I have a client who owns a personal service company which he no longer needs. The company has £35,000 in the bank. There are no debtors or creditors subject to corporation tax for the year just ended (March) which is expected to be minimal. It seems to me that he could pay himself £10,000 as salary for the year (the previous year it was £8000) which would leave £25,000 to be distributed to him under section 1030A of the Corporation Tax Act 2010 (the replacement for ESC C16) after three months. Does anyone see a problem with this approach?
Thanks for your comments