Close and open Limited Company same day

[Scruff]

What did the Seagull say when he flew into a cliff?

[NoviceContractor]

What if I go to Umbrella right after closure and stick to it for few weeks/ months and then get back to limited company? I can also take a permi job in between (may be for a day or week just to mark my name there and if HMRC comes after me then I can say that my intention was to go permi and I tried but the role did not turn out to be suitable to me so I had to come back to contracting) and then set up limited company.
Will this cause any trouble?

[stek]

What if I go to Umbrella right after closure and stick to it for few weeks/ months and then get back to limited company? I can also take a permi job in between (may be for a day or week just to mark my name there and if HMRC comes after me then I can say that my intention was to go permi and I tried but the role did not turn out to be suitable to me so I had to come back to contracting) and then set up limited company.
Will this cause any trouble?

Yes, I asked a similar question not long back. Basically you are running a big risk if you do you what propose, unless you are retiring or moving abroad perm seems there'll always be the chance Hector will come knocking in the future and he might be able to do that in the EU.

Your argument above is weak, but at the end of the day it's hard to prove intent. The major issue for me is I don't want the Sword of Domacles hanging over my head and the way HMRC is now and will in the future, there are no hiding places, they will look for you, they will find you, and they will penalise you with interest and punative penalties.....

Good luck...

[northernladuk]

All the decision you are putting forward have no business reasoning and are purely for avoiding tax. This would fall under aggressive avoidance which means it's likely to fall flat when investigated.

[Maslins]

As alluded to by Alan@BroomeAffinity, I wouldn't rely on tax advice from a liquidator. They're not trained in tax, and don't need to be. They do liquidations, and are trained in all the complications that can arise re that, dealing with debtors/creditors, legal implications re fraud/negligence, etc etc. However, many probably have caught wind that there are some tax benefits to MVLs at the moment and want to jump on the bandwagon.

I imagine they'll all have a big caveat in their engagement letter that they provide no guarantee of any tax treatment, that's for you/your accountant to worry about.

As others have suggested, sounds like what you're planning is a prime example of what should be caught by the "Transactions in securities" legislation...whether that be the existing stuff, or that proposed in the consultation document you link to. Oversimplifying a little, the main change is clearing up a timescale for what will be considered the difference between one trade ceasing and a new one starting vs someone just having a holiday before recommencing the same trade, as 2 years.

You can liquidate, and as stek says you may well "get away with it"...but I think if HMRC were to look into it, you'd find any distributions you'd claimed as CGT,, they'd reclassify as dividends.

Also, fascinated that the liquidator can liquidate your company in 2-3 days?! I'm guessing you misunderstood...perhaps they said they can get your company into liquidation in 2-3 days, which is not the same as them completing the liquidation in that timescale.

[MrMarkyMark]

Was in a similar situation as you, with greater company reserves, hence, I took as many dividends as the accountant advised this tax year.
You could, also, if inclined, chuck a lump sum into your pension.

You will never get liquidated, to complete, in 2-3 days - sorry!

As far as closing down today and starting tomorrow, I do know plenty that have successfully, as of now, done so, over the years.
I believe when the regulations change, they, HMRC, will then switch the spotlight on to this activity.
A good place to start, IMO, will be the companies that did this straight after the regulation change was announced.
Thars gold in thar hills (for HMRC)

[NoviceContractor]

Was in a similar situation as you, with greater company reserves, hence, I took as many dividends as the accountant advised this tax year.
You could, also, if inclined, chuck a lump sum into your pension.

You will never get liquidated, to complete, in 2-3 days - sorry!

As far as closing down today and starting tomorrow, I do know plenty that have successfully, as of now, done so, over the years.
I believe when the regulations change, they, HMRC, will then switch the spotlight on to this activity.
A good place to start, IMO, will be the companies that did this straight after the regulation change was announced.
Thars gold in thar hills (for HMRC)

What will I lose if that happens? I would anyway pay dividend tax now if I go by the rules but may save some if HMRC do not come behind me. The only loss I see is MVL fee. Is there anything I am missing in terms of what HMRC may ask me to pay? Are there any penalties involved?

[MrMarkyMark]

What will I lose if that happens? I would anyway pay dividend tax now if I go by the rules but may save some if HMRC do not come behind me. The only loss I see is MVL fee. Is there anything I am missing in terms of what HMRC may ask me to pay? Are there any penalties involved?

You are now discussing risk.
What is your feeling should I gamble my whole life savings on the 2:30 at Plumpton, today?
Do you think I'll win?

Penalties, HMRC, yes bloody likely

[NotAllThere]

I think this discussion has turned into "how can I get away with aggressively avoiding tax?".

Locked.