Is it legitimate to close ltd & use umbrella so that to cash out the lump sum on ltd company bank account?
Actually my situation is more complicated that. I got converted to perm at same company recently, and have a pending contract offer which seems to take forever to get finalised. My understanding is that if I close my ltd now and cash out lump sum as entrepreneur relief, and if that pending contract offer gets official, it's a fraud in HMRC point of view if I open another ltd in a very short period of time after closing previous ltd. I also prefer to cash out the lump sum if possible. That's why I'm asking if it's legitimate to use a umbrella company after closing ltd.
Actually my situation is more complicated that. I got converted to perm at same company recently, and have a pending contract offer which seems to take forever to get finalised. My understanding is that if I close my ltd now and cash out lump sum as entrepreneur relief, and if that pending contract offer gets official, it's a fraud in HMRC point of view if I open another ltd in a very short period of time after closing previous ltd. I also prefer to cash out the lump sum if possible. That's why I'm asking if it's legitimate to use a umbrella company after closing ltd.
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