Hi Everyone!
Just wanted to get your guys opinion before i go see my accountant.
I have had a decent year so far and am looking to have a surplus of around £200kof the back of a large contract we have completed.
Myself and Business partner would like to draw 100k each to start 2 seperate ltd companies renting out propertys.
What would be the most efficient way to do this, i would like to not go the loan route as i ideally want full independance from the initial company.
Any info would be much appreciated.
Thanks
Replies (24)
Please login or register to join the discussion.
Why do you want opinions from strangers who know nothing about you, before you have got one from your own accountant?
John
Thanks 4977
Respected contributor
You
Just joined
Still do not understand basic rules
Lurk before you post
Not loans
Then it is dividends. Dead simple
Or kill the company with the money
Properties inside companies
This has been answered 20+ times in the last year
https://www.accountingweb.co.uk/any-answers/how-to-use-any-answers
Good idea to read the rules before going off on one
BTW
Be credible
A few accountants
Seems that you do not trust any of them
An accountant needs the full story if he is going to be any use
Assumed you want to put properties into a company because you tube has just so many videos saying it is a good idea
Two comments
Consider Exit
Consider IHT
@Wanderer
You aren't meant to say Passive Aggresive anymore because it supposedly tells you more about the labeller than the labelled.
The argument essentially is that control freaks call people who won't do what they say Passive Aggresive.
We are all eagerly awaiting the invention of a synonym without a fallout that infects the denouncer.
In the meantime you might say something like "My old Dad would have called you passive aggresive", thus showing that you are hip with the kids.
HTH
Ah thanks Mumpin.
I'm sure you are right.
I must try harder to get my control freakiness under control ................. ahh there I go again!
I'd hold on to the control freakiness ... it's got to be better than Alien hand syndrome (or Dr. Strangelove syndrome as it's sometimes known). ) :
"The argument essentially is that control freaks call people who won't do what they say Passive Aggressive."
That's a neat piece of high-jacking presumably originated by a passive aggressor. FWIW my (long-winded alternative) would be "exhibiting Marie Antoinette tendencies."
Anyway, in the hope that the intention was humorous, its logic is almost on a par with my favourite entry in a dictionary:
* Recursive ... see recursive
OED definition of passive-aggressive:
"of or denoting a type of behaviour or personality characterized by indirect resistance to the demands of others and an avoidance of direct confrontation"
Marie Antoinette's reputed response, upon being told that her starving peasant subjects had no bread, of "Then let them eat cake" ... seemed to be a reasonable exemplar (given the edict not to use the original phrase)?
Although I take your point that a state of headlessness is also apposite.
Thanks for the explanation. Clear and well-articulated.
Also a stark reminder to me that I should include a smiley face to indicate when I am joking. :-)
Likewise.
I'm not a regular user of emoticons (sounds like a confession), so I also forget to apply the more laborious character-based smiley ... which should've appeared at end of my last post above.
Ah well ... I'm reminded of an old girlfriend (or rather a very young girlfriend a long time ago) who had a habit of inserting '(joke!!)' at the end of almost every sentence in her daily letters - remember those?
Exit time for me
You are unlikely to get much sympathy for your views on this platform
As they say on Dragon's Den
Wish you well, but I'm out
Ironically, John asked you a genuine question (not talking down to you at all)* and your response to it was uncalled for.
* Thinking he was is the real sign of an insecure person.
John did get it wrong
He did not know that OP has a few accountants.
Best way forward now would be to invite them all to a meal out at OP's largesse and bring up the subject once they have had few wines and then listen to the whines
Isn't that what you get pay professional advisers for, their superiority? Seems you are seeking it for free here, prohably from one of your many existing accountants!
Not really going off on one, it's obviously im new here, i asked a genuine question and the response was uncalled for. It would have literally been easier to answer or do nothing but he choose to talk down to me.
The sign of a insecure person.
Underneath that uncalled for answer is great advice if only you could see it.
You don't seem short of a bob or two. Spend some of it on getting advice tailored to your personal situation.
...some of the other responses here are pretty unprofessional and does border on embaressing.
Presumably you're referring to all the responses containing typos?
i've have simply found that diffent accountants have different interpretations on some things.
Then you are almost certainly getting a variety of mediocre to poor advice. Not because the advisers are poor, but because anyone without the full picture will not be able to give good advice.
But hey, at least you can feel superior to them as you pay more tax and store up problems for the future.
...i have a few differnt accountants for my differnet businesses, often they have different views on certains things
I dare say they do have different views on who H is line Line of Duty or how many trophies City will win this season. Assuming you actually mean finance here, I don't know why you've chosen to have different accountants for your different businesses. The downside of it is that each only has a partial picture of your affairs - and that results in different advice. And they may also focus on different facets of the subject depending on how you frame the question.
If you want to play advisers off against each other, I'm also out.
Pensions are a possible avenue though doubt you have the critical mass to be cost efficient and it would need to be commercial property, but there are lots of other routes all with costs/benefits to consider.
There are lots of questions to be asked here , BPR,BADR, family circumstances, will existing business continue etc, consulting an accountant is essential, he/she gets full picture and offers routes, each with its pros and its cons.
Do you want to keep the original company?? If not liquidate it
Are there positive reserves in the company ?? If so take dividends
Does the company owe you money ( directors loan a/c)?? That can be taken tax free
Take a large taxable bonus
Is the £200000 net after Corporation Tax ?? If not reconsider your position /alternatives
That about sums it up