"Phoenixing" issue - sue SJD, or any other solution?

[LondonManc]

I'd try and get another permie job for the next couple of years, that is after all why you shut down your Ltd, keep the truth the truth.

Also, it would hopefully bring training opportunities while you assess\watch what happens in the contract market which is potentially undergoing quite a change.

We have a winner. Stick with perm for a bit is the safest option, definitely.

[WordIsBond]

Not done precise calcs but I think the difference in tax would be c. 50k.

Assuming everything is taxed at additional rate (probably won't all be, but for purposes of discussion) that would be an MVL amount of around £175K. If that's not your amount, you probably should do precise calcs so you know what you are talking about.

Presumably over your two years you took out around £20K total salary, plus around £60K dividends (to stay within basic rate band). So you'd have had maybe £325K in revenue over the two years (£300K profit after salary and expenses), leaving around £240K after tax profits to be distributed as dividends / retained for your MVL.

You were doing well for yourself. Must have been a very, very good PAYE offer to leave that behind.

As for interest/penalties, penalties are usually for those who blow off the law, not for those who think they are doing things right and get it wrong. I think the worst that could be argued against you is that you tried to get it right and got it wrong. I don't penalties would be significant if there are any at all. Interest, yes, obviously.

[WordIsBond]

I'd try and get another permie job for the next couple of years, that is after all why you shut down your Ltd, keep the truth the truth.

Also, it would hopefully bring training opportunities while you assess\watch what happens in the contract market which is potentially undergoing quite a change.

A guy who was pulling in £700 / day or more is not likely looking for training opportunities nor particularly concerned with what happens in public sector contracting.

[LondonManc]

A guy who was pulling in £700 / day or more is not likely looking for training opportunities nor particularly concerned with what happens in public sector contracting.

Not necessarily; the skills that have been able to secure those rates may be ageing; if there's a major new release, it's worth getting the upgrade training at least.

[missinggreenfields]

A guy who was pulling in £700 / day or more is not likely looking for training opportunities nor particularly concerned with what happens in public sector contracting.

You presume that any changes will only apply to public sector. If any changes work in public, they will be rolled out to private sector.

[gables]

A guy who was pulling in £700 / day or more is not likely looking for training opportunities nor particularly concerned with what happens in public sector contracting.

Umm, I didn't mention PS and also got the impression the OP was risk averse. And anyway 700/day or 50/day if you stop looking to learn\train then I reckon you're on a sticky wicket.

[Scratch It]

I dont think anyone has mentioned this yet, but SJD insolvency services (i think that's the name) are a separate legal entity to SJD accountancy. I'm sure that you know this - though the implication is that you need to make sure that you are speaking to your insolvency practitioner, not your accountant. I dont think that accountants can complete MVLs - though I could be wrong.

Incidentally, SJD insolvency have quickly become one of the largest insolvency practices in the UK, for what I suspect is completing contractor MVLs exclusively.

[Maslins]

I dont think anyone has mentioned this yet, but SJD insolvency services (i think that's the name) are a separate legal entity to SJD accountancy. I'm sure that you know this - though the implication is that you need to make sure that you are speaking to your insolvency practitioner, not your accountant. I dont think that accountants can complete MVLs - though I could be wrong.

Incidentally, SJD insolvency have quickly become one of the largest insolvency practices in the UK, for what I suspect is completing contractor MVLs exclusively.

You're correct accountants can't complete MVLs, only licensed insolvency practitioners. SJD Insolvency will of course have one of these.

I appreciate most people above have suggested the OP wouldn't have much chance of a successful legal claim against SJD regardless, but if hypothetically they did, I'd suggest it'd be the accountancy arm. Liquidators do liquidations, accountants should be the ones dealing with the tax advice, hence helping in the decision as to whether or not it's a good idea.

One SJD accounting client was pointed towards SJD Insolvency, who were quoting £1,995+VAT +distributions. That client approached MVL Online, at about half the fee. He went back to SJD accountants saying he'd like to use MVLO. SJD accountancy division then said they'd need to charge an extra £1,000+VAT accountancy fee for extra work required if the client were to use a different liquidator. This practice is unfortunately entirely legal, as of course they'd argue it's genuinely down to extra work required, rather than just some anti-competitive tactic. "Like the Murphys..." and all that

With SJD accountancy having huge numbers of contractor clients, and the lifespan of a typical contractor company being relatively short, it's no surprise that SJD insolvency are doing a LOT of business.

[Fred Bloggs]

Maslins can't say it. So I will. SJD's remaining customers need to wake up and vote with their feet. The venture capitalists paid way over the odds for Mr Dolan's business (nice one Simon) and they have to get their money back anyway they can. Look around, there are better and cheaper options everywhere you look, almost.

[LondonManc]

Maslins can't say it. So I will. SJD's remaining customers need to wake up and vote with their feet. The venture capitalists paid way over the odds for Mr Dolan's business (nice one Simon) and they have to get their money back anyway they can. Look around, there are better and cheaper options everywhere you look, almost.

I'll counter that with; I've been with SJD for 6 years and I'm really happy with their service. I've got a great accountant assigned to me and find their spreadsheet a useful tool, not only for general accounting but for what-if scenarios when I'm looking at two contracts in different places; I can weigh up the bottom line for contracts in different locations with different levels of rate and expenses very easily.