Make company dormant or close down?
superoz · 18/02/2016 19:48
I have a limited company from when I did a stint in contracting a few years ago. Since having dd2 I haven't worked in nearly 3 years and although now looking for work am likely to go back into a permanent job for security.
I'm not sure what to do with the company as I might go back to contracting at some point in the future although not anytime soon. So it worth just making it dormant and reviving it or more cost efficient to just close it down and open a new one up if/when the time comes?
rioblue · 19/02/2016 12:28
Does the company hold any assets and do you have an accountant - ask about entrepreneur's relief and whether that is something that would be applicable in your case. If you do decide to close it down then it could be beneficial tax wise.
TalkinPeace · 19/02/2016 14:31
how would entrepeneurs relief help with a zero balance company?
rioblue · 19/02/2016 15:54
The only person making mention of a "zero balance" company is you. The op didn't specify so I sought clarity by asking if there were any assets (cash is an asset). It may or may not be a suitable relief.
superoz · 19/02/2016 19:52
rioblue there's some cash in the bank, about 5k which I have kept aside for any tax or bills, the only other asset is my laptop. My accountants haven't advised either way, just that fees would be an overhead in keeping the company going.
I haven't heard about entrepreneurs relief, not sure if it would apply in my case.
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