Contractor - Shutting down Ltd company and starting again!?

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I'm an IT contractor and have been using my own ltd company since 2005 and been using the route of salary + dividends. I have now accumalated around £50k within the company which I wanted to take out. My accountant is advising me to dissolve the company and take the money out which would equate to a tax of 10% CGT and then start a new company to continue contracting.

I want to know if this is feasible and also legal!? What are the complications, if any, of doing this?

Is he a dodgy accountant or a good one !?

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khushy said:

Asking a Q like this in an open/public forum with clear references to your REAL NAME and your location is a little daft/stupid dont you think?

Khushy

:???: did i say thats my real name

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Thanks for the support guys Honestly though I'm not asking about anything illegal I just need to know if this advice is trouble free!?

My accountant has said he will get approval from the HMRC before making the move..

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Eric - i know where you are coming from but what has happened here is that I have not been taking enough out of the company so have been left with this big lump sum so need to take it out - next time I'll be taking out more every month I suppose...

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Have you maxed out your personal tax allowances and Basic Rate tax band yet?
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Yep totally maxed out!

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Done that too

Guys dont forget this is not my idea it's my accountants so he's obviously looked at all avenues before suggesting this...

All I want to know if its legit!?

Eric???????

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Eric Mc said:

Have you taken on board my comments?

How many times do you intend to wind up your companies very time you fancy a tax fee bonus?

Sorry been away for two days so not been online! I've replied to this already Eric - I plan to take out more per month in the next company. But thinking out loud - if this is legal then why not make it a habit

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Now thats a point - will discuss this with my accountant and let u know what he says - Thanks mate