Closing a personal service company (PSC)
Although still the most common trading model for contractors, there may come a time when you need to close down a limited company (moving to a permanent role or retiring).
The approach to the company closure should be carefully considered as there can be significant differences in taxation depending on the approach and value of the company.
We advise our clients through the process by reviewing the areas of:
- Company valuation
- Trading status of the company
- Intention of director(s) and their personal tax position
- Dividend distributions
- Capital gains tax and entrepreneurs relief
- Liquidation of the company through a members voluntary liquidation
On the completion of our due diligence we will then advise the client on the best approach for their business and guide them through the process of closing down their company.