I had been running a Ltd for ~8 years but IR35 seemed to kill any chance of getting outside IR35 contracts and then covid just sealed the deal so I closed the company last January. I have been with an umbrella since March 2020 but might have a lead on an outside IR35 contract again. Can I create a new Ltd so soon? Any issues to consider? Should I use a different company name?
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Depends how you closed it. Read this thread. It's someone in exactly the same situation as you so should answer your question but also has all the links around when you can and when you can't start a new company so you will understand why.
https://forums.contractoruk.com/ir35...g-2-years.html'CUK forum personality of 2011 - Winner - Yes really!!!!
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In principle, no issue. I opened a Ltd Co specifically for a post retirement side hustle job, then closed it after around a year when the work was done. Took me just a few minutes to register the new company on Companies House website. Recieved the incorporation certificate and standard articles as pdf within about 20 minutes of completing the registration. It's never been easier.Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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At the moment it's actually too easy - so make the most of it while you can as I suspect company registration will become harder in an attempt to resolve issues with dodgy company registrations.Originally posted by Fred Bloggs View Postmerely at clientco for the entertainmentComment
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Did you formally liquidate (MVL) the old company with more than £25k as a capital distribution or just strike it off with less than £25k (DS01)? If the former, yes, there are "issues". If not, no problem, you can open and close companies at will (i.e., just not for tax avoidance purposes).Comment
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Permietractor mentality. Seen it happen with 100s of my previous contractor "colleagues"; virtually all closed their companies and are PAYE or perm now.Originally posted by Grah View Post
And people wonder why IR35 legislation came in...
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And I'd have to agree with this. One inside IR35 gig and they bail out. Just using the LTD as a tick box and not being a contractor.Originally posted by ensignia View Post'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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And you would be wrong.
I have had four inside gigs since March 2020. I originally came to the conclusion that the desired effect of the legislation - to get rid of single worker limited companies in favour of great big consultancies - had worked. There were very few contracts generally and almost none outside IR35. I thought the proposition was dead.
Yes, I know there have been some people who have been lucky enough to have stayed outside. Good for them. I am sure you two mean well and weren't taking the opportunity to score easy 'I am a smug git' points.
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Latter definitely.Originally posted by jamesbrown View Post
Thanks for all the constructive replies.Comment
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Unfair generalisation. I was contracting outside and I am 100% sure I met all of the criteria. Amongst other things, although I know these aren't the whole story, I was contracting for multiple clients simultaneously, working on clearly defined projects with risk and restitution at my own cost. I was even doing work billing in US dollars for a US client.Originally posted by ensignia View Post
Then covid killed the US work, and IR35 killed the UK stuff. There has been a total PSC ban in my sector. You may be familiar with offpayroll.org and their daily listings of outside gigs - there have been 2 listed in the last 2 years for my skillset.
I have gone PAYE, but doing a very different role and at a place I have never previously worked at, mainly because I did need some income and also because I wasn't prepared to go inside IR35.
I wasn't a permietractor by any means - but I did get wiped out by IR35.
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