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profits in Ltd company

I have profits in ltd company and would like to take out tax efficiently

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I have 46k in profits in ltd comapny but due to now being in PAYE cannot take a salary etc as in highh tax band. I still have 2016-17, 17-18, 18-19 accounts to submit. Can I add shareholders such as my wife and children to dirtibuet the funds and clsoe the company. I intended to issue shares for the years 16-17 and 17-18 at 5k each for the 4 shareholders incl myself 40k tax free and for 18-19 the remaining profit for 2k each. Is this feasble withoiut HMRC knocking on y door

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16th May 2019 13:47

There are so many things wrong with what you are suggesting it is hard to know where to start.

You already have a lot of problems that cannot be fixed because you didn't take advice in advance. HMRC already have several justifiable reasons for knocking on your door.

Do yourself a favour and appoint a (paid-for) accountant now. Continue to try to do this on the cheap and you'll only end up in more trouble.

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16th May 2019 13:49

Hard to know where to start! You have profits, you haven't filed accounts for some years.....Presumably you won't have paid any corporation tax on the profits? Which has to happen before you think about dividends. And no, you can't go back in history and re-imagine the shareholdings you would like. And dividends are paid out of after-tax reserves etc etc. Do yourself a big favour; appoint a local accountant asap before increasing the mess you're already in.

Edit - just beaten to it; great minds think alike!

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to Kevkava
16th May 2019 14:44

The last accounts 15-16 have been completed and the corporation tax and vat has been paid leaving. the 16-17 account have been deferred till now due to personal bereavement and are due in July so they are the next set of account but whil I am ther IO want the other years done and company closed so the reason for asking how I can have all the profit removed tax efficiently my accountant no longer trades so have to employ another but I wanted some advise up front to ensure I get the right advice on accountant said to take it all as a dividend but the tax man would tax me at 45% as I am in employment now on paye already above the tax threshold

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By DJKL
to Advise my accounts
16th May 2019 15:35

Not sure how limited company accounts ending in 2017 can be due in July 2019?

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to DJKL
16th May 2019 16:12

Application to Companies House minions ?

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16th May 2019 13:54

Wow. Where to begin?!

You could try thomsonlocal.com, under "accountants"

Edit... beaten to it - distracted by the kettle boiling, not just my slow typing!

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to Tax Dragon
16th May 2019 14:11

Tax Dragon wrote:

Edit... beaten to it

Twice!

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16th May 2019 13:55

I'm surprised the company hasn't been closed down already if all those accounts are still outstanding.

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16th May 2019 13:58

I'm sorry to say that, by the sound of it, if you had appointed an accountant back in 2016, you could well have extracted all of those profits without paying much if any income tax. Not doing so has already cost you considerably, and will cost you a lot more if you don't appoint an accountant ASAP. (I'm not offering to be that accountant...)

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to whatdoyoumeanwashe
16th May 2019 14:02

....nor me.

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to whatdoyoumeanwashe
16th May 2019 14:50

... nor me.

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16th May 2019 14:11

Dear Timelord, we on earth will struggle to meet your exacting requirements. Can I respectfully suggest you take your Tardis and appoint an adviser on Gallifrey.

If this is impossible I recommend that you part with a small fraction of your £46k and obtain professional advice from a trusted accountant of this planet.

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16th May 2019 14:19

Given the mess that you are in it is quite likely that any accountant you approach would charge a premium to sort you out. Like the others here I wouldn't take you onj

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to The Innkeeper
16th May 2019 14:22

You can get a barge pole on eBay for £23.99....

https://www.ebay.co.uk/itm/8-Foot-Ash-Boat-Pole-Narrowboat-Barge-Canalbo...

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16th May 2019 15:15

Here's a thought.... Are these profits even in the Ltd Co? Without advice, maybe the OP invoiced in his/her own name and never opened a company bank account....

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16th May 2019 15:38

The last accounts 15-16 have been completed and the corporation tax and vat has been paid leaving. The 16-17 accounts have been properly deferred till now due to personal bereavement and are due in July so they are the next set of accounts but while I am at it I want the other years done and the company closed so the reason for asking how I can have all the profit removed tax efficiently my accountant no longer trades so have to employ another but I wanted some advise up front to ensure I get the right advice on this as one accountant said to take it all as a dividend but the tax man would tax me at 45% as I am in employment now on paye already above the tax threshold so want to share the funds with family shareholders

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to Advise my accounts
16th May 2019 16:06

Advise my accounts wrote:

I... want to share the funds with family shareholders

I'm confused. I thought you personally wanted the money but with less tax payable.

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16th May 2019 16:06

When you filed your annual confirmation statements at Companies House (you have been doing that?), you'll have confirmed the share capital and shareholdings. You can't backdate changes to shareholdings and manufacture prior year dividends to try to escape tax.

Don't forget that there is corporation tax to come out of the £46k retained profits before you can pay any out as dividend. Plus some penalties for late filing. Plus fees for getting you out of this mess.

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16th May 2019 17:10

Take the money. Don't file accounts. Company will be struck off and you're off scot-free. That'll be £5,000 please.

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16th May 2019 20:22

what a t..t !

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By frankfx
16th May 2019 21:20

I think the Scouts are re introducing Bob a Job Week.

An old timer Scout on AWEB could help you out for a bob or two.
If that s all you can afford to extract £46,000 from your company, all to a good cause too. A win win.

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By SXGuy
17th May 2019 08:18

Hi. I have 46k sitting in my bank. Can i have some free advice from an accountant regarding how I take the money with as little tax as possible?

No.

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17th May 2019 08:56

You want to liquidate the company, appoint a liquidator. They're not always all that expensive and since the company is solvent, they'll act in your best interests and do what they can to get you the funds out with minimal costs.

You have seriously limited their options for doing so already though, I would suggest not waiting any longer. I would also warn you that it is extremely easy to do things which are illegal if you attempt to proceed on your own, so if you're seeking advice elsewhere online and it says anything other than "hire a professional" then you should be highly sceptical.

A good example of such illegal actions would be your proposed plan for dividends.

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