closing ltd company down

[billy6326]

I'm considering closing my ltd company down.

I'm an IT consultant, I've been trading for 6 years, the company is split 70/30 between me and my wife.

been alot of talk, about IT consultants getting hammered in the 2007/08 budget, so I'm considering going permanent. The company has 90k in cash, what would be the best way to distribute this ?.

A friend of mine mentioned closing the company down, and paying CGT.

Regards
Billy6

[adi36]

Look at Revenue publication ESC C16 - it explains what you can do.

www.hmrc.gov.uk

[Bob Jones]

Billy - its up to you what you do but the talk of IT consultants being hammered in the budget is that those within composite companies will lose the benefit of being paid in dividends ...
and they will be setting up limited companies - i.e. taking the option that you are thinking of abandoning. If you have been legitimately claiming travel expenses through your own company you will have to say goodbye that once you go permanent. I would have a think before you close the company down ..

Bob Jones
Internet Taxation Ltd
bob@internet-taxation.co.uk