Cater Allen - new bank account

[MrC]

my accountant advises me to close my company every 7 or 8 years as it helps with ir35 - also i was out of work for a while this year and it will save on tax by closing the company.

What's the benefit/relevance of being out of work for a while - do you mean JSA??

[northernladuk]

What's the benefit/relevance of being out of work for a while - do you mean JSA??

No, I think he's means to make use of certain tax advantages when shutting down the company but there are rules around doing this and trading again which I assume his accountant isn't bothered about.

[BolshieBastard]

Oh dear.....

Get a new accountant. Seriously. The Transactions in Securities legislation specifically disallows you from gaining a tax advantage through capital distribution of the cash reserves in your company when you are intending to carry on the trade.

LOL! A couple of you need to 'get a new accountant.' Seriously.

Its a perfectly good strategy. If you've taken reasonable IR35 avoidance steps, once your co is closed down you arent personally responsible for any IR35 debt HMRC may try and bring to your door.

If you dont believe then I suggest you do some proper research including an article that was linked on here not that long ago.

Better still, stick with your accountants, LOL!

[stek]

LOL! A couple of you need to 'get a new accountant.' Seriously.

Its a perfectly good strategy. If you've taken reasonable IR35 avoidance steps, once your co is closed down you arent personally responsible for any IR35 debt HMRC may try and bring to your door.

If you dont believe then I suggest you do some proper research including an article that was linked on here not that long ago.

Better still, stick with your accountants, LOL!

What about 'lifting the veil'?

[jamesbrown]

LOL! A couple of you need to 'get a new accountant.' Seriously.

Its a perfectly good strategy. If you've taken reasonable IR35 avoidance steps, once your co is closed down you arent personally responsible for any IR35 debt HMRC may try and bring to your door.

If you dont believe then I suggest you do some proper research including an article that was linked on here not that long ago.

Better still, stick with your accountants, LOL!

Weeeeeeee! Good luck, and lube up

More importantly, what on earth has IR35 got to do with Transactions in Securities?

[BolshieBastard]

Weeeeeeee! Good luck, and lube up

More importantly, what on earth has IR35 got to do with Transactions in Securities?

I think its you who should 'lube up.'

My accountancy practice have had 10 IR35 investigations to date, They've lost none. 7 of those investigations were brought by HMRC against closed down companies and the directors thereof.

HMRC lost all 7 of those investigations too. So, you were saying?

[jamesbrown]

I think its you who should 'lube up.'

My accountancy practice have had 10 IR35 investigations to date, They've lost none. 7 of those investigations were brought by HMRC against closed down companies and the directors thereof.

HMRC lost all 7 of those investigations too. So, you were saying?

What part of Transactions in Securities don't you understand? It has nothing to do with IR35.

Did you take a capital distribution and claim ER when closing any of your companies in the past? If so, when you secured that tax advantage, did you intend to carry on the trade (e.g. did you open another company in the same trade shortly thereafter)? If you can answer yes to both questions, you'd better lube up, as I said. It doesn't matter whether your contracts were outside of IR35 or not (except that you wouldn't have had much capital to distribute if they weren't and you were operating inside).

[MrC]

No, I think he's means to make use of certain tax advantages when shutting down the company but there are rules around doing this and trading again which I assume his accountant isn't bothered about.

Yeah, I guess it (inadequately) supports the case for pheonixing.

Just to clarify - does the transaction in securities legislation apply only if one claims ER?

ie is it legitimate to close Co #1, get cap dist (but no ER), then open Co #2 in same trade?