Originally posted by TheCyclingProgrammer
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The comment above regarding the 5% shares is not incorrect but it is misleading as it may lead to believe that a contractor limited company can simply qualify for the ER relief on this basis where it would actually be in most cases not possible for a contractor company to claim the relief even if the 5% shares requirement is satisfied. As mentioned in my post above, for a service company where perhaps the only income is consultancy fees with expenses at a minimal level, it may be difficult to justify that cash surplus is needed for trading operations so the ER cannot be applied to the final distribution if this was the case.
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