- Original Poster
- #1
I want to pause one of my businesses for a while and can't decide whether to wind up the company or not and also, have no idea how to get the money out.
I know about the property aspects so don't need advice on this.
We haven't decided whether to restart the business but this may be an option in say two years. We want to go travelling until Brexit sorts itself out so we can see where we are at (our business is heavily dependent on imports and exports and the low pound and uncertainty over import duties etc. have made things difficult over the last couple of years)
So the advantages of dissolving the company are:
1. no past liabilities coming to light
2. no requirements to continue filing accounts although I expect dormant accounts are less onerous and costly
3. we can de-register for VAT
The disadvantages of dissolving the company are:
1. losing an old free banking account (although need to check the conditions if money stops going into it)
2. losing a Shopify store with cheap custom rate and no selling fees even if you don't use their payment processor
3. losing 23 year track record and corresponding credit history which means we never have to pay pro-forma.
The advantages (I think?) of keeping it are:
1. We can carry on paying ourselves a small salary - although do we need to continue trading in some form do do this?
2. We can carry on getting NI credits (I need another 2-3 years)
3. We don't have to start again from scratch if we decide to restart the business.
If we did dissolve the whole thing, what happens to :
1. the cash in the bank
2. unsold stock
for tax and accounting purposes?
And what is the process we need to go through? I know about VAT as I called them and they explained it to me.
There are no debts.
I know about the property aspects so don't need advice on this.
We haven't decided whether to restart the business but this may be an option in say two years. We want to go travelling until Brexit sorts itself out so we can see where we are at (our business is heavily dependent on imports and exports and the low pound and uncertainty over import duties etc. have made things difficult over the last couple of years)
So the advantages of dissolving the company are:
1. no past liabilities coming to light
2. no requirements to continue filing accounts although I expect dormant accounts are less onerous and costly
3. we can de-register for VAT
The disadvantages of dissolving the company are:
1. losing an old free banking account (although need to check the conditions if money stops going into it)
2. losing a Shopify store with cheap custom rate and no selling fees even if you don't use their payment processor
3. losing 23 year track record and corresponding credit history which means we never have to pay pro-forma.
The advantages (I think?) of keeping it are:
1. We can carry on paying ourselves a small salary - although do we need to continue trading in some form do do this?
2. We can carry on getting NI credits (I need another 2-3 years)
3. We don't have to start again from scratch if we decide to restart the business.
If we did dissolve the whole thing, what happens to :
1. the cash in the bank
2. unsold stock
for tax and accounting purposes?
And what is the process we need to go through? I know about VAT as I called them and they explained it to me.
There are no debts.
