Ltd company, end of contract.

[jimmyd123]

Hi,

Just wondered if anyone would be able to give me any advice to help with my current situation.

I'm currently contracting, and have been for the past couple of years. I have been working as a limited company, with me as the sole employee.
It looks like my contract is not going to be renewed. (I do have a perm job lined up already luckily.) The contract comes to an end on 31/03/09.
I was wondering what is the best way to wind the limited company down? Can I just pay myself all the money in the company account(including money saved for tax) as redundancy?

I haven't had a good look into it yet, but was hoping someone could start me off along the right lines.

Thanks,

James

[MaxAndRuby]

Buy a second one, just to impress people

[XJSJohn]

Talk to an accountant, there are ways to wind down a Ltd Coy with the minimum of donations to Gordon's coffers, but the accountant will need to see how you have run the company to be able to best advise.

[jimmyd123]

M&R - You can buy the one I have if you like. It'll open all the right doors for you.

Thanks John, obviously I'm trying to do it as cheaply as possible too. I'm trying to avoid paying an accountant, but I know in the end I'll have to.

[merc_man]

jimmy,

It might be worth keeping it going as you can still draw a salary and do the odd bit of freelancing.

As others have said I would speak to a good accountant specialising in IT contractors. Can point you in the direction of mine if needs be.

[James P]

Up to the OP to decide whether he has any long term use for the company.

If not and assuming that the company is solvent, the cheapest method is to simply pay everyone who is owed money and see what is left over. If the company's affairs are straightforward, it would probably be ok to draw the balance and then apply for the company to be dissolved.

However, there are limits on repaying share capital so the OP must check with his accountant and, if there is any doubt that the company can pay it liabilities, take advice from an Insolvency Practitioner as well [this is normally where I come into the equation].

[MaxAndRuby]

jimmyd123 said:

M&R - You can buy the one I have if you like. It'll open all the right doors for you.

Thanks John, obviously I'm trying to do it as cheaply as possible too. I'm trying to avoid paying an accountant, but I know in the end I'll have to.

Sorry, I was referencing a previous(highly amusing) thread

A good accountant will always save you more in tax than they charge you, and there are some issues which could bite you in the arse there.

[Eric Mc]

Are you not using an accountant already?

I would suspect that most non-specialists would be unable to run a limited copmpany without falling foul of the myriad rules and regulations surrounding company law and Corporation Tax.

Have you produced a first set of accounts yet?

[jimmyd123]

I have been using an accountant up until recently, but they were restructuring, and I had a good idea my time was up here, so it's sort of just fallen quiet.
I have a week off in between jobs, I can almost exclusively dedicate my time to wrapping this up myself, well that's the plan anyway.

My first set of accounts was all dealt with in November 2008. I first started getting paid this way in September 2007, just incase that helps?

[mas99]

jimmyd123 said:

Can I just pay myself all the money in the company account(including money saved for tax) as redundancy?

No.

There used to be a combination of taper relief and extra statutary concession C.16 which gave a handy out. But you're not going to get the taper benefit and you may not get esc c.16 if you've only been going a year.

How much cash is sitting in the company - roughly - are we talking a few K or 10K or 100K?

ask again in business and Eric will sort you out.

[Eric Mc]

jimmyd123 said:

I have been using an accountant up until recently, but they were restructuring, and I had a good idea my time was up here, so it's sort of just fallen quiet.
I have a week off in between jobs, I can almost exclusively dedicate my time to wrapping this up myself, well that's the plan anyway.

My first set of accounts was all dealt with in November 2008. I first started getting paid this way in September 2007, just incase that helps?

Unless your trading transactions all ceased within the last completed accounting period, you will definitely need to put together at least one more set of trading accounts (in full and abbreviated formats for Companies House) and a Corpotration Tax return for HM Revenue and Customs.

Is your company set up for PAYE?

If it is, you almost certainly have to compolete the employer end of year return (P35) for 2008/09 and possibly the P11d and P11d(b) as well.

[jimmyd123]

There's about £20k in there. So it's worth putting in a little effort to minimise Gordo the Clown's cut.

[Eric Mc]

You might need to close this version down seeing as how you've now started a similar thread over in the Business Forum.