Paystream - Company closure

[new2contract]

I was contracting at end clients using my limited company but I have now changed jobs and I'm being paid under PAYE through the recruitment company. My limited company was managed by PAYSTREAM (they charged me £180 a month for them doing very little )I was told it costs £300 to close my limited company.

As if that is not bad enough, I have now been told that I have to pay a further £600 to close my limited company in the most tax efficient way declaring funds as capital gains tax as opposed to the declaring as dividends way which would be covered by the 300. (Is this normal?)

They keep saying there would be additional work required in relation to capital gains tax and that at least they will sort out my personal tax form by the time i need to pay personal tax liability in January 2020. I still do not see what they are doing that justifies an additional £600 - please urgently advise? No way can this be normal to try and extort a total of £900 just to close a limited company that has been open for less than a year with no VAT registration?

How much has everyone had to pay to close their limited company? is what paystream charging the norm?

[simes]

A quick search unearthed the below link.

Does that help? Could you do it yourself?

[northernladuk]

I was contracting at end clients using my limited company but I have now changed jobs and I'm being paid under PAYE through the recruitment company. My limited company was managed by PAYSTREAM (they charged me £180 a month for them doing very little )I was told it costs £300 to close my limited company.

It's normal for an accountant to charge to close a company as it involves extra work not covered by your normal charge. This link shows other people have been surprised by it as well.

https://www.bing.com/search?q=chrage...99&adlt=strict

That said 180 a month an 300 are excessive. You've had your pants properly pulled down there.

As if that is not bad enough, I have now been told that I have to pay a further £600 to close my limited company in the most tax efficient way declaring funds as capital gains tax as opposed to the declaring as dividends way which would be covered by the 300. (Is this normal?)

So I guess the are liquidating it via some from of Members Voluntary Liquidation. £600 sounds too cheap for that. There are certain conditions around it and it's not worth it at certain levels so needs careful planning. I guess it depends if you are going to save more than £600. There are rules about carrying on in the same business for 2 years after as well so you are going to have grill them very hard to make sure they are doing it right. Lots to read about MVL on here..

https://www.bing.com/search?q=MVL+si...23&adlt=strict

Get them to explain every detail of what is happening and then try understand it.

They keep saying there would be additional work required in relation to capital gains tax and that at least they will sort out my personal tax form by the time i need to pay personal tax liability in January 2020. I still do not see what they are doing that justifies an additional £600 - please urgently advise? No way can this be normal to try and extort a total of £900 just to close a limited company that has been open for less than a year with no VAT registration?

How much has everyone had to pay to close their limited company? is what paystream charging the norm?

First link with a load of threads will help with this bit.

I'm sure Maslin's isn't in the business of giving free consultations out but if you get ALL the details of what PS are offering he might give you his opinion.

[northernladuk]

Why do you want to close your limited anyway? Are you not coming back to contracting at all?

If you do I'd sack of Paystream as soon as possible and get yourself a decent accountant.

[northernladuk]

What were the reasons you went with Paystream if though I mentioned it had some bad feedback and not Lucy as recommended?

https://forums.contractoruk.com/umbr...ml#post2285355

[new2contract]

A quick search unearthed the below link.

Does that help? Could you do it yourself?

Hi

I cant do it myself - i do not have any accounting/tax knowledge and would prefer a professional did it - thanks

[new2contract]

It's normal for an accountant to charge to close a company as it involves extra work not covered by your normal charge. This link shows other people have been surprised by it as well.

https://www.bing.com/search?q=chrage...99&adlt=strict

That said 180 a month an 300 are excessive. You've had your pants properly pulled down there.



So I guess the are liquidating it via some from of Members Voluntary Liquidation. £600 sounds too cheap for that. There are certain conditions around it and it's not worth it at certain levels so needs careful planning. I guess it depends if you are going to save more than £600. There are rules about carrying on in the same business for 2 years after as well so you are going to have grill them very hard to make sure they are doing it right. Lots to read about MVL on here..

https://www.bing.com/search?q=MVL+si...23&adlt=strict

Get them to explain every detail of what is happening and then try understand it.



First link with a load of threads will help with this bit.

I'm sure Maslin's isn't in the business of giving free consultations out but if you get ALL the details of what PS are offering he might give you his opinion.

Them charging is not a problem - it is the high cost that is the problem..

thank you i dont understand the method of liquidation mentioned - they said it is the capital tax gains method that is causing such a fee- i was wondering if anyone had experienced that

[new2contract]

Why do you want to close your limited anyway? Are you not coming back to contracting at all?

If you do I'd sack of Paystream as soon as possible and get yourself a decent accountant.

i dont want to go back to contracting tbh

[new2contract]

What were the reasons you went with Paystream if though I mentioned it had some bad feedback and not Lucy as recommended?

https://forums.contractoruk.com/umbr...ml#post2285355

a recruitment agency recommended them at the time

[northernladuk]

a recruitment agency recommended them at the time

Well you've said you don't want to come back to contracting but should anyone else in a similar situation be reading this. Don't ever take the agencies recommendations. I wish you'd told us this back at the beginning.

The one and only reason they are recommending is because they will be getting a very healthy kick back from Paystream. Because the margins in umbrellas are so small the only way they can afford to pay kickbacks is to pull your pants down at any possible opportunity.

If you ever go with anyone an agent recommends, do it via the new business line or something so the agency gets nada.