My client will only renew if within IR35 - Advice?

[cojak]

Nope - HMRC can stop or complain that tax is outstanding during closure as it says in that article (I had a glitch in my company paperwork that HMRC grumbled about which temporarily halted my closure).

But once HMRC give the OK and the company is closed. That's it.

[BolshieBastard]

Doesn't it ….?

The issue here is HMRC has the opportunity to object to any company closure. If they do object, the company isnt being closed and liable for investigation.

[Maslins]

I think it's worth distinguishing between:
- what is legally possible,
- what is likely.

Companies can be resurrected, even after being fully dissolved. Main times you'll see that mentioned on here is the director doing it to get funds back that would otherwise be lost to bona vacantia.

Third parties can resurrect companies too. However, it's expensive to do so. Therefore a third party (eg HMRC) is only likely to do so if:
1) they're very confident they'd been underpaid (IR35 challenges seem to be a bit 50:50 at best from HMRC's perspective),
2) the amount at stake is significant enough to warrant it.
For your average contractor, where there's no suggestion of fraud, just a possibly questionable decision on the grey area of IR35, I can't see HMRC reviving the company in practice, though legally they could.

[Peoplesoft bloke]

Nope - HMRC can stop or complain that tax is outstanding during closure as it says in that article (I had a glitch in my company paperwork that HMRC grumbled about which temporarily halted my closure).

But once HMRC give the OK and the company is closed. That's it.

Ok I think the key is in the timing then - the article says
“When a contractor limited company is being closed down, the contractor submits a final tax return to HMRC, which details all of the final activities of the company. HMRC has a window of 12 months to investigate the business if they suspect there is tax still to pay”

I guess you were saying after the 12 month window there’s no further comeback?

I will admit to not being an expert and loathe to argue with Cojack (it didn’t end well last time)


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[cojak]

Ok I think the key is in the timing then - the article says
“When a contractor limited company is being closed down, the contractor submits a final tax return to HMRC, which details all of the final activities of the company. HMRC has a window of 12 months to investigate the business if they suspect there is tax still to pay”

I guess you were saying after the 12 month window there’s no further comeback?

I will admit to not being an expert and loathe to argue with Cojack (it didn’t end well last time)


Sent from my iPhone using Contractor UK Forum

I've experience of closing my company, that's all PB

[ChimpMaster]

Ok I think the key is in the timing then - the article says
“When a contractor limited company is being closed down, the contractor submits a final tax return to HMRC, which details all of the final activities of the company. HMRC has a window of 12 months to investigate the business if they suspect there is tax still to pay”

I guess you were saying after the 12 month window there’s no further comeback?

I will admit to not being an expert and loathe to argue with Cojack (it didn’t end well last time)


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That's pretty standard TBH, with any tax return.

[Peoplesoft bloke]

I've experience of closing my company, that's all PB

I closed mine too when I went permie (I got better) but just because HMRC didn’t come after me for anything last time doesn’t mean they couldn’t have done.


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