MVL and Ltd Company to Umbrella ?

[Alan @ BroomeAffinity]

MVL and Ltd Company to Umbrella ?

Wrong thread. Sorry.

[MrContractor85]

Any developments...

Also considering doing what the OP was suggesting. Has there been any further comments from HMRC on this?

[NickX]

Also considering doing what the OP was suggesting. Has there been any further comments from HMRC on this?

I am also looking for clarification on this. Are there any updates on the viability of closing a Limited Company via an MVL claiming Entrepreneurs Relief and then working via an Umbrella Company instead ?

[northernladuk]

I am also looking for clarification on this. Are there any updates on the viability of closing a Limited Company via an MVL claiming Entrepreneurs Relief and then working via an Umbrella Company instead ?

Thing is what are you going to do after the brolly? You are taking a contract that is still likely to end within two years and then where will you be? Brolly or not you've started in trade less than 2 years after gaining tax advantage from shutting your company surely?

It's a long shot hoping you are going to be in a gig under a brolly for 2 years, particularity when the dust hasn't really settled. Common sense may prevail and they put you back outside.. then you are screwed.

[SeanT]

It's a long shot hoping you are going to be in a gig under a brolly for 2 years, particularity when the dust hasn't really settled. Common sense may prevail and they put you back outside.. then you are screwed.

Surely there are people outside the regs working under a brolly anyway - probably even claiming expenses too? If it's legit, and there's a couple of hundred k in the business, then an extra e.g. 20-30k tax over the next two years is probably fine. May be better off in a pension though.

[NickX]

Thing is what are you going to do after the brolly? You are taking a contract that is still likely to end within two years and then where will you be? Brolly or not you've started in trade less than 2 years after gaining tax advantage from shutting your company surely?

I wouldn't be planning to do 2 years under the brolly - probably around 6-12 months before retiring.

Common sense may prevail and they put you back outside.. then you are screwed.

Can you explain what you mean? Who would be putting me back outside of what exactly?

Why would I be screwed? My concern is around using the Umbrella Company meaning I would no longer qualify for Entrepreneurs Relief.

Thanks for your response.

[NickX]

Surely there are people outside the regs working under a brolly anyway - probably even claiming expenses too? If it's legit, and there's a couple of hundred k in the business, then an extra e.g. 20-30k tax over the next two years is probably fine. May be better off in a pension though.

Thanks Sean, I think that is similar to my line of thought - the problem with the pension contribution is that there is a limit of £40k per annum I believe.

[northernladuk]

Ah my apologies. I was still thinking about PS issues and this clearly isn't that.

[NickX]

Ah my apologies. I was still thinking about PS issues and this clearly isn't that.

No problem, thanks for the input anyway.

Hopefully someone can provide an update on closing a Limited Company via MVL then subsequently working through an umbrella company ?

[northernladuk]

You could try ringing Chris Maslin who posted earlier and runs MVLOnline. If anyone knows surely he does. See if he's heard anything. You could try dropping him a PM with the link to this thread and he might update is tomorrow.