Dormant or close ?

[LancelotBarre]

Hi All, first post so be gentle please.

I've been contracting for about 20 years but recently, I've been more into having a bit of time off between contracts and despite agencies and clients wanting proof that you were not in prison after a break of a couple of months, then it works fairly well.

I've now reached the position where I'm 90% sure I don't want to do it anymore, but you never know what might happen. Question is should I close my company down or leave it dormant. I will ask my accountant, but wondered what the general feeling might be.

Thanks

Lance.

[northernladuk]

IMO close it down when you get a genuine opportunity, particularly if you have cash in the company that you can release with tax advantages. Or just do it to start again with a fresh slate and let the history disappear with the old company.

If you are genuinely not sure you are going to continue and it could be a couple of months before the next gig IF you decide to carry on then I would say that is enough justification to close it and not look like you are Phoenixing it.

All that said I am assuming you haven't closed too many company's down in the past and always take advice from your accountant.

[LancelotBarre]

Thank you Northernladuk. I've never closed a company down and have used the same one for 20 years.

I know there is always the option of going umbrella if a contract came up that tempted me to go back to it, but paying that amount of tax would be enough to put me off the idea again.