to close company or not to close company?

[hgllgh]

I have decided to go travelling a three months. My current ltdco has been in operation for about 5 years and currently has 60K in the bank account.

If you were in my position would close the company down and take entrepreneurs tax relief at 10%?

With div tax coming in in the near future it seems like a good idea.....

[northernladuk]

I would as long as my accountant has no issues. Not to sure div tax would bey main driver but either way yes do it.

[pr1]

I would as long as my accountant has no issues. Not to sure div tax would bey main driver but either way yes do it.

it's not your accountant who'll pay the bill!

[northernladuk]

it's not your accountant who'll pay the bill!

What???

[hgllgh]

My accountant just got back to me with the folowing ... "If you are going to return to contracting after a few months, it would be better to keep the company open as there is everything set up for it and has a trading history with Companies House and HMRC"

hmmm..... i wonder how much of that is due to wanting to keep the monthly accountancy fee going!

Also closing the company down may help to mitigate an IR35 investigation as it might be less likely. (I know this isn't 'officially' the case but in reality there may be some truth in this.) I am pretty confident on IR35 anyways but if I can reduce the chance of having to go through the hassle of an investigation then closing the company down 'may' help....

[Maslins]

What do you anticipate doing upon your return? If the honest answer is "setting up a new Ltd Co to do very similar work through to the old one" then you'll be at risk of the transactions in securities legislation biting. Not aware of anyone being challenged on it so chances are even if you did exactly that nobody would bat an eyelid...but the risk is there.

If I were in your shoes? I'd probably go for it, but I'd do something other than contracting through a Ltd Co on my return.

[northernladuk]

With contracting going the way it's going are you absolutely sure you are going to go contracting again? Isn't the three month break a chance to get away from contracting and re-think your career because you've had enough. Both very difficult to disprove

[hgllgh]

What do you anticipate doing upon your return? If the honest answer is "setting up a new Ltd Co to do very similar work through to the old one" then you'll be at risk of the transactions in securities legislation biting. Not aware of anyone being challenged on it so chances are even if you did exactly that nobody would bat an eyelid...but the risk is there.

If I were in your shoes? I'd probably go for it, but I'd do something other than contracting through a Ltd Co on my return.

thanks for the heads up on that!

Do you mean do something like go umbrella for a while?

(Not sure I could go back to permiedom now ... i like the flexibility of contracting too much)

[hgllgh]

With contracting going the way it's going are you absolutely sure you are going to go contracting again? Isn't the three month break a chance to get away from contracting and re-think your career because you've had enough. Both very difficult to disprove

To some extent maybe ... I really want to try to get into the entrepreneur thing and have tried a few times without much success but have learnt lessons along the way. I just can't see myself going back to permiedom...its too inflexible...

[northernladuk]

IMO there's your defence. Be good if you could evidence that in the meantime as well.