Paying down the loans are the best option - I had just wondered of the merits of leaving cash in the business.
The car is on PCP - so will leave it as is for now. The aim is to clear the house loan.
Discussed in lots of other threads. Not advisable unless you have a medium-term written plan to shut the business and avail of Retirement Relief or Entrepreneurial Relief.
In your personal situation, you need cash as you are heavily borrowed and you want to trade up. So get the cash out into your hands and not into a pension fund.
That is the right approach as long as you have the balloon payment available when the PCP ends.
Brendan
In Ireland?Curious - we've always been advised building up surplus cash in the company is more tax efficient than taking it as salary. Why would it be inadvisable to do so Brendan?
Yes in Ireland. It's a limited company with ourselves as directors and we pay ourselves enough to avail of tax-free allowances exemptions and leave remainder in the company bank account. A while ago so I'm sketchy on the details now, but I believe accountant mentioned something about taking it out as a lump sum in our mid-fifties or somesuch?In Ireland?
Unless there's a clear strategy on how to extract cash tax efficiently in future, then don't leave it there. Especially if subject to close company surcharges.
Talk to your accountant, and get clarification on the plan. In writing. And review it every few years in case the tax rules have changed and the plan is no longer valid.A while ago so I'm sketchy on the details now, but I believe accountant mentioned something about taking it out as a lump sum in our mid-fifties or somesuch?
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