Best accountancy firms for LTD in 2023 - Contractor in tech - Outside IR35

[philgo]

CT returns? Other income sources? Financial advice? It aids bookkeeping, and does it very well, but it is not an expert advisor. You can live without one of them if you are confident in what you are doing. Most contractors aren't or, worse, think they are. A passing acquaintance with an accountant is never a bad idea.

for peace of mind always use a skilled and compliant accountant

[philgo]

May I ask a slightly off-topic question:
After you talked about closing your company a couple of years ago, when/how did you close it and when did you open the new one? Could it be seen that you gained a tax advantage by phoenixing?

Very good question. I am also checking on this in the background and specially on the 2 years time off which starts when you make the distribution via MVL I believe.
Main reason I shutted my LTD down is because in my industry all clients roles became inside IR35 and were not workable through PSC. So I was not able to find any contract out. That's the first contract out I have been offered in the last 2 years and a bit so that's why I am looking at it. Red flag?

[WTFH]

Very good question. I am also checking on this in the background and specially on the 2 years time off which starts when you make the distribution via MVL I believe.
Main reason I shutted my LTD down is because in my industry all clients roles became inside IR35 and were not workable through PSC. So I was not able to find any contract out. That's the first contract out I have been offered in the last 2 years and a bit so that's why I am looking at it. Red flag?

Between this thread and the other, there are multiple red flags.
If you did the “distribution” before actually beginning the MVL process, never mind when you completed it, you could be in for a big headache. You probably need to be engaging (at your cost) the company that did you MVL and asking them about what you can do and when. If it was me, I’d also want them to provide indemnity for you, if you have disclosed everything to them and they give you advice that results in a hefty tax bill, e.g. for phoenixing.
I don’t think IR35 is your problem, it’s the basic understanding of how to run a business.

You need to seek professional help. We are clutching at straws here, getting half a story and trying to piece the rest together.

[philgo]

Between this thread and the other, there are multiple red flags.
If you did the “distribution” before actually beginning the MVL process, never mind when you completed it, you could be in for a big headache. You probably need to be engaging (at your cost) the company that did you MVL and asking them about what you can do and when. If it was me, I’d also want them to provide indemnity for you, if you have disclosed everything to them and they give you advice that results in a hefty tax bill, e.g. for phoenixing.
I don’t think IR35 is your problem, it’s the basic understanding of how to run a business.

You need to seek professional help. We are clutching at straws here, getting half a story and trying to piece the rest together.

Where did I say that the distribution was done before starting the MVL process?
Where did I say that the new company was already incorporated?

You are advising me to learn how to run a business which might be fair enough but why are you creating assumptions ?

One of the risk is effectively to re open a company doing the same business after having done a MVL.

Also this is off topic here but rest assure that this something I am checking as well with professionals.

[WTFH]

Where did I say that the distribution was done before starting the MVL process?
Where did I say that the new company was already incorporated?

You are advising me to learn how to run a business which might be fair enough but why are you creating assumptions ?

You didn't say that the distribution was done before starting MVL, neither did I. I said "IF you did..."
You didn't say you had set up a new company, neither did I. I was advising you to speak to professionals to work out what you can safely do and when.

My comments weren't assumptions, they were advice.

Free advice based on the words you've written and the vagueness of your descriptions.

[philgo]

You didn't say that the distribution was done before starting MVL, neither did I. I said "IF you did..."
You didn't say you had set up a new company, neither did I. I was advising you to speak to professionals to work out what you can safely do and when.

My comments weren't assumptions, they were advice.

Free advice based on the words you've written and the vagueness of your descriptions.

Indeed you used if and started to describe a potential worst case scenario which might not even be valid in this case.

The tone of your last answer is suddenly much more appropriate with what you called "advice" in your previous answer.

And then it's off topic and being looked at by professionals but thanks for mentioning the phoenixing.

[malvolio]

Indeed you used if and started to describe a potential worst case scenario which might not even be valid in this case.

The tone of your last answer is suddenly much more appropriate with what you called "advice" in your previous answer.

And then it's off topic and being looked at by professionals but thanks for mentioning the phoenixing.

I thought (ICBW of course) phoenixing is perfectly clear. Do the closure and subsequent re-opening in the same line of trade give rise to a tax advantage? If yes, then you pay the tax at your highest marginal rate since the closure is effectively disregarded and treated as a dividend. It applies if there is less than 24 calendar months between the final payment and the opening of the new company.

[philgo]

I thought (ICBW of course) phoenixing is perfectly clear. Do the closure and subsequent re-opening in the same line of trade give rise to a tax advantage? If yes, then you pay the tax at your highest marginal rate since the closure is effectively disregarded and treated as a dividend. It applies if there is less than 24 calendar months between the final payment and the opening of the new company.

Same understanding about the 2 years date. However I got told by Liquidator that countdown starts from capital distribution date while a accountant mentioned struck off date which is obviously at the end of the MVL process.
Two professionals two different answers, will consul a third one maybe tax expert.

[northernladuk]

Same understanding about the 2 years date. However I got told by Liquidator that countdown starts from capital distribution date while a accountant mentioned struck off date which is obviously at the end of the MVL process.
Two professionals two different answers, will consul a third one maybe tax expert.

You could also use the forum search method. Next to nothing in this thread to date is new news and has been discussed before. Whether we got to a definitive answer in many cases is questionable but if there are multiple threads with more or less the same answer then that's as close are you are going to get discussing it with other contractors. The date the two years has definitely been discussed multiple times and I believe the answer is pretty clear. In some cases there is a situation with multiple distributions which gives even more clear answer.

Use the google search method by going to google and typing <keywords> site:forums.contractoruk.com
You can have multiple keywords and mess about with them so you've got a good spread of searches.

You really need to use this as you'll also find a raft of answers including ones to the very basic problems you've been struggling with so we don't have to go over it all again.

[philgo]

You could also use the forum search method. Next to nothing in this thread to date is new news and has been discussed before. Whether we got to a definitive answer in many cases is questionable but if there are multiple threads with more or less the same answer then that's as close are you are going to get discussing it with other contractors. The date the two years has definitely been discussed multiple times and I believe the answer is pretty clear. In some cases there is a situation with multiple distributions which gives even more clear answer.

Use the google search method by going to google and typing site:forums.contractoruk.com
You can have multiple keywords and mess about with them so you've got a good spread of searches.

You really need to use this as you'll also find a raft of answers including ones to the very basic problems you've been struggling with so we don't have to go over it all again.

Sure thanks for the tips.
Also aware about the multiple capital distribution dates impacting the 2 years count down.
I think the accountant is wrong but maybe he sees a different risk.
And this thread is drifting away anyway. I understand why you are getting nervous with the non regular users.