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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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.
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!
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!
I'm surprised the company hasn't been closed down already if all those accounts are still outstanding.
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...)
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.
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
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...
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....
I... want to share the funds with family shareholders
I'm confused. I thought you personally wanted the money but with less tax payable.
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.
Take the money. Don't file accounts. Company will be struck off and you're off scot-free. That'll be £5,000 please.
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.
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.
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.