How can I take money out of a non-trading company?

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Hiya

I have a limited company that used to be trading, but it has not done so for a few months now. I’ve still technically got money in it, and I was wondering if it was possible to take that money out? I know to be non-trading there can’t be any transactions, so would that count as a transaction?

Cheers

Answers

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You can certainly take money out of a non-trading limited company whenever you like, but the company will cease to be dormant if you do. The withdrawal of funds from your business bank account is classed as a ‘significant accounting transaction’,which means you will be required to enter the transaction in your accounting records and you will be unable to file dormant accounts.

If you extract money from your company as a salary or dividends, you will have to follow the correct procedures by operating payroll or filing a Self-Assessment tax return. If you are simply reclaiming money you have paid into the business, you will not be liable for personal tax but you will have to record the withdrawal in a director’s loan account.

a year ago
 

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