation."

Of course, if you take out money on the bais of the termination payment -and there's nothing left in the company then you can quickly and cheaply get bthe company stricken-off -again,google "strike-off".

You cannot strike-off a company if it has debts or assets.
In my case I could not get my company stricken off because it had one big asset - cash.

Now, after studying a bit about this on google (check you arev looking at irish sites) and some of the posts in AAM you then do what previous posters advise - and get a good accountant.


The important thing is -just dont take money out of the company even if it is "yours".
there will be tax implications.
 
I forgot to mention . If after getting your termination payment and paying all debts there is more money in the bank than you originally put in then you'll pay CGT.
Again this needs studying as there are various rules.

All the info I have given is based on the supposition that you'll close the company.
 
You must log in or register to reply here.
Back
Top