I was a Limited Company contractor before IR35 but now working PAYE Umbrella for the same employer.
I want to get rid of my limited company as I doubt I will be using it again, and I have two options:
Option 1 suggested by my existing accountant: Pay for them to do my final accounts, pay the Corportation Tax that I owe, and leave it there.
- This will cost a few hundred.
Option 2 suggested by 'Future Strategy': perform an 'Administrated Dissolution', do not pay the Corportation Tax tax that the limited company owes, and save myself several thousand.
It suffices to say that Option 2 is tempting! Here is how it was explained to me:
- The company is closed
- The Limited company PAYS NO CORPORATION TAX (the cash that Isaved in my business acct is paid out in dividends instead)
- The company's creditors (HMRC) are notified that the debt due will not be paid.
- They will dispute this, and there will be nothing that they can do.
- There are zero reprecussions in terms of other limited companies, personal credit history, etc. UNLESS open essentially the same limited company to continue contracting (this would be a 'phoenix' company rising from its own ashes that would be illegal). So this is a one-time thing for those coming off of IR35.
- I am not sure if me continuing to work for the same employer under Umbrella PAYE or as a Permanant employee will count as a 'Pheonix company activity'? Will an Administrated Dissolution prevent me from working in the sasme industry?
- The guy says this is entirely legal, and that the changes of a retrospecive ruling forcing me to pay up in the future (similar to Loan Charge I saw in the news) is remote.
The website looks good:
Future Strategy
Trustpilot reviews look good but only go back a year:
Future Strategy Reviews | Read Customer Service Reviews of futurestrategy.co.uk | 2 of 4
Any advice that seasoned Contractor Accountancy experts can share would be appreciated!
I want to get rid of my limited company as I doubt I will be using it again, and I have two options:
Option 1 suggested by my existing accountant: Pay for them to do my final accounts, pay the Corportation Tax that I owe, and leave it there.
- This will cost a few hundred.
Option 2 suggested by 'Future Strategy': perform an 'Administrated Dissolution', do not pay the Corportation Tax tax that the limited company owes, and save myself several thousand.
It suffices to say that Option 2 is tempting! Here is how it was explained to me:
- The company is closed
- The Limited company PAYS NO CORPORATION TAX (the cash that Isaved in my business acct is paid out in dividends instead)
- The company's creditors (HMRC) are notified that the debt due will not be paid.
- They will dispute this, and there will be nothing that they can do.
- There are zero reprecussions in terms of other limited companies, personal credit history, etc. UNLESS open essentially the same limited company to continue contracting (this would be a 'phoenix' company rising from its own ashes that would be illegal). So this is a one-time thing for those coming off of IR35.
- I am not sure if me continuing to work for the same employer under Umbrella PAYE or as a Permanant employee will count as a 'Pheonix company activity'? Will an Administrated Dissolution prevent me from working in the sasme industry?
- The guy says this is entirely legal, and that the changes of a retrospecive ruling forcing me to pay up in the future (similar to Loan Charge I saw in the news) is remote.
The website looks good:
Future Strategy
Trustpilot reviews look good but only go back a year:
Future Strategy Reviews | Read Customer Service Reviews of futurestrategy.co.uk | 2 of 4
Any advice that seasoned Contractor Accountancy experts can share would be appreciated!
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