Сonsequences of creating the ltd in UK?

[Aleksandr]

Im going to create ltd in UK for e-commerce(dropshipping) because i need to take the approval from stripe. I have several questions:
1 If i have made the company and after month i'll make a decision to close the company and i will haven't any profits (or how its consider?may be profits in bank accaunt?)how can i close the company and which reports and taxes i will have to send? I have read on website when im going to create company if i want to close the company i must to pay 50 pounds
2 If i'll make a decision to continue to work with ltd company and i will have some profits? I have read about company reports and how much it will cost if i will be take help from accountants company?
Thank's for answers.

 

[Aleksandr]

And can i transfer money from uk bank accaunt to home bank accaunt or i have to pay salary for myself or something else? Is it simple or hard?

 

[onemansomewhere]

Im going to create ltd in UK for e-commerce(dropshipping) because i need to take the approval from stripe. I have several questions:
1 If i have made the company and after month i'll make a decision to close the company and i will haven't any profits (or how its consider?may be profits in bank accaunt?)how can i close the company and which reports and taxes i will have to send? I have read on website when im going to create company if i want to close the company i must to pay 50 pounds
2 If i'll make a decision to continue to work with ltd company and i will have some profits? I have read about company reports and how much it will cost if i will be take help from accountants company?
Thank's for answers.

It does not matter if you make any profit. If you will have any transaction, company is not dormant. You will have shorten a financial year period first. It can be done online. There is no fee. You have to prepare and send a tax return for that period. Afterwords company has to stay dormant for 90 days. Afterwords you can file a dissolution. The costs of dissolution are aproximately 25 GBP.

Costs for accounting are not fixed. Each accountant has different fees and it depends on many factors.

 

[Aleksandr]

It does not matter if you make any profit. If you will have any transaction, company is not dormant. You will have shorten a financial year period first. It can be done online. There is no fee. You have to prepare and send a tax return for that period. Afterwords company has to stay dormant for 90 days. Afterwords you can file a dissolution. The costs of dissolution are aproximately 25 GBP.

Costs for accounting are not fixed. Each accountant has different fees and it depends on many factors.

Thank you for answer
Could you help me with other question?Can i transfer money from uk bank accaunt to home bank accaunt or i have to pay salary for myself or something else? im going to use transferwise. i had conversation with call center from barclays and they said that if i will have uk bank accaunt i can transfer money without problems

 

[James Turner]

Thank you for answer
Could you help me with other question?Can i transfer money from uk bank accaunt to home bank accaunt or i have to pay salary for myself or something else? im going to use transferwise. i had conversation with call center from barclays and they said that if i will have uk bank accaunt i can transfer money without problems

You can transfer funds out of a UK bank account without explaining why or what it is for in the vast majority of cases. Of course sometimes banks will ask as part of their due diligence, but this is rare and really they are only checking that the transaction is legal, not whether you are paying yourself or not.

 

[Aleksandr]

You can transfer funds out of a UK bank account without explaining why or what it is for in the vast majority of cases. Of course sometimes banks will ask as part of their due diligence, but this is rare and really they are only checking that the transaction is legal, not whether you are paying yourself or not.

Thank you
James Turner
I ve found a lot of videos like

How to take money out of a limited company ▶ What wages should be taken out of a limited company without paying income tax, employee national insurance and employers national insurance? 13.8% employer national insurance, 12% employee national insurance ▶ What dividends may be taken out of a limited company without paying income tax. £2,000 tax free dividends each year

And I was scared that i cant withdraw money

 

[onemansomewhere]

Thank you for answer
Could you help me with other question?Can i transfer money from uk bank accaunt to home bank accaunt or i have to pay salary for myself or something else? im going to use transferwise. i had conversation with call center from barclays and they said that if i will have uk bank accaunt i can transfer money without problems

Which money do you want to transfer out of company, when you wrote, that you will close company without having profit?

 

[Aleksandr]

Which money do you want to transfer out of company, when you wrote, that you will close company without having profit?

I wrote about two ways. First way if i will want to close the company with no profits and second way if i will stay my company and will have some profit. Can i transfer money from my uk account to my home bank accaunt and it will be simple? or i will have to do some manipulations for example pay to myself the salary or pay devidents or something else.
I apologize for my english. I think i made some text mistakes.

 

[JohnLocke]

Basically, you can just resign as a director of the company and not respond to any inquiries that may arise regarding accounting etc. then the company will close after some time. I did it a few years back, I haven't heard anything since.

 

[Aleksandr]

Basically, you can just resign as a director of the company and not respond to any inquiries that may arise regarding accounting etc. then the company will close after some time. I did it a few years back, I haven't heard anything since.

as I understand that in the correct way is pay to myself the salary or pay devidents or something else but basically noone do it and people just withdraw thair money from bank account and basically it doesn't have any consequences?

