What to do with limited company?

[WGT]

Hi,
I'm an IT Contractor for the last 9 years. I'm now considering taking up a permanent position. The Balance in my limited company is about 25k.
Can anyone tell me what my options are? I've heard that it costs money to wind up a company, but yet if I just leave it dormant, I will be subject to corporation tax. My account has told me it will also cost 900euro per year to do the accounts.
I may also decide in the future to go contracting again, so if I could take the money out of the business (in the most tax-efficient way), and leave it open, that would be ideal.
There is also a pension schem attached to the business, which has a value of 50k (80k contributions to date :-(
I've asked the accountant this same question, but he hasn't got back to me yet.
Any advice appreciated.

 

[Graham_07]

1) Check further into the pension, I know values are down but can the company pay more into for you which would be tax efficient.

2) If you want to just extract the 25K then you will pay Income Tax/PRSI/Income Levy/Health Contribution on it.

3) If you leave it and there is no trading then unless there is a profit or earned interest then CT will be small/non-existent.

4) If movements on the accounts are non-existent and company just has cash at bank and is audit-exempt then annual accounts/returns could be done for less than €900. Shop around or look for a reduction. You could then keep company available for future use.

5) You could liquidate (costly even for small case like this) but would then pay CGT on distributions to you at 22%. ( assuming the company has not any CGT liability from any other assets it disposes of also)

 

[billythefish]

It seems here that liquidation costs would most likely make a liquidation unfeasible. I agree with Graham that you should definitely be able to get dormant accounts for less than €900 + Vat p/yr.

Weigh up the costs of having the company struck-off (about €400) and a new one incorporated (about €300) against what it might cost to keep the current company alive for several years.....

 

[capall]

It should cost no more than 1500 not including accounts to get a voluntary strike off for your company,your accountant will advise of what needs to be filed with cro etc
You can prepare your accounts up to date you ceased earning or later,you would have being paying to get accounts done anyway

You should be able to pay yourself a tax free redundancy payment of
10160+765*9=17045 approx and pay the rest through normal paye system

Your company pension you can move to your new job

 

[billythefish]

It should cost no more than 1500 not including accounts to get a voluntary strike off for your company

That sounds a bit excessive capall. i got a company struck off with mystrikeoff.ie and it cost me a fraction of that.

 

[capall]

that looks good. I was including tax calc also and most people need advice as to how best to extract money out of company although it is simple enough

 

[Graham_07]

most people need advice as to how best to extract money out of company although it is simple enough

I would never assume taxation on and extraction of funds from limited companies to be "simple enough". A simple error can sometimes prove to be very expensive.