| Non R's - Advice On Voluntrary Winding Up Small Business 17:56 - Jul 30 with 838 views | Lblock |
I wont go into too much detail but I have an issue the great and the good of LFW may able to advise on.
My very small building business I was (am) in partnership with another has a few grand left in the trading account.
Accounts up to date to April this year
I went into business with a top fella but he's gone a bit odd -- my thoughts are extra marital stuff -- and hasnt spoken to me for months apart from asking for a few grand out of the firm. He didnt contact me when he knew I was very ill recently and that kind of nailed it for me.
I now want to close down the firm, get what he owes me out (£3k loan on strength of business profit) and what I'm owed as 50-50 of whats left. Questions!
1. Whats the quickest and cleanest way of doing this?
2. What's the most tax efficient way of getting the money out?
3. We have a couple of minor assets being mainly IT stuff I have plus two iphones - can these be "sold" for a cursory pound before killing the business?
4. Do I have to "de-list" as a Director at Companies House as it's a Limited Co?
Just putting it out there before I talk to my Accountant (who is as straight as an arrow)......!!!
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| Cherish and enjoy life.... this ain't no dress rehearsal |
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| Non R's - Advice On Voluntrary Winding Up Small Business on 23:45 - Jul 30 with 686 views | BrixtonR |
Hello mate,
One way you may be able to do it without having to go through a formal liquidation and therefore pay liquidators fees is to use what was Extra Statutory Concession (ESC 16). This will would only be possible if the capital in the business is less than 25K. If that was the case then it would cover the phones and IT stuff.
Its basically an informal arrangement that treats the money you take out as a capital gain rather than an income tax benefit. This means you may be able get the 10% entrepreneurs relief rate and use your CGT annual exemption on any distribution.
I'm sure your accountant will be well up on this as it's quite new legislation.
When the companies wound up I think you will get deregistered as a director etc
Oh yeah my understanding is that if you sold the phones to yourself at £1 then you would be hit on the difference between the market value of the phone and the £1 as a benefit in kind. As your a statutory director you get hit for benefits even if your earning less than 8.5K.
Again your accountant will know the score re this.
If your interested or just really bored  heres' a link to an article on the new rules that replaced 'ESC 16'
http://www.wilkinskennedy.com/services/tax/tax-factor/the-demise-of-esc-c16-and- |  | | |
| Non R's - Advice On Voluntrary Winding Up Small Business on 00:34 - Jul 31 with 650 views | SonofNorfolt |
Ring me if you want speak to my accountant, who will give you free advice with which you may decide that he can help you out better than the man you already have.
He's my mate first and foremost, so no bum steer here. |  | | |
| Non R's - Advice On Voluntrary Winding Up Small Business on 07:06 - Jul 31 with 580 views | Lblock |
Cheers lads.
Brixton - good steer there
Mel - I may well take you up on that one. My accountant is damn good but not, shall we say, that "colourful or creative". | |
| Cherish and enjoy life.... this ain't no dress rehearsal |
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| Non R's - Advice On Voluntrary Winding Up Small Business on 09:03 - Jul 31 with 520 views | hoof_hearted |
If there's less than £20k or so of assets and money in the bank after all debts have been paid then just sit down TOGETHER and draw up a list of who gets what and while he's there get him to sign a DS01 form (free download from companies house) to start the winding up of the company. Cost a £10 companies house fee only.
But don't do that winding up unless you're sure all the assets are out of the company, bank accounts closed and all the debts are paid or else the Queen nicks them.
If you both have no other capital gains in the tax year then nothing to report to anyone and all legal! |  | | |
| Non R's - Advice On Voluntrary Winding Up Small Business on 09:17 - Jul 31 with 506 views | ElHoop |
The company needs to do its accounts up to whenever it ceases trading and to pay any Corporation Tax due on any profits up to that point. Whatever is left by way of assets can be distributed as a dividend or as a capital distribution as mentioned above. Which way you do it depends on the circumstances but dividends are already taxed at the basic rate so really your accountant is the best person to do the juggling around to decide which is the best way to go about it. You can't unilaterally decide to wind up the company - if there are two directors then you must both agree and sign the relevant document. The other bloke might want to pay you what you are owed and carry on without you. |  | | |
| Non R's - Advice On Voluntrary Winding Up Small Business on 09:43 - Jul 31 with 480 views | dsr_burnley |
The only quick and easy way of doing it is with the consent of the other man. Without agreement, it's bound to be messy.
One option, which accountants don't normally recommend but you can at least consider it, is to take the money out of the company one way or another, paying all tax which is due, and then just let the company die - don't fill in companies house or HMRC forms, and it will just dissolve into thin air in 18 months. the disadvantage is that you as directors will become personally liable for any company debts - which includes being sued in the future, whether by customers or by your fellow director. As things aren't entirely amicable, this might not be a good idea.
As for the iphones, it's not unusual in these circumstances for small electrical devices to be scrapped with no value. I doubt anyone's going to chase them up. |  | | |
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