Hi
We are 2 prop. directors selling the company to our employee keeping the same co. name
Do I issue 3 p45s on the same day i.e does the employee resign and then become co. director and how do I inform Revenue I am not responsible for P30s etc.
If all drs. and crs. paid can we take cash left or is it through salary
Can the new director just change the name on the existing bank a/c (while keeping co. name)
any suggestions appreciated.
Askaboutmoney is not a substitute for paid professional advice on a topic as complex as this. You need accounting, tax and legal advice.
A company is a distinct legal entity.
Ownership of the shares in a company is separate from employment in the company.
The trading name is a separate issue from the company name
There would be a number of ways of "selling the business"
1) The shareholders can simply sell the shares in the company. Nothing else changes
2) The company can sell the goodwill and other assets. But then the buyer would pay the company and not the shareholders.
While Askaboutmoney is not a substitute for professional advice, if you want to outline what you are actually doing, you might get some pointers.
Thanks for your reply I realise we will need professional advice.
We wish to sell the co. and retire and our employee has said he is interested in buying as a going concern
Just trying to figure out where to start in changeover no.1) I presume -get right price and then resign as co. directors
but would the buyer (employee) resign as well.
Your employee is an employee of a company xyz Ltd. They will continue as an employee after they buy the shares. There is no need for them to resign.
As you are just at the planning stages, talk to your accountant now. For example, it may make sense to take much less salary from the company now as salary is usually taxed at 51%. CGT, if it applies, will be taxed at 33%. But as Joe points out, you may get retirement relief.