Limited Company profits

[workingonit]

Hi, I am a sole director of a Limited company. My company made a small profit last year - just under £5000 after everything was paid out.
My yearly review is due anytime soon and I would like to know if the IP can request that the profits are paid to me for the benefit of the creditors.
This is a worry to me as I have worked hard to get this profit as a cushion in these uncertain times.

Thanks in advance.

[kallis3]

Hi,

I've no idea on this one I'm afraid, it's one to sort out with your IP.

[MelanieGiles]

I would not have thought the IP would seek to take such a small reserve away from the business, but at the end of the day it does really depend upon the terms of your specific proposal. Probably worth a chat with them at this stage to avoid later disappointment.

[sponge]

If you are a director I take that you'll take this as a dividend on your share/s of the company? This being the case see if you have a unearned income clause. I believe the HRMC determines divi's as unearned income you still pay tax on them but it's just more benifical
to your business talk to your accountant and they will explain. after asking this question on a previous post some proposals includes them, some exclude unearned income and some have no mention of it at all!

[sponge]

HMRC!

[Insolvency Glasgow]

I was just about to suggest the same as Sponge. If you are a Director I'd be looking to see if you could get it as a dividend. It's an easy one for your accountant to answer.

[kallis3]

Hi,

Sorry, I have removed your signature as you are not allowed one unless you are an expert.