Entrepreneurs tax relief after Liquidation even if i am employed

[mike78]

I am in inside IR35 as of now. I have a limited company which I am liquidating now . Couple of questions.

1. Entrepreneurs tax relief is affected if I am on high paying job ? Is this will be same 20 % CGT and 10% Entrepreneurs, tax, relief ?
2. Liquidator will help me to get necessary documents to get ETR as per Members Voluntary Liquidation (MVL) | Frost Group (section - Completion #5)
Does this mean that ETR is approved and now it is matter of submitting and myself/accountant can submit it without hassle ?


Regards
Mike

[GhostofTarbera]

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[ChimpMaster]

I am in inside IR35 as of now. I have a limited company which I am liquidating now . Couple of questions.

1. Entrepreneurs tax relief is affected if I am on high paying job ? Is this will be same 20 % CGT and 10% Entrepreneurs, tax, relief ?
2. Liquidator will help me to get necessary documents to get ETR as per Members Voluntary Liquidation (MVL) | Frost Group (section - Completion #5)
Does this mean that ETR is approved and now it is matter of submitting and myself/accountant can submit it without hassle ?


Regards
Mike

I'm guessing English isn't your first language so I hope the following is clear.

1. No. ER, otherwise now known as BADR, is not dependent on your marginal rate of income tax - yet. The tax rate for qualifying BADR is 10% as of today. This might of course change with the budget in March this year.
2. No. ER is something you will claim on your personal SATR. Your accountant will be able to help you with this. The insolvency firm will facilitate the liquidation of your company, and they do not get involved in your personal tax affairs.

I sure hope you have an accountant.

[mike78]

I'm guessing English isn't your first language so I hope the following is clear.

1. No. ER, otherwise now known as BADR, is not dependent on your marginal rate of income tax - yet. The tax rate for qualifying BADR is 10% as of today. This might of course change with the budget in March this year.
2. No. ER is something you will claim on your personal SATR. Your accountant will be able to help you with this. The insolvency firm will facilitate the liquidation of your company, and they do not get involved in your personal tax affairs.

I sure hope you have an accountant.

yes, you are absolutely right. many thanks for you comments.

Let me ask this way. while filing SATR, does it matter how the liquidator liquidate the company among the 3 options mentioned at Members Voluntary Liquidation (MVL) | Frost Group
I can choose any option then accountant doesn't bother which option I opted and he just file SATR.

[Lance]

yes, you are absolutely right. many thanks for you comments.

Let me ask this way. while filing SATR, does it matter how the liquidator liquidate the company among the 3 options mentioned at Members Voluntary Liquidation (MVL) | Frost Group
I can choose any option then accountant doesn't bother which option I opted and he just file SATR.

No. The option you choose makes no difference to the SATR.....
Have you read them? Have you spoken to them? You’re asking a really simple question that demonstrates a horrible lack of understanding of what’s involved.

You probably want bronze though.
And read the page. £850 is a catchy number but it’s quite a bit more than that in total.
And speak to more than one practitioner.

[Maslins]

If you have an accountant, then these questions should be for them. They'll know your situation better than anyone else, and they (unlike the liquidator) should be able to advise on personal tax affairs.

If you don't have an accountant...then I'd be nervous about how this may end up going. Sure, some people are savvy and stick to doing basic things and can DIY their accounts/tax affairs without problem. Here it sounds like you're not that savvy, and are looking to enter a reasonably complex situation. I therefore think DIYing with a bit of advice from a free internet forum is a dangerous option.

However, to answer your specific queries:
1) No, your current income is irrelevant when calculating personal tax liabilities that qualify for BADR (what was entrepreneurs relief).
2) No it does not mean BADR is approved. You/your accountant will need to declare for personal tax, can apply for BADR if you/they believe you qualify, and HMRC may possibly challenge it if they think you don't.