Looking at winding up a Ltd Co for a client who only traded for a short period (4 months).
Undistributed reserves of £21k but would not qualify for ESC C16 due to being less than 12 months.
Has large PAYE salary so any dividends would be taxed at 25%.
In these circumstances would an MVL and claim for ER be suitable? I do not have a massive amount of experience of this so would like an opinion.
thank you for your time
Replies (2)
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What is ESC C16? And what is the relevance of 12 months to it?
You cannot claim ER whatever rout you go, as the company did not trade for 12 months.
Which does the client prefer, 25% tax or 28% tax?