Hello,
I have a very small limited company and I also have a full time PAYE job. I now want to close the limited company but I'm not sure how to do it in the most tax efficient way. There is a small amount of stock worth approximately 2000 euro and around 38000 euro in the bank. No debts. I have never taken any income from the company. My accountant has given me two options -
1. Get a liquidator which will cost minimum 3000 euro and pay capital gains tax of 33%. This will easily cost over 15,000 euro as far as I can see, which is a lot of money.
2. Take a termination payment. I don't know much about this option and he said he can't guarantee revenue wouldn't query it in the future. He said he consulted with a tax advisor and was told it would be probably ok. I don't want to do anything that could get me in trouble with revenue.
So my question is, are these my only options and is option 2 a legitimate one that anyone else has done or should I steer clear and go with the liquidator? Or are there any other ways to close the company while paying the least amount of tax possible? As far as I know I can't pay it into a pension if I wasn't taking an income all along?
I have a very small limited company and I also have a full time PAYE job. I now want to close the limited company but I'm not sure how to do it in the most tax efficient way. There is a small amount of stock worth approximately 2000 euro and around 38000 euro in the bank. No debts. I have never taken any income from the company. My accountant has given me two options -
1. Get a liquidator which will cost minimum 3000 euro and pay capital gains tax of 33%. This will easily cost over 15,000 euro as far as I can see, which is a lot of money.
2. Take a termination payment. I don't know much about this option and he said he can't guarantee revenue wouldn't query it in the future. He said he consulted with a tax advisor and was told it would be probably ok. I don't want to do anything that could get me in trouble with revenue.
So my question is, are these my only options and is option 2 a legitimate one that anyone else has done or should I steer clear and go with the liquidator? Or are there any other ways to close the company while paying the least amount of tax possible? As far as I know I can't pay it into a pension if I wasn't taking an income all along?