Closing down ltd/starting up again

[mrtuk]

Closing down a Ltd Co is a very easy thing to do and has advantages in closing off certain future tax issues that may otherwise bite you in the future.

I am considering going perm, and so interested in this comment. If I leave the company dormant, would i need to also keep public indemnity and IPSE membership etc running in case an old client had a problem with something that was done under an old contract, or HMRC wanted to investigate IR35 status for a prior contract etc?? Would closing the company down, effectively mean that these things could no longer happen as the co is no longer active?

[northernladuk]

I am considering going perm, and so interested in this comment. If I leave the company dormant, would i need to also keep public indemnity and IPSE membership etc running in case an old client had a problem with something that was done under an old contract, or HMRC wanted to investigate IR35 status for a prior contract etc?? Would closing the company down, effectively mean that these things could no longer happen as the co is no longer active?

Google is your friend.

http://www.contractoruk.com/ir35/con...ding_4706.html

[Fred Bloggs]

I am considering going perm, and so interested in this comment. If I leave the company dormant, would i need to also keep public indemnity and IPSE membership etc running in case an old client had a problem with something that was done under an old contract, or HMRC wanted to investigate IR35 status for a prior contract etc?? Would closing the company down, effectively mean that these things could no longer happen as the co is no longer active?

Cannot be 100% guaranteed but pretty much, yes. A company cannot be struck off without HMRC saying they have no objection. You'd still have certain obligations as the ex director, but FWIW, I think it is a waste of time and effort keeping a non trading company open. They're so easy to open and close at virtually zero cost, I can't see how it makes sense to keep one going. Of course, YMMV, but that's my 2 cents.

[psychocandy]

You need to bear in mind that any cash currently held in the Ltd accounts would be less easy to conceal from the Job Centre, once it's in personal accounts.

None in there anyway.

[TheFaQQer]

I am considering going perm, and so interested in this comment. If I leave the company dormant, would i need to also keep public indemnity and IPSE membership etc running in case an old client had a problem with something that was done under an old contract, or HMRC wanted to investigate IR35 status for a prior contract etc?? Would closing the company down, effectively mean that these things could no longer happen as the co is no longer active?

HMRC could still investigate your IR35 status and pursue for the tax owed. When your IPSE membership is up for renewal, give the office a call and discuss the options available to you.