Closing LTC company tfr funds

G

Gerrym

Registered User
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I have a small limited company wich I want to close down and go sole trader. Myself and my wife are the only two shareholders 50/50. No staff and not registered as an employer. There is about 10,000 eur in the accounts with no creditors or debtors. All taxes ar fully paid up. Can I just pay the 10,000 to my wife as a dividend, paying DWT and all other taxes etc which are due. I am not looking for a way out of taxes etc. and this will allow me close the business accounts. Thanks for advice.
 
A dividends is a very tax-inefficient means of extracting funds from a company. You should consider paying salary instead, if this is possible. Professional advice should be worthwhile.
 
Thanks for the replay, however I am already in PAYE system on my private pension we are taxed jointly and my wife has no income. So I think the tax would be the same either way. As for rofessional advice I expect the cost of an account advice would outweigh the befefits gained. So I am back to my original question, if I can just ay one shareholder the dividend i.e. my wife.
 
A company can't claim a tax deduction on a dividend. It can on a salary. Is this possible or useful here? That's where professional advice comes in. You can't pay a dividend to just one of two shareholders.
 
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