Winding Down Company - Tax Efficient Way To Withdraw Money

[BobbyFowler]

I've operated as a Ltd Company for nearly 4 years. I'll either be selling or shutting down the company midway through this year. At that stage & after any outstanding payments have been made, there'll be about 40K in the bank (presuming I can't sell it) I'll just be paying myself 34K this year so am in the 20% income tax bracket. What's the best way of accessing this 40K in a tax efficient manner?

 

[MOB]

One simple way would be to pay yourself a small-ish salary for a year or two over the course of a more gradual winding down process. This would be reasonably tax efficient, esp. if you are not going to have other income. When the company is all but broke, you can liquidate or possibly just do a voluntary strike-off (do take advice though).

 

[mrgtbad]

i'm told by experts that when you close the company that you only pay 20% tax on the retained profit.i'd check with a good accountant because tax is complicated.i really do mean a good accountant.a lot are very poor on advise.

 

[hhhhhhhhhh]

You only have to pay 20% capital gains on the profits if you cease trading, there might be some conditions on it.

Talk to an accountant, but from info I received before, you can make yourself redundant

€10k basic redundancy entitlement
€10 increased exemption if you have not received redundancy in the previous 10 years
€765 per years service

The above is all tax free

 

[ubiquitous]

, you can make yourself redundant

€10k basic redundancy entitlement
€10 increased exemption if you have not received redundancy in the previous 10 years
€765 per years service

The above is all tax free

This applies in very limited cases, if at all. I wouldn't be too hopeful, unfortunately.