MVL question...distribution in specie?

[northernladuk]

Is this part true?

Of course. Oddly enough it's possibly the only valid one on that list. If you can't open another LTD this is your only option.

[Lance]

MVL question...distribution in specie?

Is this part true?

Not really.
Claiming that you can break TAAR rules and simply pay additional tax is not true.
It might be true in some cases, but each case would be considered on its own merits. Possibly in a tax tribunal. Possibly, albeit unlikely, resulting in a stretch at her majesty’s pleasure if tax evasion can be demonstrated.

Edit: can’t see highlighted sections on an iPhone so I might be answering a different point. Not deleting this though as it seems a common theme recently.

[DaaaaaaaaaaN]

Not really.
Claiming that you can break TAAR rules and simply pay additional tax is not true.
It might be true in some cases, but each case would be considered on its own merits. Possibly in a tax tribunal. Possibly, albeit unlikely, resulting in a stretch at her majesty’s pleasure if tax evasion can be demonstrated.

Edit: can’t see highlighted sections on an iPhone so I might be answering a different point. Not deleting this though as it seems a common theme recently.

I was specifically referring to the option of contracting via through an umbrella company after an ER distribution. Given you are treated as a PAYE employee via the umbrella, I assume there is no issues with TAAR?

[bcontractor]

Not really.
Claiming that you can break TAAR rules and simply pay additional tax is not true.
It might be true in some cases, but each case would be considered on its own merits. Possibly in a tax tribunal. Possibly, albeit unlikely, resulting in a stretch at her majesty’s pleasure if tax evasion can be demonstrated.

Edit: can’t see highlighted sections on an iPhone so I might be answering a different point. Not deleting this though as it seems a common theme recently.

I don’t want to ignite an argument, nor do I want to claim that it’s possible or not. Personally, I wouldn’t be comfortable with this option anyway.

As this has been mentioned to me by two different tax advisors, should I challenge them?

[northernladuk]

I was specifically referring to the option of contracting via through an umbrella company after an ER distribution. Given you are treated as a PAYE employee via the umbrella, I assume there is no issues with TAAR?

Correct. You aren't in the same business, you are now an employee.

[northernladuk]

I don’t want to ignite an argument, nor do I want to claim that it’s possible or not. Personally, I wouldn’t be comfortable with this option anyway.

As this has been mentioned to me by two different tax advisors, should I challenge them?

Until it's challenged in court then it's just their opinion. Tax advisors also suggest film companies to the the stars and create Umbrella schemes etc so they aren't infallable and their opinion on a matter may not always align with HMRC's at the end of the day.

Bottom line is, claiming a tax benefit and then doing it again within two years is going to attract the wrong attention and if HMRC's intention is to stop people shutting companies, claming benefits then starting again you can bet your bottom dollar they'll challenge anything that doesn't meet their guidance regardless of what tax advisor thinks.
Paying it back and then carrying on is just a questionable loophole that brings a lot of risk and pain with it.

[Lance]

I don’t want to ignite an argument, nor do I want to claim that it’s possible or not. Personally, I wouldn’t be comfortable with this option anyway.

As this has been mentioned to me by two different tax advisors, should I challenge them?

Thing is... what is a tax advisor?
It’s not a profession with qualifications. There are no regulations or regulators.


Financial advisors are regulated. Tax lawyers are regulated. Accountants may be regulated.
Some tax advisors might be lawyers, financial advisors or accountants, but it’s not mandatory.
anyone can setup as a tax advisor and sell bad advice.