The company (property investment co making a loss) has 200K in its deposit account. If the directors wish to withdraw this from the company (because they feel it would be better invested elsewhere) are there any tax or other implications involved which need to be considered?
Many thanks,
Philip Clough
Replies (4)
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Company invests..
Depending on what the intended investment is, why not make the investment through the company? thus avoiding any tax charge
Not a dividend
... unless the company is only now making a loss and has retained profits after tax from earlier years of at least £200,000 (not including any revaluations of properties still owned by the company).
Or a dividend?
Thanks for that 'Anon'. Just one more query though, could the directors take the payment as a dividend instead and would that be more tax efficient?
yes there is
they should put the money drawn through the payroll as salary. they will then have to account for the tax and NIC before the 19th of the following month.