 

[onemansomewhere]

Basically, you can just resign as a director of the company and not respond to any inquiries that may arise regarding accounting etc. then the company will close after some time. I did it a few years back, I haven't heard anything since.

You probably did it in time when CRS was not in place. At this time, before company is striked off, automatic flag by HMRC is requested. If HMRC will see, that there are transactions where they believe tax shall be paid, they will not allow a company strike off by Companies house.
Also, you did that at times, when strike off did not make any problems in a future to become shareholder or director..
Actually, if company is striked off, it is in competence of Companies house to blacklist shareholders and directors serving in last 3 years. Beeing blacklisted is a problem fro anyone who would like to become shareholders or directors. Blacklisting is fot 10 years. If someone does not respond to HMRC or Companies house requests, that is a direct way to a blacklist..

 

[JohnLocke]

You probably did it in time when CRS was not in place. At this time, before company is striked off, automatic flag by HMRC is requested. If HMRC will see, that there are transactions where they believe tax shall be paid, they will not allow a company strike off by Companies house.

I respect your eagerness to post in virtually any thread that gives rise to criticizing the rest that is posted. And it seems that you know a great deal about taxes, tax rules, company constructions and more. That said, much of what you write about is taken directly from the legal text of international tax law. If we all adhered to that legal text, then there was no reason to speculate on tax reduction and the like, in fact we would all not need this forum at all, because according to the legal text, everything should go after the book and we should all do what the state has prescribed in the legal text.

The reality is just a whole other one and I totally agree that we have to follow the rules, but all rules have exceptions and they can be bent.

 

[onemansomewhere]

I respect your eagerness to post in virtually any thread that gives rise to criticizing the rest that is posted. And it seems that you know a great deal about taxes, tax rules, company constructions and more. That said, much of what you write about is taken directly from the legal text of international tax law. If we all adhered to that legal text, then there was no reason to speculate on tax reduction and the like, in fact we would all not need this forum at all, because according to the legal text, everything should go after the book and we should all do what the state has prescribed in the legal text.

The reality is just a whole other one and I totally agree that we have to follow the rules, but all rules have exceptions and they can be bent.

You can try to bend a rules and hope not to be caught. You can do things against law and hope not to be caught. But why to do it, when you can do things absolutely legal with the same result as you are looking for?

 

[JohnLocke]

That's my whole point, I'm not saying that you should do anything illegal, but that you should seek professional assistance to pay the least possible tax. And in this case with the UK LTD that the OP would like to get rid of, you don't have to designate it as illegal just because he doesn't pay an expensive tax advisor money to get rid of a company even if the company owes something to someone maybe.

 

[Aleksandr]

That's my whole point, I'm not saying that you should do anything illegal, but that you should seek professional assistance to pay the least possible tax. And in this case with the UK LTD that the OP would like to get rid of, you don't have to designate it as illegal just because he doesn't pay an expensive tax advisor money to get rid of a company even if the company owes something to someone maybe.

What about me?) Is it legally or no? if i will withdraw money from my bank account without salary for myself and etc?

 

[JohnLocke]

What about me?) Is it legally or no? if i will withdraw money from my bank account without salary for myself and etc?

If it is for private use, it is not legal, unless you pay personal tax from it. If it is company expenses it is legal, no one can force you to take any salary. Do you actually live in the UK?

 

[Aleksandr]

If it is for private use, it is not legal, unless you pay personal tax from it. If it is company expenses it is legal, no one can force you to take any salary. Do you actually live in the UK?

No. Im from Russia. Im going to pay 19% from profit. Or i have to pay more tax?

 

[onemansomewhere]

No. Im from Russia. Im going to pay 19% from profit. Or i have to pay more tax?

You have to pay 19 % Corporate profit tax in UK and when you transfer rest of the money from corporate bank account to your personal bank account, you have to pay income tax from foreign dividends in Russia 13 %.
So, if you have 1000 GBP in corporate bank account as company profit, you will have to pay 190 GBP as corporate tax, send 810 GBP to your personal bank account and later pay 115.7 GBP in equivalent in RUB in Russia in personal income tax.

 

[onemansomewhere]

That's my whole point, I'm not saying that you should do anything illegal, but that you should seek professional assistance to pay the least possible tax. And in this case with the UK LTD that the OP would like to get rid of, you don't have to designate it as illegal just because he doesn't pay an expensive tax advisor money to get rid of a company even if the company owes something to someone maybe.

You advised solution which you did in past.. Just resign as director and stop answering to UK authorities.. it i illegal..

 

[JohnLocke]

You edvised solution which you did in past.. Just resign as director and stop ansering to UK authorities.. it i illegal..

I totally agree, how many million of people do you think just in Europe do exact that for their simple LTD setups with no substance, and some even for LTD's which owe taxes?!